Education Loan

The term Education Loan or Student Loan means the advances made by the banks or financial organizations for the purpose of meeting the expenses of higher education of the students.

Further, under this special loan scheme, the praiseworthy and meritorious students of the nation, having excellent educational qualification and academic achievements are offered financial assistance to study in the well-known institutes, both in India and abroad.

Furthermore, most of the Indian banks and financial institutions offer these types of loans to only the deserving candidates at a low interest rate, together with flexible terms and conditions. 

Moreover, it shall be noted that the process of documentation is also kept minimal to allow the students get the loan money within a quick and short time span that, too, without much complexity.

In this blog, we will discuss the concept, procedure, and documents required to apply for education loans.

Eligibility Criteria to Apply for Education Loans

Since the education loans are offered only to brilliant and meritorious students who are incapable to meet their expenses of higher and professional education, so for the basic education loan, eligibility is just the academic excellence and educational achievements of the students. 

In other words, the eligibility criteria of the applicants are evaluated on the basis of their academic excellence and performance as mentioned in the mark sheets of their previous exams.

Further, the crucial education loan eligibility criteria that every candidate needs to fulfil to obtain approval for the education loan are listed out here as follows:

  1. The candidate applying for the education loan should be the resident of India;
  2. He/ she needs to have confirmed admission in any recognised educational institutes, whether in India or abroad;
  3. The age of the respective candidate should fall within the prescribed bracket of 18 to 35 years during the filing of loan application;
  4. He/ she must be undergoing either a graduate/ post-graduate degree or a PG diploma;
  5. The applicant needs to have a secured admission in any college or university affiliated by UGC/ AICTE or by Government etc.;
  6. Students pursuing the full-time courses must have a co-applicant, who can be either their parent/ guardian or spouse/ parent-in-law (if in case of married candidates);

Documents Required to Apply for Education Loan

As mentioned earlier, the documentation process of education loan does not involve any kind of hard-core paperwork. That means the process is easy, simple and can be carried out online as well, without paying regular physical visits to the banks or financial institutions. 

However, it shall be noted that the said process might vary depending on the prescribed criteria by various banks or lending financial organisations. 

Also, the banks and financial institutions being very strict and firm in their terms and conditions, failure to submit the required and mandated documents will lead to rejection. The documents required to apply for Education Loan in India are as follows:

Required Documents

Here is the complete list of the mandatory documents that a college going student needs to provide to the banks or financial institutions while applying for an education loan:

  1. Duly filled and signed loan application form, together with affixed latest photographs;
  2. 2 recent photographs of passport size;
  3. Copy of the exam mark sheets of 10th/ 12th or any latest education certificate;
  4. Comprehensive statement of course expenses or cost of study;
  5. Aadhaar Card and Pan (Permanent Account Number) Card of the student and Parent/ Guardian;

Age Proof

  1. Copy of Aadhaar Card / Voter ID/ Passport/ Driving License of the applicant;
  2. Identity Proof;
  3. Copy of Voter ID/ Aadhaar Card/ Driving License/ Passport of the applicant;

Residence proof

  1. Rental Agreement/ Bank statement of the previous 6 months of the student or co-borrower/ guarantor;
  2. Copy of Ration card/ Gas Book/ Electricity Bill/ Telephone Bill of the student or co-borrower/ guarantor;

Income Proof

  1. Form 16 or the most recent salary slips of the parent/ guardian/ co-borrower;
  2. Bank statements of the last 6 months of the borrower or an updated passbook of bank;
  3. Updated ITR (Income Tax Return, together with income computation) of the last 2 financial years or the IT assessment order of the last 2 years of parent/ co-borrower/ guardian;
  4. Documents relating to the assets and liabilities of the parent/ co-borrower/ guardian;

How to Improve Your Eligibility for Education Loan in India?

In order to make certain that the monetary assistances reach the worthy and deserving students, banks and financial institutions are very strict and stern in assessing the eligibility criteria of the candidates. 

Further, the overall academic excellence and performance of the students, their future professional course of education and the status of current admission are the elementary parameters that are being evaluated before giving an education loan approval. 

Therefore, the working on the following parameters will improve the eligibility and process to apply for education loan in India:

  1. Scoring high grades/ ranking/ marks in the qualifying exams;
  2. Displaying good and meritorious academic record;
  3. Getting admission in any reputed/ top-tier institute or university, whether in India or Abroad;
  4. Strong financial background of parents/ guardians/ co-borrower;
  5. Showing good prospects for the future employment and income generation;

Procedure to Check Eligibility for Education Loan

The steps involved in the process to check the eligibility for education loan can be summarised as:

  1. Visit the official website of the issuer bank or financial institution;
  2. Now, go to the “Loan” section and click on “Education Loan” tab;
  3. Consecutively one can also choose the “Apply Now” tab present on the portal to get re-directed straightaway to the education loan page;
  4. Next, fill up the given application form with all the required particulars and course details, such as the location, course level, course of study, country of study, name of the college or university, anticipated course expenses, and the course duration, together with the details of the respective co-borrower and collateral security;
  5. Once dully filled, accept the terms and conditions of the privacy policy of the respective portal and then, click on “Search for Loans” tab;
  6. Based on the provided particulars, the website will then show the suitable loan offers and best deals;
  7. One can choose the most advantageous and beneficial offer from the provided options;
  8.  After that, apply for the same through the said portal again;
  9. Meanwhile the process of applying for education loan is so easy and convenient, and the terms are flexible, that it has opened up several ways for the deserving and meritorious students to choose for this loan and satisfy their wishes of pursuing higher studies in their chosen institutes, whether in India and abroad.

Whether a candidate is a student, or a working professional, if he/ she successfully fulfils the eligibility criteria mandated by the banks and financial institutions, he/ she will be eligible to get an education loan to cover up the expenses of his/ her future course of study.

Courses Eligible for Getting Educational Loans

Banks and Financial Institutions offer education loans for students to study in almost anything, provided that the said course and the institution or university are well accredited by the concerned authorities and are of good repute. Further, the students can avail of educational loans for the courses as follows:

  1. Undergraduate degrees/ diplomas and special courses;
  2. Postgraduate degrees/ diplomas and special courses;
  3. PhDs and Doctoral Programmes;

Further, it shall be noted that banks and financial institutions also provide loans for specialized courses, training, and diplomas courses. However, not all banks or financial institutions will extend finance and assistance for these courses, but a student can do research and find out a bank that will provide him/ her a loan particularly if there is a prospect of a job, or an improvement in the current employment. Some of the courses included are as follows:

  1. Computer certificate course;
  2. Engineering diploma;
  3. Certificate courses from ITI;
  4. Data entry operator course;
  5. Nursing/ Teacher Training certificate courses and B.Ed;
  6. Agriculture diploma;
  7. Veterinary diploma;
  8. Any job-oriented diploma or certificate course;
  9. Degree or diplomas for courses of aeronautics, pilot training, shipping held by the recognized regulatory bodies for the objective of employment in India or abroad;
  10. Vocational courses that are run either by a government organization or any department;
  11. Courses that are run by State Skill Missions (SSM), State Skill Corporations (SSC), or National Skill Development Corporation (NSDC);

Institutions Eligible for Getting Educational Loans

Banks will also need to consider the institution a candidate have selected to pursue his/ her studies. That means they will not provide loan to just any other course and any college or university. 

Further, the bank requires to make sure that the said applicant will be able to complete his/ her course and get a good and reputable job when they are providing him/ her a loan. 

Also, most of the banks have a list and comprehensive list of reputable and pre-approved universities and colleges. 

In the same manner, they also have a complete list of the blacklisted universities for which they will straight away reject the loan application.

In India:

Some of the recognised universities or colleges that are preferred for further studies in India are listed below:

  1. Universities or colleges recognised by the UGC, Government, AICTE, AIBMS, IMCR, etc;
  2. Approved polytechnic institutions;
  3. Reputed foreign schools/ universities located in India;


  1. Universities of a good repute and standing;
  2. CPA in USA, CIMA- London, etc;


In a nutshell, educational loans is a recognised sector which is duly promoted, as it provides students the opportunity and chance to study further. Also, it improves the growth and development of both the citizens and the country. 

Further, educational loans work as an investment into the future world, so it is crucial to do a detailed research by taking adequate time. 

Also, it shall be noted that both government and banks offer subsidies, benefits, and lower interest rates to encourage education for all.

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