For a successful life and a complete life, having a qualitative educational loan is very important. However, for many students out there, having a quality education is equivalent to graduating from a top institution. But, the cost of education is rapidly increasing. As a matter of fact, the cost of studying at reputed institutions is already very high. There are some features of education loan.

As a result, higher education are becoming costlier with each passing year. Actually, the cost of inflation in education is going way higher than the overall consumer price inflation. As a consequence of this, many students out there, have to resort to student loans in India.

Moreover, the applicant for the educational loan in India can claim a deduction for the entire interest part of a loan under section 80E of the Income Tax Act

It goes without saying that, the list goes on and on. There are some features of education loan and some of the evoking benefits of applying for an education loan are:

  • The education loan not only covers the cost of your course but almost the entire expense of your education. The majority of the banks out there generally fund up to 90% of the cost of education. Following are the expenses that will be covered under the education loan-
  • Tuition fees as well as hostel expenses
  • Exam, library, and lab fees if applicable
  • Any refundable fees paid to the institute
  • Cost of uniforms, books and other essentials
  • Traveling expenses

1. Great rates

Government student loans have low-interest rates and you do not need to pay back until you are earning a certain amount. Similarly, with a private loan, you benefit from lower, capped repayments in the study.

2.Chunky tuition fees

Course costs have increased drastically in recent years. Therefore, it is highly likely you will need to take a loan – government or private – to afford your annual fees.

3.Living expenses

The costs of living for three years or even more can soon mount up, especially if you are studying in one of the big cities out there. Also, a maintenance loan from the government or a Future Finance student loan can help give you a decent standard of living.

4.Peace of mind

Instead of worrying about the rent of the next month, a good student loan can help give you a sensible long-term finance so you can stay relaxed, energized and focused on your studies.

5.Invest in the best

Higher education is increasingly seen as an investment in the future. So, instead of depriving yourself of the life and career you really want because you don’t have the money to pay for it right now, a smart, flexible student loan can help you realize your potential and achieve your goals.

Documents required and eligibility criteria for education loan:

It goes without saying that, Education loan is becoming more and more common these days, as the cost of education going higher and higher. But, there are some eligibility criteria for education loan in India. First of all, an educational loan comes with a number of responsibilities. As a matter of fact, the student has to repay the loan amount to the bank or the lender along with the interest within the due time. That is why, he or she needs to choose the course, the institute, and the subjects wisely in order to ensure job security.

Actually, taking an educational loan is much easier than any other loan. This is because some banks or the lender does not really ask for any collateral or even a guarantor for allowing the loan. But still, there are certain eligibility criteria for education loan and you need to meet these criteria to avail of the loan. Also, another thing you need to keep in mind before you apply for a student loan is that you need to make sure that you have all the necessary documents that you will need to show at the time of application. Moreover, another key point is that you need to have a thorough knowledge of what you required before you apply for an education loan to avoid rejection. Though, the eligibility criteria may vary from lender to lender.

But, some of the most common eligibility criteria for education loan in India are:











Minimum- 18 years

Maximum- 35 years


Academic record


Proven- good




Pursuing graduate/postgraduate degree or a PG diploma.

Income source






Tangible collateral or guarantor- depending on the loan amount and income source.

Various documents required for applying for student loan in India are:

  • Duly filled and signed application form with affixed photographs
  • 2 photographs of passport size
  • Or, Copy of exam mark sheets of 10th/12th or latest education certificate
  • Statement of course expenses/cost of study
  • Or, Aadhaar Card and Pan Card of the Student and Parent/ Guardian

Age proof

  • Copy of Aadhaar Card /Voter ID/Passport/Driving License
  • Identity proof
  • Also, a copy of the Voter ID/Aadhaar Card/Driving License/Passport can do.

Residence proof

Rental agreement/Bank statement of 6 months of the student or co-borrower/guarantor/Copy of Ration card/Gas Book/Electricity Bill or a Tel Bill

Income proof

  • Most recent salary slips or Form 16 of the parent/ guardian/co-borrower
  • Also, you can show a 6 months bank statement of the borrower or updated passbook of bank
  • Updated ITR of 2 years or IT assessment order of last 2 years of parent/co-borrower/guardian
  • Also, it can be the documents stating the assets and liabilities of the parent/co-borrower/guardian

So, Make sure you have all the above documents and you meet the eligibility criteria before applying for a loan.


An education loan is basically a sum of money that a student borrows in order to finance college or other school-related expenses. Payments often differ while students are in school and for a six-month grace period after graduation. You can issue these student loans for various purposes, of attending an academic institution and pursuing academic degree. Educational loans can be obtained from the government as well as through any private sector lending sources. Federal loans often offer lower interest and some also offer some subsidized interest. An educational loan is basically designed in order to aid the financial needs of an applicant for affording the cost of education. Since these loans cater to the customers going for higher studies, the loans can be classified on the basis of various parameters, such as:

Study abroad loans.

Domestic loans.

Course based loans.

Undergraduate loans.

Graduate or professional loans

Career loans.

There are some compelling reasons for applying for a home loan:


  • Easily accessible and is available to everyone
  • Helps finance course in India as well as Abroad
  • Customizable amounts of loan
  • 100% finance options available
  • Applicant’s annual family income and course opted for determining the loan amount
  • Government-sponsored subsidies available for minority students
  • The repayment period begins after the completion of the course.
The student loan application comes with various benefits. Various benefits of student loan in India are:
  • Very Low-interest rate – Education loan falls under the priority sector lending. The Reserve bank of India has made it necessary for Indian Banks to lend 40 % to the priority sector. This makes the students loans come at a very economical price
  • Flexible Payment terms – Most of the financial institutions have partially or wholly waived of paying the monthly installments at the time of the study. The student further gets generally up to a year to search to get a job and start paying the equated monthly installment after one year or after finding a job whichever is earlier. This makes it utterly easy for the students out there to borrow and very favorable terms of the loan.
  • Flexible Loan Options – Education loan is one of the very few loans on the basis of the future earning potential of the student. There are loan players in the market who are purely relying on the students earning potential. They do not insist on any security from the student in the form of collateral or even a guarantor.
  • Easy to Repay – Education loans are easy to repay and as per our analysis most students are able to repay the loan taken on their studies within 2/3 years of graduation. In most countries, there are 2/3 years stay back option. This would more than offset what you might have spent on your studies.

Education loans have helped the students out there in many ways for financing their educational expenses. In India, there are many Student loans in India with good schemes to help the students out there in affording their expenses.