An education loan is a type of financial assistance provided by banks and financial institutions to help students cover the cost of their higher education. This loan typically includes expenses such as tuition fees, accommodation, books, travel, and other related costs. Education loans are available for studies in India as well as abroad, and can be taken by the student or jointly with a parent or guardian as a co-applicant.

Education Loan - Features

• Pre Admission Sanction
• Maximum Loan Repayment Tenure
• Tax Benefit U/s 80 (E)

Education Loan - Benefits

1. Avail high value loans

   Before applying for the loan, prepare a business plan, know your credit score, decide the loan amount, do some market research on available business loan options, and keep the documents ready.

2. Enjoy attractive interest rates

   Proof of address & photo identity proof of the promoters, business proof, income proof, partnership deed for partnership firm, articles of association, memorandum of association, board resolution, PAN card, etc.

3. Pre Admission Sanction

   Applicants should be aged between 21 to 65 years, having business vintage of a minimum of 3 years. The minimum business turnover and a minimum annual turnover as per the ITR will be required. The business should be profit-making for at least the last 1 year.

Features and Benefits of our Education Loan

• Flexible Financing: Cover tuition fees, living costs, and more.
• Wide Course Range: Available for various courses and institutions.
• Affordable Rates: Competitive interest rates for cost-effective borrowing.
• Moratorium Period: Repayment starts after course completion.
• Collateral Options: Choose between Collateral and Non-Collateral Loans.
• Co-borrower Support: Parents can enhance eligibility as co-borrowers.
• Tax Benefits: Possible tax deductions on interest repayment.
• Convenient Application: Apply online for a hassle-free experience.
• Direct Disbursement: Funds disbursed directly to the institution.
• Tailored Repayment: Flexible repayment options, including EMIs.
• Inclusive Eligibility: Open to Indian residents, NRIs, and some foreign nationals.
• Future Studies Covered: Loans might include funding for further courses.
• Added Value: Some lenders offer insurance and career support.

Eligibility Criteria

Education loan eligibility criteria can vary depending on the country of study, the lender, and the type of loan you're applying for. However in a general overview the factors that often influence education loan eligibility are:

Age: Most lenders have a minimum and maximum age requirement for loan applicants. Typically, you need to be of legal age (18 or older) to apply for a loan.

Course/Program Eligibility: Education loans are often tied to specific educational programs or courses. Lenders may have a list of eligible institutions and programs that qualify for loans.

Admission Offer: Many lenders require proof of admission to an eligible educational institution before approving a loan application.

Academic Performance: Some lenders might consider your academic performance as part of the eligibility criteria. This could include factors like your high school or previous education grades.

Co-borrower or Guarantor: If you have limited credit history or income, some lenders might require a co-borrower or guarantor (usually a parent or guardian) who will share the responsibility of repaying the loan if you are unable to do so.

Credit History: Student's as well as their co-borrower/guarantor's credit history and credit score can play a significant role in determining your eligibility for an education loan. A good credit history can improve your chances of approval and may lead to more favorable loan terms.

Income/Financial Ability: Some lenders may consider your ability to repay the loan based on your income or your co-borrower's income.

Loan Amount: The loan amount you're requesting in relation to the cost of the program might affect your eligibility. Lenders may have specific limits on the loan amount they are willing to offer.

Collateral or Security: In some cases, lenders might require collateral or security against the loan, especially for larger loan amounts. This could be in the form of property, investments, or other valuable assets.

Documentation: You will likely need to provide various documents as part of your loan application, such as proof of identity, proof of admission, income documents, and more.

Documents Required to Apply for Education Loan

You will likely need to provide various documents as part of your loan application, such as proof of identity, proof of admission, income documents, and more for both Student as well as the Guarantor or co-borrower.

Student-Applicant:

• Proof of Identity (Any one): Pan/Adhar/Passports etc

• Proof of Residence/ Address (Any one): Passport mandatory in case of Studies Abroad

• Academic Records: 10th Result & 12th Result, Graduation Result- Semester-wise (if applicable) Entrance Exam Result through which admission is being taken (e.g. CAT, CMAT, JEE, NEET, CET, GMAT, GRE, TOEFL, etc.)

• Proof of admission: Offer Letter or Admission Letter from the Institution. Conditional admission letter may be considered in case of studies abroad. Statement of cost of study/ Schedule of expenses

• College / Course prospectus (if available)

• 2 passport-size photographs

• A/C statement for last 1 year in case of any previous loan from other Banks/Lenders

• Education Loan Documents for Co-Applicant/ Financial Co-Applicant/ Guarantor

II. Co-applicant/Guarantor:

• Proof of Identity (Any one)

• Proof of Residence/ Address (Any one)

• 2 passport-size photographs

• A/C statement for last 1 year in case of any previous loan from other Banks/Lenders

III. Income Proof for Salaried Co-applicant/ Guarantor:

• Salary Slip or Salary Certificate

• Copy of Form 16 and IT Returns acknowledged by IT Dept.

• Bank account statement for last 6 months (of Salary Account)

IV. Income Proof for Self-employed Co-applicant/ Guarantor:

• Business address proof (If applicable)

• IT Returns acknowledged by IT Dept., TDS Certificate (Form 16A, if applicable)

• Bank account statement for last 6 months

Fees and Charges for Personal Loan

The fees and charges of personal loans usually vary from lender to lender and from case to case. The aforementioned table will give you a fair idea of the fees and charges related to personal loans:

Personal Loan FAQs