Simple guide – How to get a Student loan in India


In India, the education loan came into existence from the year 1995. There are many financial institutions in India that provide education loan to the students since then. However, they lay down certain criteria’s of eligibility and you must live up to those conditions in order to apply for your education loan in India.

There are certain steps that are needed to be followed properly in order to apply for an education loan in India.


  • Firstly, you are required to fill the loan application form. You can take this form from the bank in which you are applying for the loan.
  • Filling of form is followed by a personal discussion where the applicant is being asked some questions in regard to his academic performance, the course that he looks forward to pursue, etc.
  • After this, you are required to present all the important documents to the bank. The list of the documents to be attached has been discussed further.
  • After this, a stage of approval/ denial comes. Once the guarantor is checked, the bank approves / denies the loan accordingly.
  • The applicant is further made to sign the promissory note to the bank.
  • Lastly, the loan is disbursed.
Eligibility for Student loan in India

The eligibility norm for securing an education loan for the purpose of higher education in India is given as under: –

  • An individual applying for the loan must be a citizen of India.
  • He should be aged in between 16-35 years.
  • If an individual wants to take a loan of more than Rs. 7.5 lacs, he should provide a collateral security for this purpose.
  • A co-applicant is necessarily required for all the full-time programs. A co-applicant of an individual can be his Parent, Guardian, Spouse (if married) or any Parent-in-law (if married).
  • The individual applying for the loan must have a fair enough track record and must have secured his admission to a renowned or a recognized University or College.
  • The co-applicant of an individual must be fairly salaried. Banks usually consider the age, annual income, work experience and the profession of the co-applicants to decide the amount for the education loan of the individual (student). The co-applicant can either be a salaried or a self-employed parent, relative or a sibling to an individual with a steady source of income. 
Important documents required to apply for the Student loan

There are certain important documents of both, the student as well as the co-applicant that are considered by the bank to decide for the amount of the loan to be provided to him.

Documents from the student for educational loan

Following documents are needed to be presented by the student in the bank:-

  • A completely filed Application form along with the photographs.
  • A letter of admission from the institution.
  • A study of the cost breakup of the program from the institution, providing the term-wise or the year-wise tuition-fee, and any other concerned expenses for this purpose.
  • A complete academic-record of the student in the form of the mark sheet from 10th standard to the last exam cleared by him.
  • A declaration or an affidavit complying with the condition that no loan has been sought from other bank or institution.
  • Address proof of the student – his passport, ration card, voter’s ID, driving license, or his statement of bank.
  • ID proof of the student – his passport, photo pan card, voter’s ID card or driving license.
  • Signature proof of the student – his photo pan card, verification of bank signature, voter’s ID card or driving license.
  • Age proof of the student – his birth certificate or his certificate of passing 10th standard.

Documents from the co-applicant

  • ID proof of a photo pan card, driving license, passport or voter’s ID card.
  • Address proof of his ration card, telephone/electricity bill, copy of passport or any rental agreement.
  • Bank statement of the co-applicant for the last three months, if the co-applicant is self-employed, his bank statement for the last six months.
  • Latest salary slip if the co-applicant is salaried. If the co-applicant is self-employed, his proof of qualification of the highest professional degree.
 The minimum and the maximum eligible amount for studies in India and abroad 
  • The minimum amount of loan that the banks grants to the students for studies in India is Rs. 50, 000 and the maximum eligible amount for the same purpose is Rs. 10, 00,000.
  • The maximum amount that the banks usually grant as a loan for studies in abroad is Rs. 20, 00,000.

 If you have any doubts regarding Education Loan, kindly leave as comments. We would try our level best to address those.

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  1. Victoria says

    Just in time for me. I will definitely give this a try. Thanks for sharing.

  2. suresh says

    for this loan any interest will be applicable

    1. Mohammad Ali says

      Interest rate will vary for each bank,
      In SBI
      Upto Rs.4 lakhs / 13.35% p.a (base rate + 3.65%) Between Rs.4 lakhs- Rs.7.5 lakhs / 13.60% p.a(base rate + 3.90%) Above Rs.7.5 lakhs / 11.60% p.a (base rate + 1.90%).