Top Education Loan Options for M.Sc. and IIT JAM Students

If you are planning to do M.Sc. after clearing IIT JAM, then you know it is a big achievement. But along with this success comes another challenge – money.

Studying in IIT or any good college costs money. You need to pay for fees, hostel, food, books, and other things. All of this could cost at least ₹2 to 4 lakhs. Sometimes parents cannot manage this big amount at one time. That is why education loans are very helpful.

In this blog, I will tell you about the best education loan options for M.Sc. and IIT JAM students. I will also tell you what benefits they give, what documents you need, and how to apply.

Why take an education loan for M.Sc.?

Many students ask themselves, “Why take out a loan when the fees at IIT are so low?”

Yes, the tuition fee is less compared to private colleges. But you still have to spend on:

• Semester fees – ₹10,000 to ₹25,000
• Monthly cost of food and hostel – ₹3,000 to ₹7,000
• Books – ₹5,000 to ₹10,000
• Laptop or project work – ₹30,000 to ₹50,000

And if you took IIT JAM coaching before admission, that is extra ₹70,000 to ₹1.5 lakh.

So overall, for two years of M.Sc., you need good money. Instead of worrying about money, you can take an education loan and study without stress.

Best Banks for Education Loans

Here are some banks that give education loans for IIT JAM and M.Sc. students:

1. The Scholar Loan Program of the State Bank of India (SBI)

• You can get up to ₹40 lakh if you join IIT or other top colleges
• Interest rate around 8.15% (girls get a small discount)
• No processing fee for IIT students
• You can repay in 15 years after your course
• No security for loan up to ₹7.5 lakh

Why choose SBI?

SBI gives special benefits to IIT students. The process is fast and interest is low.

2. Punjab National Bank (PNB) – Pratibha Scheme

• Loan amount: Up to ₹40 lakh
• Interest: Around 8.5%
• No processing fee
• Repay in 15 years
• No security up to ₹7.5 lakh

Why PNB?

PNB also has a special scheme for top institutes like IIT.

3. Canara Bank – Education Loan

• Loan: Up to ₹10 lakh
• Interest: Around 8.75%
• No processing fee
• No security up to ₹7.5 lakh

4. Union Bank of India

• Loan: Up to ₹10 lakh
• Interest: Around 8.4%
• No processing fee
• No security up to ₹7.5 lakh

5. Private Banks & NBFCs (HDFC Credila, Avanse)

• Loan: ₹20–40 lakh
• Interest: 9% to 12%
• Covers everything – fees, laptop, travel
• Can give loan without security

Why choose private banks?

If you want more money or quick approval without security, these are good. But interest is a little high.

Who can get an education loan?

• You must be an Indian citizen
• You must have admission in IIT or any recognized college after IIT JAM
• You need a parent or guardian as co-applicant (they should have income proof)

Documents you need

• Admission letter from college
• Fee structure
• Previous mark sheets
• ID proof and address proof
• Income proof of parents

When do you start paying the loan?

You don’t have to pay immediately. Banks give you moratorium period, which means:

• You start paying after your course + 6 to 12 months
• You can repay in 10 to 15 years

Government schemes that help students

• Padho Pardesh Scheme – For minority students
• Dr. Ambedkar Scheme – For OBC and EBC students
• Central Subsidy Program – For students from low-income households

These schemes help reduce interest on loans.

Quick Comparison Table

Final Tips

• Compare banks before applying
• Check if your bank gives special benefits for IIT students
• Apply early after getting admission letter
• See if you are eligible for government subsidy schemes

Education loan makes life easy. You can focus on your studies instead of money problems. Choose the loan that suits you best and start your M.Sc. journey confidently!