How to apply for Student Loan / Education Loan In India

Apply for Student Loan / Education Loan In India By Yourself

  • When you are applying for a student loan, first you have to know the you’re able to borrow and how much will you require for a loan in order to meet your requirements, taking into account of tuition fees as well as boarding , lodging costs etc.
  • After deciding the amount of the education loan and the agency or Bank that will approve the loan, there is the problem of how to apply for the loan.
  • Check out your local Agency / Bank which you have chosen to apply for an education loans. Fill out the application form accessible at the Agency / Bank and submit all the required documents, documents and proof.
  • Once your loan is approved, the amount will be distributed in stages in accordance with the demand or requirement directly to the institutions or vendors of equipments, books and instruments, to the extent feasible.

Required Documents For Apply for Student Loan / Education Loan

  • Institute Admission Letter and Fee Brak-up
  • SSC, HSC, Graduation Marksheets

KYC (Know Your Customer)

  • Age Evidence
  • Signature Documentation
  • Identity Identification
  • Residence Documentation
  • Aadhaar Card
Income Documents


  • The latest Salary Slips 2 with dates of joining and other details
  • The most recent 6 month Bank Statement of Salary Account.


  • Last 2 Years ITR and the computation of income
  • Balance Sheet for the 2nd year of Balance Sheets that have been audited
  • Last 6 Months Statement from the Bank
  • The proof of turnover (Latest Sales or Service Tax Return)

Self-employed Professional

  • Last 2 Years ITR and the computation of income
  • The Balance Sheet for the 2nd year of Balance Sheet Audited or P& L
  • Statement of the Bank for the Last 6 Months
  • Certificate of Qualifying
  • Fees and Course Information
  • The Co-applicant KYC as well as Income Documents

Collateral Documents


  • The person who is taking the loan for study is required to be an Indian citizen and at least 18 years old.
  • Must have been able to gain admission to a course of higher education at a recognized institution in India through the Entrance Test/ Merit Based Selection after the completion of an HSC (10 and 2 plus equivalent).
  • A co-applicant is required for all full-time programs. The co-applicant can be a parentor Guardian, or spouse (if married) or Parent-in law (if you are married).
    • Co-applicants must be Indian Citizen and should be parent(s)/guardian or the sibling of the student who is borrowing. If married the co-borrower could be spouse as well.
    • Co-applicants must have a bank account at every bank within India that has cheque writing facilities
    • Co-applicant will always be the principal creditor.
    • The Co-applicant may be in the town or city that is distinct from the residence of the student.


There are no processing fees for studying abroad for up to Rs.4.00 Lacs, and in the cases of study in India regardless of the loan amount. For loans over Rs.4.00 Lacs to study abroad.

  • Rs. 5000to be collected at the time of handing out a sanctions to the student or guardian.
  • Rs.1000/to be used to pay processing charges.
  • Rs.4000per annum to be adjusted in accordance with the student margin at the time approval of the loan.
  • If the loan is not used due to any reason for the borrower, then the loan amount of Rs.4000$ will be returned to the student with no interest.

There are no processing costs to be imposed on loans made to the recipients of Banks staff members , including retired Staff


The purpose of the Educational Loans is providing vital financial assistance to worthy students to pursue higher technical or professional training in India and around the world. The loan for education would be given to students who have gained admission to courses that are career-oriented e.g. engineering, medicine management, and so on. It could be at either the postgraduate or graduate levels. The reason students can seek loans for education include:

  • Other fees and tuition
  • Maintenance costs, books & equipments, etc.
  • Cost of travel (for studies in other countries)
  • Caution fund/building fund/refundable deposit.

The maximum amount for education loans

While educational loans are dependent on the individual who repays the parentsor students however there are limits and margins.

  • Study in India The maximum amount is Rs.10 lakh, subject to the repayment capacity of parents and students.
  • Students studying abroad Maximum. 20 lakh, subject to ability of parents to pay and the student.

Margin Money

  • There isn’t any margin money required for a student loan that is up to 4 lakh rupees. 4 lakh.
  • For loans for education that exceed 4 lakhs rupees for study at India can be as low as 5%. The amount for study abroad is 15 percent on the total amount. The amount is not to be paid in advance. It could be put aside in the event that disbursements are made from the bank each year on the basis of pro-rata.
  • This figure would also include the amount of any scholarship that the student has


  • up to Rs. 4.00 lacs No Security (Co-obligation of parent or guardian is obligatory).
  • Above Rs.4.00 Lacs and up to Rs.7.50 Lacs The collateral must be as a valid third-party assurance.
  • More than Rs.7.50 Lacs: – A collateral security of acceptable value or Co-obligation from parents / Guardians / third party guarantees together with the transfer of future income of the student in order to pay of instalments.


  • The security could consist of land, buildings or Govt. bonds / securities of the Public Sector and UTI, Units UTI, NSC, KVP Life insurance policy, Gold Bank deposits, shares or debentures in the name of the student or their parent or guardian or any other third-party with a suitable margin as defined in the various loan schemes against the securities. The assignment of future earnings of the student to pay of installments can be made.
  • All charges associated with the valuation of property, searches from Bank Advocate and stamp duty etc. and are to be paid by the lender.
  • If the parent or guardian agrees to pay the interest completely during the any period of moratorium, the collateral security sought could be within the range of 110%-125 percent.
  • If the parent/guardian are not able to cover the interest in full during the any period of moratorium, the collateral security acquired could be around 150 percent.

Rate of Interest

  • Up to Rs. 4.00 Lacs, not to over BPLR
  • Over Rs4.00 Lacs, not exceeding BPLR +1 10%

Current Interest Rates

  • The loan amount is up to Rs. 4.00 Lacs 11.50 percent (1 percent lower than BMPLR)
  • Credits in excess of Rs4.00 Lacs & UP TO Rs.10.00 Lacs 12.50% (0.50% ) less than BMPLR)
  • Loans in excess of Rs.10.00 Lacs 13.00 percent (At BMPLR)

The interest that accrued during the period of moratorium has to add to principal at the expiration of the moratorium and the repayment is fixed in EMI in line with.

  • The interest to be debited mothly/quarterly/half yearly on simple basis during Repayment holiday / Moratorium period.
  • Penal interest is assessed at 2 per cent on all non-compliant Education Loans exceeding Rs.4.00 Lacs in the case of an overdue amount and the overdue period.


The interest rate may differ depending on the authority of the loan and at which the loan is taken out.


  • The repayment of the loan begins one year following the conclusion of the program or 6 months following having a job, which is earlier . The loan has to be paid off within 5 to 7 years.
  • To lessen the burden of interest parents or guardians could choose to pay interest over the duration of the moratorium and also avail the interest-rate concession.
  • If the student isn’t capable of completing the course within the stipulated duration, an extension of time to the completion of the course could be granted up to two years. If the student is capable of completing the course due to reasons beyond their control, the sanctioning authority can at its discretion take into consideration such extensions that may be necessary to finish the course.
  • The accrued interest over the holiday period for repayment is to be added to principal amount and the repayment will be made through Equated monthly instalments (EMI) be set.
  • The concession is 0.50 percent in interest for the moratorium period , if 0.50 percent of loan amount is paid each month to the interest in part. Concession of 1% interest for the period of moratorium when the interest is paid in full during the moratorium time. This concession must be calculated and then credited back to the account during the January month each year.

The Information You Need

  • Applicant Details
  • Name of the person who is applying
  • Date of Birth
  • Fathers’ Name / Spouse’s Name
  • Mother’s Name
  • Permanent Address / Residence Address
  • Marital Status
  • No. of Children (if they are married)
  • PAN Card Number
  • Passport Number
  • Voters ID Number
  • Driving License Number
  • Aadhar ID Number
  • Religion
  • Category
  • Occupation

Education & Course Details

  • Examinations passed (like SSC, HSC, Final Degree)
  • Address and name of Institution and address of the University
  • Year of Passing
  • Percentage of marks/Class Obtained
  • The name and the address Institution or University where you are will be studying
  • Contact Person Name at the University
  • Course Name
  • Courses that can be used to
  • Course accepted by

Employment Details

  • Name of the employer currently employed (if employed)
  • Office address
  • Designation
  • Date of joining
  • The type of business (if self-employed)

Financial Information

  • Gross Monthly Income
  • Net Monthly Income
  • Other income (if there is any)
  • Investments (if they exist)

The Document is required

The term “student loans” is also used to refer to Higher education loans or Education loans have become a very popular method of financing for higher learning in India and the price of higher education degrees increasing. Self-financing organizations (which have less or no funds by the state) to further education in management, engineering, and medical with higher costs than government-aided counterparts have accelerated the growth of this trend in India. Many major private sector and public sector banks offer loans for education. The loans for education will ensure that the most qualified students are able to decide their future the direction of their own. The purpose of the loan is to help students pay for tuition and books as well as costs of living. Contrary to other financial aids such as the stipends, grants, and scholarships it is required that a student loan be paid back by the person who received it however with less flexibility than other loans. A majority of these loans have to be paid back after the end of the program of study.



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