Short answer. Three Indian trusts lend to postgraduate students cheaply. JN Tata Endowment lends up to ₹20 lakh at 2 percent simple interest. KC Mahindra lends up to ₹5 lakh interest free, ₹10 lakh for its top three. Narotam Sekhsaria lends interest free. JN Tata and KC Mahindra want a guarantor, not collateral, and close by April.
Most Indian students fund a master’s abroad with a bank or NBFC education loan at 8 to 14 percent. A handful of Indian trusts offer something far cheaper: a loan scholarship, which is money you repay, but at 2 percent or no interest at all, with no collateral. They are merit based, competitive and small next to the cost of a degree abroad, so they rarely replace a bank loan. What they do well is shrink it.
Every figure here comes from each trust’s own website and FAQs, checked in October 2026. If you are still choosing a lender for the rest, our education loan interest rate comparison covers banks and NBFCs side by side.
The three compared
| JN Tata Endowment | KC Mahindra | Narotam Sekhsaria | |
|---|---|---|---|
| Amount | Up to ₹20 lakh | Up to ₹10 lakh for the top 3, up to ₹5 lakh for others | Not published on its site |
| Interest | 2% simple a year | Interest free | Interest free |
| Collateral | None; a guarantor is required | None; a guarantor is required | Not stated on its site |
| Repayment | Equal instalments from the 3rd to the 7th year after disbursement | Set in the loan agreement | Starts one year after course completion |
| Study | Master’s, PhD or postdoc abroad | Postgraduate study abroad, and now select premier institutions in India | Master’s or PhD at top ranked institutions in India or abroad |
| Age limit | 45 or under | None stated | Under 30 |
| Academic bar | 60% average in your degree | A first class degree | A consistently high academic record |
| Awards a year | Not fixed | At least 50 | Not fixed |
| Last cycle | Applications 5 January to 29 March 2026 | Deadline 30 April 2026 | Closed; interviews followed by an orientation in July 2026 |
What 2 percent actually saves
The difference is easy to underestimate. While ₹10 lakh is fully outstanding, 2 percent simple interest costs ₹20,000 a year. The same ₹10 lakh from a bank at 9.5 percent costs about ₹95,000 a year. An interest free award costs nothing beyond paying it back. Over the years a loan is outstanding, that gap is several lakh rupees, which is why these awards are worth an application even if you already have a bank sanction.
The repayment terms differ too. JN Tata gives you two years before repayment starts and then five equal instalments, so the whole amount is due within seven years of disbursement, sooner than most bank loans. Narotam Sekhsaria starts repayment one year after you finish the course. Before you accept, check the instalment against the salary you expect, because a short repayment window means bigger instalments.
Stacking one with a bank loan
For most students the realistic plan is a loan scholarship for part of the cost and a bank loan for the rest. That changes the bank loan in useful ways. A smaller bank loan can fall under the threshold at which banks ask for collateral, and it lowers the total interest you pay. Run both offers through the loan offer comparison calculator to see the combined cost.
Watch the timing. Bank sanctions often come before these awards are announced, and JN Tata announces in mid July, KC Mahindra interviews in July. Take the bank sanction, and if a loan scholarship comes through, ask the bank to reduce the disbursement rather than paying interest on money you no longer need.
Faz's ruleThe guarantor is the real condition. Line one up before you apply, and make sure they understand their liability equals yours.
None of these trusts asks for property as security. What they ask for instead is a guarantor whose liability is on par with yours, usually a parent, or a spouse or parent in law if you are married. JN Tata allows other relatives, and a non relative only with its prior approval. A guarantor signs up to repay if you do not, so have that conversation at home first. It is the same discussion as choosing a co-applicant for a bank loan, with lower stakes because the amounts are smaller.
How selection works
JN Tata Endowment runs four phases: an online application with your statement of purpose, a preliminary screening, an aptitude test in April, and interviews with subject experts in May and June. The statement of purpose carries considerable weight; the Endowment asks for under 800 words, in your own words, tying your course and university to your background and career plans. Our statement of purpose guide applies directly. You can apply before you have an admission letter and update the Endowment once you do.
KC Mahindra shortlists by email by June and interviews in July. Candidates travelling from outside Mumbai are reimbursed for travel, but not for accommodation. Final year students can apply if they produce their results by the end of June.
Narotam Sekhsaria asks for no documents at the first stage, then runs online video interviews, and selected scholars must attend an orientation in July. Applicants must be Indian nationals living in India and under 30.
When to apply for 2027
All three run once a year, early in the calendar year of your intake. Going by the 2026 cycle, expect JN Tata to open in early January and KC Mahindra to close at the end of April. Narotam Sekhsaria had already closed its 2026 round by the time its scholars met for a July orientation, so watch its site from the start of the year. If you are starting a master’s in August or September 2027, these windows fall exactly when you are finalising admits, so put them in your calendar now. A full list of other awards is in our guide to scholarships for Indian students to study abroad.
The honest closing take
These three trusts will not fund a whole degree abroad. JN Tata goes furthest at ₹20 lakh, and most KC Mahindra awards are ₹5 lakh. But money at 2 percent or at no interest is the cheapest borrowing an Indian student will ever be offered, and every lakh it replaces is a lakh you are not paying 9 or 12 percent on.
The applications are also cheap in time compared with what they can save. A strong statement of purpose, a willing guarantor and a calendar reminder for January are most of what it takes. Apply alongside your bank loan, not instead of it, and let whichever comes through reduce the loan you actually draw.
FAQ
Is the JN Tata Endowment a scholarship or a loan?
A loan scholarship: you repay it, at 2 percent simple interest a year, in equal instalments from the third to the seventh year. Selected scholars may also be eligible for a separate travel grant and gift award from the allied Tata Trusts, based on their own criteria.
Can I get both JN Tata and KC Mahindra?
Neither trust’s published FAQ rules it out, but each assesses your total funding. Disclose every award and loan you hold when you apply, and ask each trust directly before accepting a second award.
Do these cover undergraduate study abroad?
No. All three are for postgraduate study. JN Tata excludes undergraduate degrees, exchange programmes, conferences and distance or online courses, and KC Mahindra excludes undergraduate study, seminars and conferences.
Is there any collateral for the JN Tata loan scholarship?
No collateral is required, but a guarantor is mandatory and the guarantor’s liability is equal to the scholar’s. A parent is the usual guarantor.
Can I apply before I get an admission letter?
Yes, for all three. JN Tata, KC Mahindra and Narotam Sekhsaria accept applications from students still waiting on admission, though the award depends on securing it.
Where these figures come from
- J N Tata Endowment, FAQs and eligibility criteria
- K. C. Mahindra Education Trust, scholarships and grants and 2026 FAQs
- Narotam Sekhsaria Foundation, postgraduate scholarship FAQs
Checked against the sources above in October 2026. The JN Tata FAQ gives 15 March as the closing date while its home page gives 29 March; confirm the current date on the Endowment’s site before you apply.
