Education Loan FAQ

Although each bank has its own requirements for qualifying, the following are some typical standards:

The applicant must be a citizen of India.
At the time of the loan application, the applicant must have received written confirmation of enrollment in a college or other educational facility.
The applicant should fall within the 16–35 age range.
A co-borrower, such as a parent, who serves as a guarantee for the loan should be included with the applicant.
For loans beyond Rs. 4 lakh, collateral in the form of a fixed deposit, etc., is required.

The following papers must be included with the loan application:

Letters and documents confirming admission and attesting that the candidate is eligible for any scholarships.
A list of the course’s costs, including tuition and additional costs, is provided.
Score report for the prerequisite exam (s).
copies of the student visa or foreign exchange permission for studies abroad.
Last six months’ worth of bank account statements. (May be held jointly with a parent or legal guardian)
Statement of Borrower’s Assets and Liabilities
Age verification
a residency permit and two passport-size photos
For student loans over Rs. 4 lakhs, collateral-related documentation is necessary.

All UGC-recognized courses in India and all regular courses taken abroad are eligible for an education loan. Each lender has a list of the colleges and programmes that they would lend money towards, whether they were in India or abroad.

Loans for education can be used to pay for:

Student loans and lodging costs
Examination, library, and lab fees, if any
any reimbursable security deposits made to the school
Cost of textbooks, clothing, and other materials required to pass the course.
travel costs, including the cost of international return flights.

Yes, for all full-time courses a co applicant is required. The co-applicant can be Parent/Guardian or Spouse (if-married).

In the case of a married application, your parents or guardian may be both a co-borrower and the applicant’s spouse. To increase the applicant’s chances of obtaining a loan, the co-borrower should have a reliable source of income and a strong credit history.

For studies within India, the majority of lenders have a maximum restriction of Rs 10–15 lakhs, whilst the highest limit for education loans for studies abroad is between Rs 20–30 lakhs. If bank-accepted collateral is presented, certain lenders will grant a larger loan amount for the applicant.

Each student is given some time by the bank before the repayment tenure starts. This is the time granted by the lender before the repayment begins is referred to as the holiday period. It is usually either 6 months to 1 year after the successful completion of the course, or the time it takes the borrower to start working at a job, whichever is earlier. If there is a break in the course or the borrower chooses a sabbatical, it is entirely up to lending bank’s discretion on whether to add a few months to the holiday period.

This is indeed feasible. You can take out a loan for your bachelor’s and then a loan for your master’s without having to pay back the previous debt. This loan may be used as a top-up loan for an existing loan, however doing so is at the discretion of the lending bank and is subject to any internal rules and regulations of the lender.

Once the student has enrolled in a new course, it will start according to the new holiday schedule.

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