Education Loan

Education Loan for Commercial Pilot License

Education Loan for Commercial Pilot License

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Read about the different education loan options for pilot training. Learn about education loan options, eligibility criteria, documents required, and scholarships available.Education Loan for Commercial Pilot License

GyanDhan
Ananya Ghai
Updated on:  09 Sep 2024 | 1.77K | 21  min read

Many people aspire to be commercial pilots, but the costs of commercial pilot training can be prohibitively expensive. A pilot training program generally costs between INR 30 Lakh to INR 50 Lakh annually, depending on the institute and country. Fortunately, several education loan options are available to help aspiring pilots finance their training. Keep reading this blog to understand the different education loan options available for commercial pilot license training programs along with top institutes in India and abroad.

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Education Loan for Pilot Training in India

If you want to be a pilot in India, you may face the daunting task of paying for your training. The average cost of obtaining a commercial pilot license from a DGCA-accredited flight training school is between INR 35 and INR 40 Lakh. However, with an education loan for commercial pilot training in India, you can pursue your dreams without worrying about finances.

 

More than 90% of aspiring pilots in India rely on education loans to fund their training. With the increasing global demand for pilots, now is an excellent time to take advantage of this financial opportunity. Pilot training loans make it easier to realize your dream of flying. You can borrow up to INR 1.5 crores. They allow you to repay in a way that is convenient for you, assisting you in your goal of becoming a pilot.

 

Accepted collateral includes liquid security such as a life insurance corporation policy, a fixed deposit, government bonds, or immovable property such as non-agricultural land, agricultural land, a house, or a flat.

Feature Description

Loan Amount

INR 1.5 Cr

Interest Rate 

Starting from @ 9.50%

Moratorium Period

Course Duration + 12 Months

Repayment Tenure

15 Years

Margin Money

5% - 15%

Accepted Co-Applicant

Parents, Parents in law, Siblings, Spouse

 

Check loan eligibility for study abroad

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Top 10 Pilot Training Institutes in India

Below are listed the top 10 institutes for pilot training courses in India. 

Institute  Annual Fee Structure

Adventure Flight Education Private Limited, Bangalore

INR 32.8 Lakh

Indira Gandhi Rashtriya Uran Akademi (IGRUA)

INR 45 Lakh

Madhya Pradesh Flying Club (MPFC) 

INR 35.4 Lakh

National Flying Training Institute (NFTI)

INR 36.4 Lakh

Ahmedabad Aviation & Aeronautics Ltd. (AAA)

INR 23.3 Lakh

Bombay Flying Club

INR 36.9 Lakh

Rajiv Gandhi Aviation Academy

INR 20 Lakh

Government Flying Training School 

INR 25 to 35 Lakh

OFAA – Orient Flights Aviation Academy

INR 38.5 Lakh

Indian Aviation Academy

INR 15 to 20 Lakh

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Eligibility Criteria for Education Loan for Pilot Training in India

To enroll in pilot training in India, applicants must fulfill the following eligibility criteria - 

  • list items Candidates must be at least 17 years old to begin training, and 21 years old to apply for a commercial pilot license.
  • list items Pilots must meet the DGCA's minimum medical standards, which include good eyesight, hearing, and physical health.
  • list items To pursue pilot training in India, aspiring pilots must have completed Class XII in any subject, including English, Maths, and Physics.
  • list items All aviation communications are conducted in English, so pilots must be fluent in speaking, reading, and writing.
  • list items Obtaining a pilot's license is an expensive process, and aspiring pilots must have enough money to cover the costs of flight training, exams, and other associated expenses.
  • list items Becoming a pilot requires a significant amount of time, effort, and dedication, and aspiring pilots must have a genuine interest in aviation and a commitment to pursuing their dreams.

 

Pursuing pilot training in India involves a combination of physical and mental excellence, education, financial resources, and a strong passion for aviation. Before embarking on this journey, aspiring pilots must carefully consider the following prerequisites.

 

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Education Loan for Pilot Training Abroad 

The average cost of pilot training abroad in countries such as the United States, the United Kingdom, Canada, and Australia ranges between INR 40 Lakh and INR 80 Lakh, but with education loans, aspiring pilots can borrow up to INR 1.5 cr to cover their training costs. Education loans for pilot training abroad are a wise financial decision for aspiring pilots because they offer flexible repayment options, direct loan disbursement to the training academy, and the ability to study at top aviation schools around the world.

Feature Description

Loan Amount

INR 1.5 Cr

Interest Rate 

Starting from @ 10.9%

Moratorium Period

Course Duration + 12 Months

Repayment Tenure

15 Years

Margin Money

5% - 15%

Collateral Value 

1.33 x Loan Amount

Accepted Co-Applicant

Parents, Parents in law, Siblings, Spouse

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Top 10 Pilot Training Institutes Abroad 

Below are listed the top 10 institutes from across the world to study pilot training. 

Institute  Average Annual Fee Structure

Aerosim Flight Academy

INR 49.96 Lakh - INR 74.94 Lakh

CTC Aviation

INR 63.14 Lakh - INR 84.18 Lakh

Singapore Flying College

INR 43.76 Lakh - INR 93.77 Lakh

Olympus Aviation Academy

INR 45.1 Lakh - INR 90.18 Lakh

Ardmore Flying School

INR 31 Lakh

Western Michigan University Aviation College

INR 7 Lakh - INR 18 Lakh

Ohio State University Aviation College

INR 30 Lakh - INR 34 Lakh

Oxford Aviation Academy

INR 19.5L - INR 20 Lakh

University of New South Wales Aviation

INR 29.30 Lakh 

United States Air Force Academy 

No monetary cost. Pilots have to serve in the U.S. Air Force or Space Force. 

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Top Education Loan Lenders for Pilot Training

To help you choose the right education loan for your CPL, here’s a comparison of major lenders and their education loan options.

Lender  Maximum Loan Amount  Rate of Interest Repayment During Course

Bank of Baroda

Up to INR 1.5 Cr

8.55% - 10.55%

Nil

IDBI Bank

Up to INR 30 Lakh

10.60% - 10.10%

Nil

Axis Bank

Up to INR 1.5 Cr

10.5% - 11.5%

Simple Interest

IDFC First Bank

Up to INR 50 Lakh

11% - 11.5%

EMI

Avanse

Up to INR 50 Lakh

10.5% - 11%

Simple Interest

Auxilo

Up to INR 50 Lakh

11.5% - 12.5%

EMI

HDFC Credila

Up to INR 50 Lakh

10.25% - 10.75%

EMI

TATA Capital 

Up to INR 50 Lakh

12% - 12.5%

EMI

 

To help make your decision easier when choosing the best education loan for a CPL, we will discuss the two most prominent lenders: BOB and Tata Capital. These two lenders are known for offering education loans specifically for pilot training, providing attractive loan amounts, competitive interest rates, and flexible repayment options.

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Bank of Baroda Education Loan for CPL

The Bank of Baroda provides aspiring pilots with a loan amount of up to INR 1.5 crore, which covers the significant costs associated with CPL training. The interest rate on these loans ranges from 8.55% to 10.55%, making BOB one of the more affordable lenders for CPL aspirants. BOB covers 100% of the expenses, meaning that it covers all the expenses related to this course. Additionally, during the moratorium period, students also enjoy a full deferral on repayments, meaning they won’t have to start paying back the loan until after the completion of their course.

 

Eligibility Criteria

  • list items Only applicable for Master's or Postgraduate Diploma courses.
  • list items Certificate and Undergraduate Diploma courses are not eligible.
  • list items Suitable for advanced aviation-related degrees like Master's in Aeronautical Engineering or similar programs.
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Tata Capital Education Loan for CPL

Tata Capital offers an education loan of up to INR 50 lakh for students aiming to complete their CPL training. The interest rate for Tata Capital loans ranges from 12% to 12.5%. Tata Capital can finance the student’s entire course cost through the loan. Repayments during the moratorium period are structured as Equated Monthly Installments (EMIs), which means students must start paying a fixed amount each month even during their studies.

 

Eligibility Criteria:

  • list items Open to a wide range of courses, including:
  • list items
    Certificate programs.
  • list items
    Diploma programs.
  • list items
    Degree courses.
  • list items Suitable for students pursuing diverse aviation-related training options.

 

EMI calculator

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Important Factors to Consider Choosing an Education Loan for CPL

When choosing an education loan lender applicants must consider the following factors - 

  • list items Loan to Value Ratio: Lenders such as HDFC Credila and Avanse, finance up to 100% of the expenses, which can help cover additional expenses like living costs, travel, and study material.
  • list items Moratorium Period: Choosing a lender with a full moratorium can ease financial pressure during training, but this may result in a slightly higher total interest payable after the course. Generally, lenders offer a moratorium period of course period plus 12 months. 
  • list items Collateral Requirements: BOB and Tata Capital, like most banks, require collateral for higher loan amounts. If you do not have substantial assets to pledge, considering lenders with lower collateral requirements might be essential.
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How to Apply for a Commercial Pilot License (CPL) Education Loan?

To apply for a CPL Education Loan, applicants need to follow the steps mentioned below -

 

Step 1 - Check your education loan eligibility.

Step 2 - Complete the application form

Step 3 - Submit the required documents

Step 4 - The lender will verify your documents and approve or deny your application.

Step 5 - The lender will provide you with the sanction letter and disburse the loan amount. 

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Documents Required for Education Loan for Pilot Training

Documents required for pilot training are different for public and private banks or financial institutions in India. Some of the commonly required documents are:

  • list items Application form and education loan form filled out through the lender's platform
  • list items KYC details of the applicant and co-applicant/guarantor
  • list items Proof of identity like a PAN card or passport
  • list items Address proof like Aadhar card, passport, electricity bill, etc.
  • list items Bank account statements or salary slips for the last 6 months
  • list items Proof of admission in the pilot training course
  • list items Proof of assets and liabilities
  • list items Income documents for co-applicants like Form 16, salary slips, income tax returns, etc.
  • list items Other documents like affidavits, declarations, previous loan statements, etc.
  • list items Collateral documents, if required

 

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Scholarships Available for Pilot Training

The cost of pursuing courses in aviation comes with a high cost. To cater to these high costs education loans and scholarships are the best possible option.

 

Below are some scholarships available for commercial pilot training courses -

 

Choosing the right lender for your Commercial Pilot License loan depends on several factors, including interest rates, moratorium periods, and collateral requirements. Both Bank of Baroda and Tata Capital offer competitive loan options, but understanding the fine print is essential for making the best decision. If you are wondering how to choose the best lender for your education abroad then connect with GyanDhan today. Our team of experts will carefully evaluate your profile and compare different lenders for you. Further, you can explore these options carefully and pick the one that aligns with your financial situation and educational goals. Check your loan eligibility to start now.

 

Scholarships

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Frequently Asked Questions

Can I get an education loan for a CPL course?
 

Yes, you can get an education loan for a CPL course. Many banks and financial institutions in India offer loans specifically for pilot training. These loans typically cover tuition fees, flying hours, and other related costs. Banks like Bank of Baroda, IDBI, Axis Bank, and Tata Capital offer education loans for CPL courses, with varying loan amounts and interest rates.n 

Is there any scholarship for commercial pilot training?
 

Yes, there are some scholarships available for commercial pilot training, though they are limited. Some aviation academies and government organizations offer merit-based or need-based scholarships for aspiring pilots. Indira Gandhi Institute of Aeronautics (IGIA) offers merit-based scholarships to high-performing students. Rajiv Gandhi Aviation Academy offers partial scholarships to deserving candidates. Additionally, some international aviation scholarships are available if you're pursuing training abroad, such as the Captain Chris Wilson Scholarship and the Air League Trust Flying Scholarship.

Can you get student loans for pilot training in India?
 

Yes, you can get student loans for pilot training in India from various banks and NBFCs. Education loans for CPL are available from lenders such as Bank of Baroda, Axis Bank, IDBI, Tata Capital, Avanse, and Credila. These loans cover course fees, flight hours, and even living expenses, depending on the lender and loan amount. Be sure to check the lender's eligibility criteria and repayment terms before applying.

Can I get a 50 Lakh education loan for CPL?
 

Yes, you can get a ₹50 lakh education loan for CPL from several lenders in India. Tata Capital and Avanse offer loans up to ₹50 lakh for CPL courses. IDFC First Bank, Credila, and AUXILO also provide loans in the range of ₹50 lakh with varying interest rates. However, keep in mind that loan approval may depend on factors such as collateral, the co-applicant’s income, and the recognition of the aviation school. Some lenders may also finance beyond ₹50 lakh, such as Bank of Baroda, which offers loans up to ₹1.5 crore for CPL training.

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