Compare Education Loan in India: Student Loan Interest Rate from Top Indian Banks, Check Eligibility for Education loan, Documents Required, Get Best Education Loan Quotes & Apply Online Now.
Education in India, at least the commonly perceived ‘quality education’ as imparted by acclaimed and influential educational institutions, is decidedly costly and not easily available to everyone- especially those who deserve it based on merit alone. Thus, education loans are vitally important. Almost all banks in India offer education loans, and the demand for it has remained stable with the Indian student community.
Education Loan Eligibility:
Listed herein are the basic requirements that qualify your application for an education loan,
The applicant must be a resident Indian.
He/she must have secured admission into a recognized course of study, in India or abroad, through an entrance test or other such qualification procedure.
If the applicant is a Non-Resident Indian (NRI), he/she must hold a valid Indian Passport.
Courses applicable in India- Graduation, Post-Graduation, Diploma programs, Technical courses, Management courses and other professional courses. All from recognized universities.
Courses applicable Abroad- Graduation, Post-Graduation, Certificate Degree courses from CIMA- London, CPA-USA and other such well known educational entities.
The applicant must provide a collateral/security that is enforceable in India.
Note- This above listing is a basic eligibility requirement. Banks, in their own capacity, may request for more documentation and proof.
Documentation Required When Applying for an Education Loan:
When applying for the loan, the lender in question will ask for a number of documents that prove your eligibility in terms of your student status, family income, ID and address proof, course applied for, and other such factors. Listed herein is the basic list of required documents-
Completed loan application form.
Documents for proof of age (self-attested).
ID and Address proof.
Passport sized photographs of the applicant, guarantor, etc.
Copies of highest educational qualification (degree/post-graduation, etc.)
Proof of income (IT returns of parents/guarantor).
Six months bank statement for account held by applicant/parent/guarantor.
Details of collateral security marked by a Government approved valuer (if applicable).
Passport/Visa copy, airfare cost as established in documents (for studies abroad).
As noted, banks in their individual capacity can request for additional documents. Submission of the same, in their required format, is crucial for the smooth sailing of your application form.
What are the courses in India for which education loans are available?
Any of the following courses, as offered by recognized universities, is eligible for an education loan in India-
Professional courses including Engineering and Medicine
Management courses (both full time and part time)
ICWA, CA, CFA etc.
Courses conducted by IIMs, IITs, IISc, XLRI. NIFT,NID etc.
Architecture, Agriculture studies, Fine Arts and Designing etc.
Hotel and Hospitality.
Courses such as SAP , ERP , GNIIT , Air Hostess Training programmes etc.
Distance learning programs and online certifications.
Degree/Diploma courses like Aeronautical, pilot training, shipping, etc.,
Aircraft Maintenance Engg, Pre-Sea Training courses and the like.
Nursing and Para Medical courses (includes admission via management quota).
Courses offered by reputed institutes that assure employment and are Govt. certified.
Courses offered in India by reputed and certified foreign universities.
All courses listed here- www.ugc.ac.in , www.education.nic.in and www.aicte-india.org
What is the age restrictions for subscribing to an education loan?
Generally, there are no restrictions. Most banks and financial institutions do not impose this rule. However, certain lenders do mark an age limit spanning from 16-35 years.
Aside from the fee payable to the school/college, what other expenses are covered by the loan?
Towards the purchase of books, uniforms, equipment and instruments.
Purchase of computers/laptops, if deemed necessary for the completion of the course.
Fees paid for Exams, Library, Laboratories, Hostel, etc.
Building fund, Caution deposit, Refundable deposit (must be supported by receipts/bills).
Costs incurred in travel, for studies abroad.
Additional costs that are required to successfully complete the course, including but not limited to, Study tours, Thesis work, Projects, etc.
Does taking an education loan entitle me to any tax benefits?
Not immediately. However, after you start repaying, you are free to deduct the loan interest amount from your total income when calculating tax.
How does the bank track my educational progress through the course period?
The applicant is expected (and mandated) to submit his/her progress reports periodically. The progress reports could be mark sheets or a suitably attested letter from the applicant’s school/college.