Education Loan Eligibility Details

Education loan or student loan, are advances made by banks or financial organisations for the purpose of meeting higher education expenses of the students. Under this special loan scheme, the meritorious students of the country having excellent educational qualification are offered financial help to study in renowned institutes in India and abroad.

Most of the Indian banks offer such loans to the deserving candidates at a low interest rate with flexible terms and conditions. Moreover, the documentation process is kept minimal to enable the students get the loan amount within a quick span without much complexity.

Education Loan Eligibility

Since these loans are offered to brilliant students who are unable to meet the expenses of their higher education, the basic education loan eligibility is the academic excellence and achievements of the students. In other words, the eligibility of the applicants are assessed on the basis of their academic performance as cited in the mark sheets of previous exams.

Eligibility criteria

The vital education loan eligibility criteria that the candidates need to fulfil to get approval for the loan are listed out here:

  • The candidate applying for the loan must be a resident of India.
  • He/she must have confirmed admission in recognised educational institutes in India or abroad.
  • The age of the candidate must fall within the bracket of 18 to 35 years during loan application.
  • He/she must be undergoing a graduate/postgraduate degree or a PG diploma.
  • The applicant should have a secured admission in a college or university affiliated by UGC/AICTE/Govt. etc.
  • Students pursuing full-time courses need to have a co-applicant who can be either parent/guardian or spouse/parent-in-law (in case of married candidates).

Tabular representation

Education Loan Eligibility






Minimum- 18 years

Maximum- 35 years

Academic record

Proven- good


Pursuing graduate/postgraduate degree or a PG diploma.

Income source




University Applied to

Recognised – In India/Abroad

Admission Status



Tangible collateral or guarantor- depending on the loan amount and income source.

Education Loan Documentation

As told earlier, education loan documentation doesn’t involve any hard-core paperwork. The process is simple and can be conducted online without paying physical visits to the banks. However, the process might vary depending on the criteria set by various banks or lending organisations. Also, the banks being very strict in their terms, failure to submit the mandated documents will lead to rejection:

Required Documents

Here are the mandatory documents that a student need to provide to the banks while applying for a student loan:

  • Duly filled and signed application form with affixed photographs
  • 2 photographs of passport size
  • Copy of exam mark sheets of 10th/12th or latest education certificate
  • Statement of course expenses/cost of study
  • Aadhaar Card and Pan Card of the student and Parent/ Guardian

Age proof

  • Copy of Aadhaar Card /Voter ID/Passport/Driving License

Identity proof

  • Copy of Voter ID/Aadhaar Card/Driving License/Passport

Residence proof

  • Rental agreement/Bank statement of 6 months of the student or co-borrower/guarantor/Copy of Ration card/Gas Book/Electricity Bill/Tel Bill

Income proof

  • Most recent salary slips or Form 16 of the parent/ guardian/co-borrower
  • 6 months bank statement of the borrower or updated passbook of bank
  • Updated ITR (Income Tax Return with income computation) of 2 years or IT assessment order of last 2 years of parent/co-borrower/guardian
  • Documents stating the assets and liabilities of the parent/co-borrower/guardian

What will Improve Your Eligibility for an Education loan?

In order to make sure that the monetary help reaches the worthy students, banks are very strict in assessing the eligibility of the candidates. The overall academic excellence of the students, their future course of education and status of current admission are the basic parameters that evaluated before giving a loan approval. Hence, working on the following areas will improve your eligibility for an education loan:

  • Scoring high grades/ranking in the qualifying exams
  • Displaying good academic record
  • Getting admission in a reputed/top-tier institute or university
  • Strong financial background of parents/guardians/co-borrower
  • Displaying good prospects for future employment/income generation

How to Know Your Eligibility for an Education Loan?

Before applying for an education loan from any of the top banks, you can check your eligibility in advance. You can know your eligibility by conducting an online check on the Bank Bazaar website. At Bank Bazaar, all you need to do is provide basic, key background details required to qualify for an educational loan. Based on this data, results for suitable education loan offers are displayed in an easy-to-compare manner. Users can then apply online for the most appealing offer and avail unique deals as provided by Bank Bazaar to its users through collaborations with its partner institutions.

Procedure to check eligibility

  • Visit the official website of Bank Bazaar.
  • Go to the ‘Loan’ section and click on ‘Education Loan’ tab.
  • Alternately you can also hit the ‘Apply Now’ tab present on the website to get redirected to the education loan page.
  • Next, fill up the given form with your particulars and course details like your location, course level, country of study, course of study, name of university, expected course expenses, and course duration along with the details of the co-borrower and collateral.
  • Once done accept the terms of the privacy policy of Bank Bazaar and click on ‘Search for Loans’ tab.
  • Based on your particulars, the site will then show you suitable loan offers from their bank partners.
  • You can choose the most advantageous offer from the given options and then apply for the same through the Bank Bazaar portal.

Since the process of education loan is so easy and the terms are flexible, it has opened up ways for the deserving students to opt for this loan and fulfil their desires of pursuing higher studies in their preferred institutes in India and abroad. Whether you are a student, or working professional, if you fulfill the criteria mandated by the banks, you will be eligible to get a education loan to meet up the expenses of your future course of study.

News About Education Loan

  • More funds for education in Union budget 2018-19 to improve teaching

    Earlier, the Higher Education Institutions (HEIs) established by the state and central governments got 60-80% of the budgetary support. Of late, privatisation of education is becoming increasingly common in public sector educational institutions. The budgetary allocation for public sector HEIs was 42% at Rs.29,703 crore in 2016-17. This number is less than 1% of the Gross Domestic Product (GDP). The fund allocation for higher education in the Union Budget is insufficient. 50% of the HEIs are understaffed and inoperational. Hence, the need for more funds for higher education in the 2018-19 Union Budget.

    18th January 2018

  • Corporation provides Rs.5.2 lakh education loan to an engineering student

    Jammu and Kashmir Scheduled Castes, Scheduled Tribes and Backward Classes Development Corporation Limited provided an education loan amounting to Rs.5.2 lakh to Honey Sambyal, a science student who passed 12th standard and is pursuing B.Tech in Civil Engineering at Guru Nanak Institute of Technology in Haryana on 6th January 2018. While the first installment of the education loan was transferred to the beneficiary’s bank account, the second installment amounting to Rs.2.5 lakh was handed over to the beneficiary's father by Balbir Ram Rattan, the Vice Chairperson of the Corporation. Honey Sambyal will be expected to repay the education loan in regular EMIs once he graduates from college.

    8th January 2018

  • Bihar state government to offer SCC loans through BSFC to youths

    The Bihar state government through the Bihar State Finance Corporation (BSFC) plans to offer Rs.4 lakh education loan to students pursuing higher education after completing their higher secondary in FY2018-19. The education loan will be provided through the student credit card (SCC) scheme. Till now, the SCC loans have been disbursed by the public sector banks after receiving recommendations from the District Registration and Counselling Centres (DRCC). Due to the delay in disbursal only a few thousand students were able to get SCC loans in the past 2 fiscal years. Therefore, the state government has decided to disburse SCC loans to students through BSFC from now on.

    5th January 2018

  • 30 students in Namakkal receive education loan from Indian Bank

    At a special camp organised by the Indian Bank and the School Education Department which was held at the Government Girls Higher Secondary School in Namakkal, education loan worth Rs.80 lakh was disbursed to 30 students for higher studies. District Collector, M. Asia Mariam inaugurated the camp which was attended by R. Gopi Krishnan, the Regional Manager of Indian Bank in Salem. The District Collector distributed cheques to 30 students who are pursuing higher education. This initiative is to ensure deserving students get an opportunity to continue their education. Deserving students can now easily apply for an education loan through the Vidyalakshmi website instead of approaching a bank branch in person.

    3rd January 2018

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