A 100% education loan (also called a fully funded education loan) is one where the bank or financial institution covers the entire cost of education without requiring the student or their family to pay any upfront amount. This includes tuition fees, hostel fees, books, equipment, travel, and other related costs. Such loans are especially beneficial for students pursuing overseas education where expenses are significantly higher.

The Government of India, through public sector banks and initiatives like the Vidya Lakshmi Portal, ensures that all deserving students have access to financial aid for their studies. These banks work under the guidelines of the Indian Banks’ Association (IBA) and the Reserve Bank of India (RBI) to make education loans accessible and affordable.

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Banks That Offer 100% Education Loans in India

Several leading public and private sector banks in India provide 100% education loans to eligible students. Below are the top options you can consider:

1. State Bank of India (SBI) – SBI Global Ed-Vantage Scheme

The State Bank of India, India’s largest public sector bank, is one of the most trusted providers of education loans for abroad studies.
Key features:

• Covers up to 100% of total education expenses including tuition, travel, books, and living costs.

• Offers loans up to ₹1.5 crore for studying abroad.

• Repayment starts after the course plus 6 months moratorium period.

• Competitive interest rates with female student concessions.

• Option to apply through the Vidya Lakshmi Portal.

Related keywords: SBI education loan, study abroad loan, fully funded education loan.

 

2. Bank of Baroda – Baroda Scholar Loan

Bank of Baroda is known for its student-friendly education loan schemes.
Key features:

• Provides up to 100% loan coverage for studies in India and abroad.

• Collateral-free loans up to ₹7.5 lakh under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL).

• Offers low interest rates and flexible repayment tenure up to 15 years.

• Quick processing and online application facility.

Related keywords: Baroda education loan, government student loan, higher education finance.

 

3. Canara Bank – IBA Model Education Loan Scheme

Canara Bank provides 100% coverage for eligible courses recognized by AICTE, UGC, or the Government of India.
Key features:

• No margin money required for loans under ₹4 lakh.

• For loans above ₹4 lakh, a small margin may apply, but scholarships can cover this amount.

• Covers tuition, books, equipment, and other essential costs.

• Interest subsidy available for students from economically weaker sections under the CSIS (Central Sector Interest Subsidy Scheme).

Related keywords: Canara Bank education loan, education loan with subsidy, student financial aid.

 

4. Punjab National Bank (PNB) – Udaan and Saraswati Schemes

PNB Udaan (for abroad studies) and PNB Saraswati (for Indian studies) offer 100% funding options to eligible students.
Key features:

• Covers full educational expenses, including tuition, living, and travel costs.

• No margin for loans up to ₹4 lakh.

• Repayment period up to 15 years.

• Interest rate concessions for female applicants.

• Available through the government-backed Vidya Lakshmi Portal.

Related keywords: PNB Udaan loan, 100 percent student loan, study loan India.

 

5. Union Bank of India – Education Loan Scheme

Union Bank provides comprehensive education loans for both domestic and international studies.
Key features:

• Up to 100% funding based on the student’s profile and course.

• Attractive interest rates with flexible EMI options.

• Moratorium period till completion of the course plus 12 months.

• Fast online application through Union Education Loan Portal.