Higher education is a dream of all students but money is a barrier. Education loan is a way to get higher education in desired Collage and universities. In this article we are going to talk on How to take an education loan, What are the minimum documents requirement, List of banks that provide education loans in India and steps to get an education loan easily form national banks. Eligibility criteria to get education loans.
The amount of Education loan depends on courses and locations. Normally Banks offers Upto Rs 10 Laks for Courses in India and up to RS 20 Laks for studies in abroad. But the Size of Loan depends on many things like the course and the college, the loan size of student loans in India ranges between Rs 2 lakh and Rs 22 lakh, the average loan size being about Rs 5 lakh.
Education loans cover tuition fees, examination, library, laboratory, and hostel, money for purchasing books, equipment, instruments, and uniform, travel expenses for studies abroad, caution deposit or refundable deposit, etc.
Minuman Documents Required to Get an Education loan in India
Proof of identity documents for education loan:
Proof of Identity can be considered one from the below list. It may depends on banks to banks.
- Aadhaar card
- PAN card
- Driving License
- Valid electricity/water/LPG bill
- Valid passport issued by GOI (Government of India)
- Aadhaar Card
- Voter’s ID card (not accepted by all banks)
- The current house lease agreement
- Magistrate/Gram Panchayat affidavit (not applicable for all banks)
Educational Documents to avail Education Loan
Documents required as per loan type. If you are a tacking loan for studies in aboard then you required the last five documents as well.
- SSC/10th Class or equivalent mark-sheet/passing certificate
- HSC/12th Class or equivalent mark-sheet/passing certificate
- Graduation/3 year or 4-year degree mark sheet/passing certificate (if applicable)
- Diploma passing certificate/record of marks/diploma certificate
- Records of past scholarships/awards etc.
- Special education/ Professional courses/Certificate courses passing certificate
- Proof of admission: conditional offer letter/letter of admission/permanent admission letter/counseling seat allocation certificate/bonafide certificate
- Records/documents of academic fees breakup
- College/University/Institution placement records (not mandatory for all banks)
- I-20 form for study in USA academic institutions
- CAS Letter for UK education loan applicants
- Entry permit (if applicable for respective country)
- Admission exam qualification proof (GMAT, GRE, IELTS, TOEFEL, etc.)
- Exchange student form or exchange visitor form of the respective country
Education Loan Subsidy Application forms
List of Banks that Provides Education Loans Easily
There are several banks that provide education loans but the process is hard. Below we have listed a few banks that may provide you education loans with minimum process and documents.
- Axis Bank
- Bank of Baroda
- Canara Bank
- HDFC Bank
- ICICI Bank
- Indian Overseas bank
- State Bank of India
Interest Rate Compersion on Education Loan From Varies Banks
|Name of Bank||Rate of Interest per Annum|
|Axis Bank||13.75% to 15.75%|
|Bank of Baroda||10% for loans up to Rs 4 lakhs and 12% for higher amounts|
|Canara Bank||11% for loans up to Rs 4 lakhs, 12% for loans between Rs 4 lakhs and Rs 7.50 lakhs and 9.50% for loans greater than Rs 7.50 lakhs|
|ICICI Bank||Up to Rs 4 lakhs no interest above Rs 4 lakhs 15%|
|Indian Overseas bank||Up to Rs 4 lakhs no interest above Rs 4 lakhs 15%|
|State Bank of India||Up to Rs 4 lakhs – 13.50%, between Rs 4 lakhs and Rs 7.50 lakhs – 13.75% and above Rs 7.50 lakhs – 11.75%|
Eligibility Criteria to get an education loan in India
Here are the eligibility criteria to take an education loan form any Indian banks. Check your eligibility before you apply.
- Candidate must be a resident of India.
- Admission Must be confirmed in any recognized educational institutes in India or abroad for He/She.
- Age Limit of Candidates must be in between 18 to 35 years.
- The applicant must have secured admission in a college or university-affiliated by UGC/AICTE/Govt. etc.
- The applicant must have a co-applicant who can be either a parent/guardian or spouse/parent-in-law.
|Eligibility Creteria for Education Loan|
|Age||Minimum- 18 years|
|Maximum- 35 years|
|Academic record||Proven- good|
|Qualification||Pursuing graduate/postgraduate degree or a PG diploma.|
|University Applied to||Recognised – In India/Abroad|
|Security||guarantor- depending on the loan amount and income source.|