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Education Loan @ 9.75% Onwards

Your dream of higher studies is much more closer to you now, Get education loan at an attractive rate of interest with flexible repayment facility.
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Education Loan: Online AppLy FoR EduCation Loan @ 9.75%
Bank Name Interest Rate Range (%) Repayment Period Maximum Loan (Lacs) Prepayment Charge
Tata Capital Financial Services Limited
10.99% onwards
240
Up to 30 Lakh
Up to 2.75% of loan amount + tax
Punjab National Bank
7.30% onwards
240
Up to 15 Lakhs
1%
HDFC Bank Ltd
For preferential rates contact HDFC
240
Max Apr
Up to 1.5% of loan amount + tax
Bank of Baroda
8.25% - 10.00%
240
Up to 4 Lakh and above
1% of loan amount up to Rs.10,000
State Bank of India
7.97% - 10.05%
360
Above Rs. 20 Lakh
Rs.10,000 + tax
Axis Bank Ltd.
13.70% - 15.20%
240
Up to 7.5 Lakh
Nil to Rs.15,000 + tax
Avanse
10.50% - 11.50%
84
50
Bank Name Key Features
Tata Capital Financial Services Limited

10.99% onwards

Punjab National Bank

7.30% onwards

HDFC Bank Ltd

For preferential rates contact HDFC

Bank of Baroda

8.25% - 10.00%

State Bank of India

7.97% - 10.05%

Axis Bank Ltd.

13.70% - 15.20%

Avanse

10.50% - 11.50%

₹ 10L
₹ 50L
₹ 1C
₹ 1.5C
₹ 2C
₹ 2.5C
₹ 3C
%
1%
5%
10%
15%
20%
25%
30%
1
10
20
30
40
50

Loan EMI

Total Interest

Total Payment

Eligibility Criteria

What you mean by Education Loan Eligibility Criteria?

If you are looking for your higher studies in India or aboard, but don’t have sufficient money in hand. Don’t worry you can apply for an education loan, there are multiple banks & NBFs before that check education loan eligibility criteria in India & make sure you carry mandatory documents with you to avoid any kind of loan application rejection.

Education Loan Eligibility Criteria

Usually, Education Loan Eligibility Criteria depends on various factors like age of applicant, monthly salary or business income of co-applicant, course type & residency..etc.

  • • Age Limit of Individuals – 18 to 35 years of age
  • • The Applicant must be undergoing a graduate or post graduate degree or diploma
  • • CFor obtaining Student Loan if the applicant wanted to pursue full-time then he / she needed to add their working parents or guardian as a Co-applicant
  • • Nationality - Resident of Indian

Education Loan Eligible Course: -

For within India studies below mentioned course are eligible to get loan: -

  • • Regular Degree or Diploma Course that should be approved by Directory General of Shipping, Indian Nursing Council, Civil Aviation or any regular body.
  • • For professional types of course – CA, ICWA, CS, CFA , Medical, Law, Dental Management, Veterinary, Engineering & computer science.
  • • For Post-Graduation – PH. D & Masters Course from accredited institutions.
  • • Other Degree & Diploma by universities/colleges approved by UGC, Govt / AICTE / AIBMS / ICMR, etc.

For Abroad studies below mentioned course are eligible to get loan: -

  • • Graduation & Post-Graduation from reputed university.
  • • Specific course type for Post – Graduation like MCA, MBA & MS.
  • • Other Degree & Diploma course must be recognized by competent regulatory bodies.

Note: - Maximum Loan Amount for obtaining Education Loan/Student Loan for studies within India can avail 15 and for abroad studies you can avail the loan amount of 25 lakhs as maximum.

What are the factors generally affecting Education Loan Eligibility Criteria?

There are Top 5 factors that generally affects Education Loan Eligibility Criteria as given below: -

Applicant Citizenship: - The main factor that affect the eligibility criteria is applicant citizenship that from which country he/she belongs to if not from India, then they are unable to get loan. Only resident of Indian applicant can apply & get a loan.

Applicant Age: - Usually, applicant age matters when he/she apply for education loan / student loan. Applicant should not be below 18 years of age & above 35 years of age.

University & Institute: - Another factor that affect education loan eligibility criteria is university & Institute from which the applicant is chosen to study. It issignificant to choose a reputed & accredited educational board to avail educationloan. Because it's asked by Bank & NBFCs to provide admission letter issued by university & Institute.

Parents or Guardian Income: - You are required to show proof of monthly income of your co-applicant whomsoever you are adding in your loan application. Lenders will check that do you have a stable income. If not, then your chances of getting loan lower.

Applicant Academic History: -This is done to ensure that you have enough potential to repay your principal loan amount within a specific period as allocated as tenure by showing your previous academic performance level. You will get higher salary package after the completion of course or degree. If your Previous academic performance is below to average ratio, then it's likely that your loan application might reject.

What are the ways to increase Education Loan eligibility?

To increase Education Loan eligibility, you need to consider Top 3 points as given below, this will aid you in increasing your eligibility level.

Excellence Academic Records: - Lenders usually want to know your previous academic records to ensure you have capacity to complete your degree or diploma with good grades that would help you in getting better placement with good salary to repay the loan amount within the specified tenure period. It will be possible only when you obtain excellence academic records.

Getting Seats in reputed university or institute: - When you passed your 12 th or Graduation with good grades, then only you will be eligible to get seats in reputed university or institute. It's one of the best ways to increase education loan eligibility.

Stable Income of parents or Guardians: -Most of the student don’t prefer to do job until they finish their final dreamed qualifications. Therefore, bank & NBFC’s offer this feature to add your parents or guardians as a co-applicant while applying for loan. To make the lender confident that you will pay back the loan amount without any difficulty, thus having a stable income will increase your eligibility.

Documents Required

  • Individual
  • Prop Firm
  • Partnership Firm-LLP
  • PVT. LTD.
  1. COPY OF ADMISSION LETTER OR THE INSTITUTE ALONG WITH FEES SCHEDULE
  2. MARK SHEET /PASS CERTIFICATE OF SSC ,HSC ,DEGREE CERTIFICATE Q
  3. INCOME PROOF OF THE GURANTER IF THE APPLICANT IS NOT EMPLOYED . THE SAME DOCUMENT MENTIONED ABOVE ARE REQUIRED FOR GURANTOR ALSO
  4. DECLARATION /AFFIDAVIT CONFORMING THAT THE CANDIATE HAS NOT OBTAINED ANY OTHER BANKS
Frequently Asked Questions

What is Education Loan?

Education loans are offered by banks to students to enable them to pay for higher studies such as graduation and post graduation courses, both in India and overseas. Apart from the tuition fees, other aspects of expenses such as hostel charges, equipment purchases and other course related expenses may also be covered by the education loan. In case of overseas studies, many education loan providers include the price of a return ticket into the education loan corpus.

Who is eligible for an education loan?

Every bank has its own eligibility criteria for dispensing education loans, but a few common parameters are:

  • Applicant should be an Indian national.
  • Applicant should have confirmed admission in a college/educational institution at the time the loan application is made.
  • Applicant should be in the age bracket 16–35 years.
  • The Applicant should have a co-borrower such as a parent who acts as guarantor for the loan. 

What documents does the lending bank ask for?

Documents to be submitted with the education loan application include:

  • Admission confirmation letters and papers validating any scholarships the applicant has qualified for 
  • Schedule of expenses for the course including tuition fees and other expenses
  • Score sheet of qualifying test
  • Copies of foreign exchange permit/student visa for overseas studies
  • Bank account statements for last 6 months ( joint account with parent/guardian admissible)
  • Statement of assets & liability

What are the courses for which an education loan can be availed?

Education loan can be availed for all courses recognized by the UGC in case of India and all regular courses abroad. Each lender has its own list of educational institutions and courses that they would provide a loan for whether overseas or within India.

What are the expenses covered by education loans?

Education loans can be used for paying:

  • Tuition fees and hostel expenses
  • Exam, library, and lab fees if applicable
  • Any refundable caution deposits paid to the educational institute
  • Cost of books, uniforms, and other essentials for completion of course
  • Travel expenses (return fare for international flights) 

Is a co-applicant for education loan needed?

Yes, for all full-time courses a co applicant is required. The co-applicant can be Parent/Guardian or Spouse (if-married).

Who can be my co-borrowers?

Your parents/ guardian can be a co-borrower as well as spouse in case of a married applicant. The co-borrower should have a steady source of income and a good credit history in order to improve the applicant’s chances of a successful loan application.

Is there a maximum limit on an education loan that a lender can disburse?

Most lenders have a maximum limit of Rs 10 lakhs to Rs 15 lakhs for studies within India, while the maximum limit on education loans for overseas studies is between Rs 20 lakhs to Rs30 lakhs. In case of some lenders, the applicant can get a higher loan amount sanctioned provided bank-accepted collateral is provided. 

What is the tenure of an education loan?

The average tenure for an education loan is between 5-7 years in case of most lenders. However, some lenders can offer a longer tenure of up to 15 years in case of higher loan amounts.

What is the maximum loan amount one can get for overseas studies?

Banks generally fund up to 90% of the education expenses as loan and some even provide loans for 100% of education expense. However, the exact loan amount an applicant is eligible for depends on a range of factors including the monthly earning of the parent/legal guardian, the value of collateral provided, the academic record of the applicant and other factors.

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