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Education Loan in India - All you Need to Know About

  • 04-Mar-2022
Education Loan in India - All you Need to Know About

Education loan in India 

An education loan is a loan where the student can borrow the amount from Banks, financial institutions, or NBFCs to pay for their education fees. It is also called a student loan. Education loans opt for Higher education and various professional courses. 


Education Loan Calculator 

An Education loan EMI calculator is an understandable online device that helps an applicant to evaluate the EMI (equated Monthly Installments) for an education loan. It gives an exact answer in less than a minute and guides an applicant to make the loan plan straightforward. 

Given below is the information that an applicant needs to enter in the EMI calculator for the personal loan: 

  • The principal loan amounts (in rupees)
  • Interest rate (in percentage)
  • Loan Tenure (in years or months)

The Formula for EMI Calculation: 

EMI = PV×i×[(1+i)n(1+i)n?1] 

Where, PV = Principal loan amount 

                i = Rate of Interest 

                n = No. of monthly installments   


Education Loan Eligibility criteria 

 Eligibility criteria for education loans depend on several factors such as Monthly salary, Age of the borrower, Business income of the co-applicant, Type of course and Nationality, etc.  

  • Age of an Individual- Between 18 to 35 years of age during loan application.
  • The borrower must be pursuing an undergraduate or postgraduate degree or any Diploma.
  • Nationality- An applicant mute be a resident of India.
  • The candidate must have confirmed admission status to an academic institute in India or abroad.
  • Academic records can be proven good.
  • Source of Income – Guardians / Parents
  • The recognized university applied in India or Abroad.
  • Collateral will depend on the income source and the loan amount.

Also read: - Loan EMI calculator online


Documents required for Education loan 

The important documents that a student requires to get an education loan: - 

  • 2 passport-size photographs.
  • Age proof: - Copy of Voter ID Card/ Aadhar card/ Driving license/ Passport.
  • Residence proof: - Copy of Electricity Bill/ Telephone Bill/ Gas Book/ Ration Card/ Bank statements of last 6 months of co-borrower or the students/ Rental agreement.
  • Income proof: - Bank statement of last 6 months of an applicant. ITR of last 2 years. Documents presenting the assets and the liabilities of the Guardian, Parents, or the Co-borrower.
  • Latest salary slips of the Guardian or the Parent.
  • Filled application with signature and attached photograph.
  • Educational certificate: - Copy of Marksheets of class 10th and 12th or any recent educational certificate.
  • Statement of Cost of study or the expense of the course.
  • Admission letter
  • PAN Card and Aadhar Card of the Parent or Guardian and the Student.


Types of education loans in India 

There are two forms of education loan: -  

  1. Domestic Education Loan – Domestic education loan is a loan where students want to pursue education in India so they can apply for this loan.
  2. Abroad Education Loan – Abroad education loan is also known as an Overseas education loan where students want to pursue their education in a foreign institution. Such types of loans include tuition fees, accommodation, and airfare for students.


Lowest Education Loan Interest Rate 

An education loan is given to the students who are willing to apply to meet the needs of their financial needs and carry on with their studies. 

Interest rate 9.75% 
Loan amount Up to 30 lakhs 
Processing fee Nil 


Compare Interest Rate of Education Loan by Banks / NBFCs 

HDFC Bank Ltd. 8.50% 
Punjab National Bank 7.30 % onwards 
Canara Bank 9.30% 
UCO Bank 8.50% 
Federal Bank 10.05% 
Axis Bank 13.70% 
State Bank of India 7.97% 
IDBI Bank 6.90% 
Karur Vysya Bank 10.60% 
Central Bank of India 8.50% 
Bank of Baroda 8.50% 
Karnataka Bank 9.85% 
Avanse  10.50% 
Credila financial services private limited 8.25% 


Education loan Process 

  • An applicant has to apply online for an education loan or visit the banks - Open the website of education loan and fill in the application form and all the necessary details.
  • Respond to the Agents- An agent will get in touch with you soon after applying for the education loan.
  • Get a verification – You will get an email and a call for confirmation or approval from the Banks in less than 48 hours.
  • Affix all the required documents – Compile all the necessary documents which you have to attach with them.

Hence, financeseva allows you to choose and compare the best deal offered by the Banks & financial institutions for education loans in India. 

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