Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs

SUPPORT

Menu  
 
Apply Now
Apply Now

Tata Capital > Blog > Loan for Education > What are the Expenses Covered Under Education Loan?

Loan for Education

What are the Expenses Covered Under Education Loan?

What are the Expenses Covered Under Education Loan?

Meeting the skyrocketing costs of abroad education has become quite challenging nowadays. The exorbitant tuition fees, living expenses, and other associated costs can quickly burn a hole in anyone’s savings.

Nevertheless, with the wide availability of personal loans for education, students can feasibly fund their abroad studies without running their savings into the ground. However, before you apply for a loan, you must know what expenses the loan covers and what it doesn’t.

Detailed list: Expenses commonly covered in Indian education loans

Understanding what expenses are covered in education loan in India helps students budget effectively.

Typically, education loan covers the following:

  • Tuition fees paid to the college or university
  • Admission, examination, and registration fees
  • Library, laboratory, and caution deposits (refundable)
  • Books, study materials, stationery, and laptop costs
  • Uniforms, instruments, and equipment required for the course
  • Travel expenses, including airfare for overseas education
  • Project work, internship, and thesis-related costs

These items clearly explain what does education loan cover in practical terms. Overall, expenses covered in education loan include both academic and essential living costs, ensuring education loan covers for students throughout the duration of their course without financial strain.

What does an education loan cover?

Expenses covered in education loan include:

1. Tuition costs

Tuition fees amount to over half of the total education expenses of a student. So, these expenses are covered under all education loan lenders, regardless of whether they are NBFCs, public banks, private banks, international lenders, etc.

2. Living expenses

From accommodation and utility bills to food and travelling, living expenses are a broad category that includes various little costs associated with day-to-day life abroad. However, there’s no uniformity in how living expenses are covered under education loans.

Lenders usually put a limit on monthly living expenses, which is a percentage of the total loan amount. So, it’s best to discuss what the education loan covers for students, especially of living expenses at length with your lender before making the deal.

3. Health insurance

Most universities abroad require students to have health insurance before flying to the respective country. As a result, most education loan lenders cover the costs of health insurance. However, it’s best that you check with your lender, as the coverage of insurance costs varies from lender to lender.

4. Travel expenses

Travelling abroad can itself be a considerable expense and one which can easily run into lakhs. Taking this into account, many banks now offer the provision to include travelling costs in the education loan coverage, allowing you to keep your savings intact.

With that said, it’s important to note that lenders don’t usually include the travelling costs as a default part of the loan. You may have to explicitly request this inclusion to enjoy this benefit.

As a side note, before you add more to your loan, run it through a personal loan EMI calculator to get hold of your future EMIs and interest payable.

5. Other study-related expenses

Not all your study-related costs are covered in your tuition. Many other expenses are associated with your academics, such as buying books, library subscriptions, field visits, trips, etc. Covering these costs out of your pocket may be a bad move, as they all carry a huge price tag.

Fortunately, many education loan covers for students cover these costs as well. But it’s still best to clear it out with your lender before moving forward.

What is not covered in Indian education loans?

While understanding what expenses are covered in education loan in India is important, knowing the exclusions helps avoid confusion. Generally, beyond the expenses covered in education loan, the following are not financed:

  • Personal lifestyle expenses such as shopping, entertainment, or vacations
  • Luxury accommodation upgrades beyond standard limits, even if does education loan cover living expenses applies
  • Coaching or entrance exam fees not linked to the approved course
  • Penalties, fines, or late payment charges
  • Travel for personal reasons, outside academic requirements
  • Expenses after course completion, unless job-oriented training is approved

Understanding what does education loan cover also clarifies what it doesn’t. While education loan covers essential academic needs, education loan covers for students are limited to course-related costs only, as defined by lender guidelines.

Tips: Maximising education loan benefits for Indian students

To make the most of your loan, start by clearly understanding what expenses are covered in education loan in India and plan your budget accordingly. Follow these practical tips:

  • Review the sanction letter carefully to know the exact expenses covered in education loan
  • Confirm with the lender what does education loan cover, including academic and non-academic costs
  • Use funds strictly for approved purposes, as education loan covers only course-related needs
  • Clarify if does education loan cover living expenses such as hostel, food, and accommodation
  • Maintain fee receipts and invoices for smooth disbursements and compliance
  • Opt for moratorium wisely to reduce repayment pressure after studies

By aligning spending with approved categories, education loan covers for students can effectively support both education and essential living needs throughout the course duration.

Conclusion

Now that you’re aware of all the education loan inclusions, you can make an informed decision and get a loan in line with all your needs.

Looking for an education loan at attractive interest rates? End your search with Tata Capital’s bespoke loan offerings. From competitive rates and a seamless application process to swift disbursals, we offer unmatched affordability and convenience.

Start your application process by checking your personal loan eligibility today!

Apply Now

Add wings to your dream. Apply for an Education loan!

Apply now
Popular Searches
Education Loan for B.Sc Education Loan for BA Education Loan for PhD What is Margin in Education Loan Education Loan for Nursing Vidya Lakshmi Portal Education Loans for Girl Students in India Courses Eligible for Education Loan Education Loan Against Property 10 Best Loan Apps For Students
More About Loans
Education Loan Documents required for Education Loan Education Loan Interest Rates Education Loan EMI Apply for Education Loan Education Loan Eligibility Creteria Education Loan After 12th Education Loan Disbursement Process Education Loan for Abroad Studies Education Loan Moratorium Period

FAQs

Does an education loan in India cover living and hostel expenses?

Yes. Education loan covers hostel fees, food, and accommodation. This clarifies does education loan cover living expenses under approved limits set by Indian lenders.

Are travel and air tickets included in an education loan for study abroad?

Yes, education loan covers airfare and mandatory travel for overseas studies, forming part of the expenses covered in education loan for international education.

What exam fees are covered by an education loan in India?

Entrance exams, semester exams, and institutional examination fees are included when lenders define what does education loan cover in India.

Do Indian banks provide loans for laptops and study materials?

Yes. Education loan covers laptops, books, stationery, and essential study tools required during the course duration.

 

Is health insurance for international students covered in an education loan?

If mandated by the university, health insurance is included in what expenses are covered in education loan in India for study abroad.

What expenses are not covered in an education loan in India?

Personal shopping, entertainment, luxury travel, and non-academic costs are excluded from expenses covered in education loan.

What expenses are covered in an education loan in India?

Education loan covers tuition, academic fees, living costs, travel, and essentials, ensuring education loan covers for students throughout their approved course.

 

Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Home Loan EMI Calculator

Business Loan EMI Calculator

Used Car Loan EMI Calculator

Two Wheeler Loan EMI Calculator

Loan Against Securities Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Private Equity Funds

Useful Links and Resources

Policies, Codes & Other Documents

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download