Education Loans Eligibility

Check your Eligibility and Apply for Education loans in India..

Education Loan Eligibility

Getting 90% marks for admission in post graduate courses is the one big task but then it can get difficult to buy a computer with the college fees and other expenditure of higher education. But today, help is near at hand. Education loans are easily available from many banks and financial institution facilitating many students to pay for their higher education.

Students can seek education loans for pay graduation, post-graduation and professional courses from government approved institutes. The educational loan not only covers college, school fees, hostel fee, books charges, library charges, purchase of computers but also covers travels expenses for international education.

Determining a loan amount:

The maximum amount of educational loan provided for studying in India is around 10lacs to 15lacs and for education through foreign universities, banks provide up to Rs 20lakh.

The loan amount is decided according to the student’s course type and the family’s annual income. Many banks provide loans with lower interest rate to female students.


The eligibility criteria include Indian nationality, age, course period etc. The age limit for students is between 16 to 35 years.


Repayment of the loan does not have to be made immediately. Students can begin repaying their loan after course completion. The repayment period could be anywhere between 5 – 7 years post completion of course. In case of failure to complete the course, he can seek a 2 years extension to complete the course.

Interest & Fees:

Interest rates vary based on the loan amount and the type of course. It is generally somewhere between 8 % and 15 %. Banks and financial institutes charge a processing fee which can be 0.5 % to 2.5 % for processing the loan.

Guarantor or Security:

A third party guarantor or security amount is required depending on the loan amount. A co-applicant is the third party guarantor such as parent, spouse, siblings, in-laws or any other close relative. Loans below Rs 4 lakh do not require a security token, but for a loan amount more than Rs. 4lakh, a bank would require a security token to the effect of the house property, deposits etc.

Documents required:

Student will be required to provide identity proof, age proof and address proof. He/she is also required to submit co applicant’s document which includes relationship proof, address proof, income document. He/she is also required to submit an admission letter with a fee structure. In case of foreign bound student, they need to submit Visa approval papers, Travel papers, GMAT / GRE Score etc.


When you plan for education loan, try not to base your loan on just lower interest rates. Traditional banks may provide low interest loan but processing period could be long. But private institutes can make the loan available very quickly. Hence, look for the banks which give you loan sanction letter before your visa approval. Otherwise the whole purpose of taking a loan is lost.

To quote: ”Innovation in education loan & services is the need of the hour. Many talented Indian students (& their parents) find it challenging to meet the standard requirements of education loan. Understanding changing needs and customizing products is the only way forward for improving services in Education loan sector.”