8 Best Banks For Loan Against Property For Education In India

(MENAFN- Market Press Release) October 22, 2026 6:55 am - A Loan Against Property can help fund higher education expenses, including tuition fees and accommodation. Compare eight banks based on interest rates, loan amounts, eligibility, repayment tenure, and fees before choosing a suitable option.

Higher education can involve substantial expenses, from tuition fees and accommodation to travel and study materials. When savings or a conventional education loan are insufficient, a Loan Against Property (LAP) can be an alternative financing option. It allows property owners to borrow money by mortgaging eligible residential or commercial property.

Several banks and financial institutions offer property-backed loans that can help meet education expenses, subject to their terms and eligibility criteria. Here are eight lenders to consider when exploring a Loan Against Property for education in India.

1. Federal Bank

Federal Bank offers the Property Power Loan Against Property facility, which allows eligible borrowers to use their property to finance personal expenses, including their child's higher education. The interest rate starts from 8.20% per annum, subject to applicable terms and eligibility. Borrowers can apply for loans of up to?20 crore, with a repayment tenure of up to 15 years.

The facility is available against eligible residential properties, plots, and commercial properties. The sanctioned amount depends on factors such as property valuation, income, and repayment capacity. Federal Bank can be considered by individuals seeking substantial funds for education without liquidating their existing investments.

2. State Bank of India (SBI)

State Bank of India offers a Loan Against Mortgage of Immovable Property for personal expenses, including education. Eligible borrowers can mortgage qualifying residential property to access funds for education fees and other personal requirements.

SBI offers loan amounts based on the property's location, valuation, and the applicant's repayment capacity. The maximum repayment tenure is up to 15 years, subject to eligibility and scheme conditions. Its extensive branch network may also be helpful for borrowers who prefer in-person assistance during the application process.

3. IDBI Bank

IDBI Bank offers a Mortgage Loan that can be used for education and other personal financial requirements. Borrowers can mortgage eligible residential or commercial property to obtain funds.

The bank provides loans of up to?10 crore, while higher amounts may be considered depending on the proposal. The maximum repayment tenure is 15 years, subject to eligibility. Applicants should review the bank's applicable interest rates, processing fees, and property valuation requirements before applying.

4. Axis Bank

Axis Bank offers a Loan Against Property facility for eligible borrowers who need funds for expenses such as education, healthcare, or other financial requirements. The loan amount and repayment terms depend on the applicant's income, credit profile, and property value.

Borrowers should check the applicable loan scheme and confirm that their intended education expenses meet its conditions. Comparing the interest rate, processing charges, and repayment tenure can help determine whether the facility suits their financial requirements.

5. ICICI Home Finance

ICICI Home Finance offers a Loan Against Property facility for personal and business requirements, including education expenses. Eligible applicants can use residential or commercial property as collateral to access funds.

The sanctioned amount and interest rate depend on factors such as income, property type, creditworthiness, and repayment capacity. Applicants should review the repayment schedule and associated charges before deciding whether this financing option is appropriate for their education-related expenses.

6. HDFC Bank

HDFC Bank is another lender worth considering when exploring property-backed financing. Its Loan Against Property options can help eligible borrowers meet financial requirements, subject to the selected scheme's terms.

The loan amount depends on the property's valuation and the applicant's financial profile. Before applying, borrowers should confirm whether education expenses are permitted under the specific facility and compare the interest rate, processing fees, and repayment conditions.

7. Bank of Baroda

Bank of Baroda offers property-backed lending options for eligible applicants. Borrowers considering this bank should review the applicable mortgage loan scheme and confirm whether the intended education expenses qualify under its permitted end-use conditions.

Property eligibility, income, credit history, and repayment capacity can influence the amount sanctioned. Applicants should also compare the applicable interest rate, processing charges, and loan tenure before making a decision.

8. Kotak Mahindra Bank

Kotak Mahindra Bank is another lender to evaluate for property-backed borrowing. Eligible applicants can explore its Loan Against Property offerings to determine whether they meet their education funding needs.

The amount available and repayment terms depend on the selected product, property valuation, income, and credit profile. Borrowers should confirm the permitted use of funds and review the complete borrowing cost before proceeding with an application.

Conclusion

A Loan Against Property can help property owners arrange funds for higher education when other financing options do not meet their requirements. Before choosing a lender, compare interest rates, processing fees, repayment tenure, eligibility criteria, and the amount you can borrow.

Remember that a Loan Against Property is a secured loan. Failure to repay it can put your property at risk. Choose an affordable EMI and confirm that education expenses are permitted under the selected loan scheme before applying.

MENAFN23102026003520003262ID1111854289