Securing a Loan for Pilot Training: Your Comprehensive Guide

Aviation courses, especially those that aim to grant a commercial pilot license (CPL), are not your typical educational pursuits. The cost can range from RS. 80 to 90 lakhs. This financial burden can be a significant challenge, but there are options available to help finance your dream. This guide will walk you through the process of securing a loan for pilot training, including the steps, eligibility criteria, and the banks that can assist you.

Understanding the Cost and Financial Options

Flying dreams don't come cheap. The Indigo Cadet training program, for instance, carries a hefty fee of 90 lakhs. Private banks and non-banking financial companies (NBFCs) can provide some unsecured education loans, although the maximum limits are often upto 40 lakhs from private banks and 60 lakhs from NBFCs. While these amounts might cover part of the cost, you may still need to consider other sources of funding, such as public banks, which offer secured education loans at a higher limit.

Public Bank Loans for Pilot Training

The safest bet for financing your aviation course is through public banks. They can offer education loans with a collateral for amounts above 7.5 lakhs, up to a maximum of 1.5 crores. This is contingent on the value of the collateral you can provide. The accepted collateral includes:

Immovable property, such as a house, flat, or non-agricultural land Liquid security, which consists of fixed deposits, insurance policies, term insurance, and government bonds

It's important to consider the total cost and your ability to secure the necessary collateral. If you can arrange at least 50 lakhs of the amount, then applying for the program makes more sense. Otherwise, the financial burden might be too weighty.

Additional Considerations and Guidance

The Reserve Bank of India (RBI) guidelines do include 'pilot training' under the education loan ceiling, which is currently set at 20 lakhs. However, banks may lend above this ceiling on a course-by-course basis. This means that while the RBI sets a limit, banks have the discretion to decide whether to provide a higher loan amount based on the specific course and the borrower's eligibility.

If you're serious about securing a loan for your aviation course, it's advisable to explore your options thoroughly. Public banks, such as SBI, Canara Bank, and PNB, are known to offer these loans. You should provide collateral equivalent to the loan amount and be prepared to undergo a thorough vetting process.

For further enlightenment, you can watch the 36th episode of the LoanFlix series by WeMakeScholars on YouTube. This series provides valuable insights into education loans, and the episode on aviation courses is particularly informative.

Conclusion

Becoming a pilot is both a passion and a financial commitment. While loans can help bridge the gap, it's essential to plan carefully and ensure you can secure the necessary collateral. With the right approach, you can turn your passion into a reality.

Remember, your only safe bet for securing the required loan amount for a pilot training program is through public banks, who can offer education loans with collateral.