Use what you've already paid
Application fees, deposits and the first semester paid from savings can count towards your margin.
Margin money
Margin Money in Education Loans: How Much You Pay
Margin money is the share of the cost your family pays from its own funds; the bank finances the rest. It's a common surprise for families who expected the loan to cover everything.
- Nil up to ₹4 lakh
- 15% abroad above ₹4 lakh at many banks
- Often nil at NBFCs
- Scholarships can count
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Plan your margin money
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Quick answer
Margin Money in Education Loans: How Much You Pay
Under the IBA model education loan scheme, which many public banks follow, there is no margin up to ₹4 lakh, and 15% margin for studies abroad above ₹4 lakh (5% in India). So on a ₹60 lakh cost, you'd pay about ₹9 lakh yourself. Many NBFCs and some private banks fund 100% of the cost of attendance without margin money.
Ask on WhatsAppUpdated · Reviewed by the Visa Edu Loans loan & visa desk
Official sources: IBA Model Education Loan Scheme (via your bank)
Margin money at a glance
- Up to ₹4 lakh
- No margin
- Above ₹4 lakh, studies abroad
- 15% (IBA model scheme; bank policies vary)
- Above ₹4 lakh, studies in India
- 5%
- NBFCs and some private banks
- Often 0% — up to 100% of cost of attendance
- What counts
- Your savings, scholarships and fee already paid
Examples
Margin money on common loan sizes (15%)
Planning
How to plan your margin money
Count scholarships
A tuition waiver or scholarship reduces the cost and can cover the margin.
Pay it in stages
Banks usually take margin proportionally with each disbursement, not all upfront.
Mix lenders
If the margin is hard to arrange, an NBFC loan with 100% funding may suit better, at a higher rate.
FAQs
Frequently asked questions
Still have a question?
Ask a counsellor directly — we reply on WhatsApp during working hours (Mon–Sat, 9 AM–6 PM IST).
Yes, many NBFCs and some private banks fund 100% of the cost. Public banks usually apply margin above ₹4 lakh.
Usually proportionally with each disbursement: when the bank pays a semester's fee, you pay your share of it.
Yes. Your margin savings plus the loan sanction together form your proof of funds.
Explore
Keep exploring
Read next
Related pages
Loan guides
More education loan guides
- How Much Education Loan Can I Get to Study Abroad?
- Is a Co-Applicant Mandatory for an Education Loan?
- Education Loan Without a Co-Applicant for Abroad Studies
- Education Loan Interest Rates for Abroad Studies
- Education Loan Tax Benefit: Section 80E and Section 129
- Education Loan Moratorium Period Explained
- Education Loan Documents List for Abroad Studies
- Education Loan Process for Abroad Studies
- Education Loan Disbursement Process
- All loan guides
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