How Do Students Apply For An Education Loan?
How Do Students Apply For An Education Loan?
Embedded Files
There are some clear steps involved in getting an education loan. Here is a step-by-step guide to help you understand the process and requirements:
✅ 1. Understand your needs
✅ 1. Understand your needs
Before you apply, find out:
Total tuition fees and living expenses
Duration of the course
Location (India or abroad)
Type of course (undergraduate, postgraduate, vocational, etc.)
✅ 2. Check eligibility
✅ 2. Check eligibility
General eligibility criteria (may vary slightly by lender):
Indian nationality
Admission to a recognized course in India or abroad
Co-applicant with stable income (usually a parent or guardian)
Good academic record
✅ 3. Choose a lender
✅ 3. Choose a lender
You can apply through
Public sector banks (e.g., Canara Bank, SBI Education loan)
Private banks (e.g., HDFC, ICICI)
NBFCs (e.g., Avanse, InCred)
Government schemes (e.g., Vidya Lakshmi Education Loan portal)
International lenders (for studying abroad, like Prodigy Finance)
Compare:
Interest rates (can range from 8% to 14%)
Repayment terms
Processing fees
Moratorium period (repayment holiday + grace during study)
✅ 4. Documents required
✅ 4. Documents required
Here is a standard list:
Student's documents:
Admission letter from the institute
Academic records (10th, 12th, degree certificate)
Entrance exam marks (if applicable)
Identity card and address proof
Co-applicant's (parent/guardian) documents:
PAN card, Aadhaar card
Salary slip or income proof
Bank statement (last 6 months)
IT returns
Additional (if required):
Collateral documents (if more than ₹7.5 lakh usually in India loan is of Rs. 10000)
Passport and Visa (for studies abroad)
✅ 5. Apply for a loan
✅ 5. Apply for a loan
You can apply:
Online through bank/NBFC website or Vidya Lakshmi portal (for multiple options)
Offline by visiting a bank branch
Submit the application form along with the required documents.
✅ 6. Loan Process
✅ 6. Loan Process
The lender will:
Verify the documents
Assess the financial capability of the co-applicant
Approve or disapprove the loan based on eligibility and risk
Processing time: 1-3 weeks (varies)
✅ 7. Loan disbursement
✅ 7. Loan disbursement
Once approved:
The loan is disbursed directly to the educational institution (tuition) and/or the student (living expenses).
You get a sanction letter detailing the terms, interest, EMI, etc.
✅ 8. Repayment
✅ 8. Repayment
Most lenders offer a moratorium period (course period + 6-12 months).
After that, EMIs start.
Loan tenure: 5 to 15 years depending on the amount and policy.
🔑 Tip:
🔑 Tip:
Start the process early, especially for studies abroad.
Apply to multiple lenders if needed and compare offers.
Public banks often offer lower sbi education loan interest rates, but private lenders can be faster and more flexible.
Page updated
Google Sites
Report abuse