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Educational loans – Eligibility, Required documents, Interest

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Educational loans – Eligibility, Required documents, Interest. No deserving students should be stopped to pursue their dreams due to lack of money. One who has the desire to study should not be away from the studies just merely because of lack of financial support. In India day by day education is becoming costlier. There are number of students who depends on educational loan for their higher studies and study in abroad. The sole objective of educational loan is to give the financial support to those who cannot afford the higher studies. Now check more details regarding “Educational loans – Eligibility, Required documents, Interest” from below….

Eligibility for Educational loans:

Generally all the banks consider some eligibility criteria for educational loans which is as follows:

  1. Student should be an Indian national
  2. He/she should be of the age group 16 to 35-40 years
  3. He/she should be pursuing a graduation/ post-graduation.
  4. Should have a confirmed admission from a college or institution which has been recognized by UGC/Govt./AICTE.
  5. He/she should have a Co-applicant: A co-applicant is mandatory for all full time programs. Co-applicant could be Parent/ Guardian or Spouse (if married) / Parent-in-law.
  6. Collateral security is required for the loans crossing certain limits which may vary from bank to bank.

Must Read – Types of loans – 9 Types of Loans in India

Coverage:  Following are covered by educational loan

  1. Tuition Fees payable
  2. Complete accommodation charges
  3. Exams Fees
  4. Any auxiliary academic fees
  5. Fees for books, library and any lab.
  6. Travelling expenses (For study in Abroad)
  7. Other expenses associated with studies.

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Disbursement of loan:

Generally banks take up to 15 days to process the loan application if it is complete in all respects. Otherwise it may be up to 1 month also.

Maximum amount

Maximum amount of loan varies from bank to bank.

Name of the Bank Maximum amount (Rs lakhs)
Studies in India Studies  Abroad
State Bank of India 10 30
HDFC 10 20
ICICI 10 20
Axis 10 20
IDBI 10 20
Bank Of India 10 20
UCO Bank 10 20
Corporation Bank 10 20
Karnatak Bank 10 20
PNB 10 20

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Documents required:

  1. Duly filled loan application form along with photographs
  2. Acknowledgement of admission into the institution
  3. Statement showing the details of the cost of education having the break up for each part.
  4. Duly filled KYC form
  5. Marks cards and certificates of Secondary and senior secondary along with the degree courses if any.
  6. AADHAR and PAN card of the students and parents/guardian.
  7. Proof of residence & proof of address
  8. Bank statement of co applicant / guarantor
  9. Proof of income of the guarantor
  10. Any form of communication from the institution/college mentioning about educational loan.

Must Read – Deduction in Respect of Various Loans

Interest Rates:

Interest rate vary from bank to bank

Name of the Bank Education Page Link
State Bank of India Click Here
HDFC Click Here
ICICI  Click Here
Axis  Click Here
IDBI  Click Here
Bank Of India  Click Here
UCO Bank  Click Here
Corporation Bank  Click Here
Karnataka Bank  Click Here
PNB  Click Here
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