Applying for an education loan is a crucial step towards achieving your academic and career goals. With rising tuition fees and living expenses, securing the right loan can ease the financial burden and open doors to a world-class education. The application process itself involves several key steps, from choosing the right lender to submitting your documents and meeting the eligibility criteria.
To get an education loan, choosing right bank is also very important. Choosing the right bank for an education loan offers several significant benefits that can ease the financial burden and make the loan process smoother. However, the process can seem daunting without the right guidance. In this blog, we will walk you through each stage of applying for an education loan, helping you make informed decisions and navigate the application process with ease.
Table of contents
- How to Get an Education Loan?
- Documents Required to Get an Education Loan
- Who Can Get an Education Loan?
- Important Tips Before Applying for an Education Loan
- Types of Education Loans You can Apply For
- Eligibility Criteria to Get an Education Loan
- Courses Covered under Education Loan
- Top Education Loan Providers in India
- Collateral to Get an Education Loans
- FAQs
How to Get an Education Loan?
The education loan can be applied via various methods vary depending on whether you choose an online or offline application method. With the right approach, applying for an education loan becomes a smooth and empowering process. The online method involves filling out a digital form on the bank’s website, uploading documents, and tracking the application in real time, making it quick and convenient. The offline method requires visiting the bank in person, filling out a paper form, and submitting hard copies of documents. This allows face-to-face interaction for guidance but takes more time.
To get an education loan in India, you can start by identifying banks or financial institutions offering student loans, such as SBI, Bank of Baroda, or Canara Bank. Next, review the eligibility criteria, which typically include academic performance, the course of study, and the recognised institution. Gather necessary documents like proof of identity, address, admission letter, and income proof of a parent or guardian. Once ready, obtain the student loan application form from the bank’s website or branch and fill it out accurately. Another and more feasible method is by using Fly Finance as your lending partner where you can enjoy a hassle-free and tailored approach to securing your education loan.
Submit the completed application form and documents in person or online through the bank’s website. The bank will then process the application, verify the details, and disburse the loan amount to the institute if approved. Student loans typically cover tuition fees and other educational expenses.
What is the Process to Get an Education Loan?
Getting an education loan involves several steps, each crucial to securing the financial support needed for higher studies. All the student loans provided by the banks will follow the RBI guidelines on education loans. Below is a simplified process to get an education loan:
- Research Loan Options: Decide if you want to apply for an education loan online or offline. Then look for banks or financial institutions that offer education loans with terms that suit your requirements.
- Check Eligibility: Make sure you meet the eligibility criteria, which often include factors like the course you intend to pursue and your academic record.
- Choose a Trusted Platform like Fly Finance: Fly Finance offers a streamlined process for securing a loan. Here’s how:
Decide Your Loan Amount: Select the amount that aligns with your financial goals.
Check Loan Eligibility: Quickly verify your eligibility to begin the application process.
Choose a Lender: Compare a range of trusted lenders with competitive rates and flexible terms to find the best fit for your needs. - Submit Documents: Prepare all necessary documents, including proof of identity, academic qualifications, and financial documents.
- Loan Application: Fill out the application form and submit it with the required documents.
- Loan Processing: The bank reviews your application, evaluates your credit score, and determines the loan amount.
- Loan Sanctioning: Once approved, the bank will issue the loan, and the funds will be disbursed to you or directly to the institution.
Apply for Education Loan Online
The application process itself involves several key steps, from choosing the right lender to submitting your documents and meeting the eligibility criteria. Steps to apply for education loan online are:
Step 1: Visit the lender’s official website or a loan marketplace.
Step 2: Fill out the online application form with personal, academic, and financial details.
Step 3: Upload required documents (scanned copies).
Step 4: Submit the application and track its progress online.
Step 5: Await loan approval, and finalize the disbursal process.
Documents Required to Get an Education Loan
Education loans are sanctioned to a candidate only after the submission of a long list of documents. Consequently, candidates need to get the list of documents required for an education loan right!
- Address proof.
- Identification card.
- Application form.
- Passport-size photographs.
- Admission Letter.
- Income proof of the guarantor.
- Collateral Security documents.
- GRE/IELTS/TOEFL/GMAT Score.
Who Can Get an Education Loan?
Any student in India may submit an application for an education loan with their parents or legal guardians as co-applicants. You must start making payments on your student loan within six months of obtaining work after your degree or one year after finishing your studies, whichever comes first. An education loan is available to Indian citizens who meet specific eligibility criteria. The applicant must be between 18 and 35 years old and must have secured admission to a recognized educational institution, either in India or abroad.
Additionally, banks assess the applicant’s and co-borrower’s creditworthiness, income, and any existing debts. The loan amount and terms vary based on the course and institution, with professional courses often qualifying for higher loan amounts. For foreign studies, the institution must be listed in the bank’s approved list. Meeting these criteria helps students increase their chances of securing an education loan.
Important Tips Before Applying for an Education Loan
Before applying for an education loan, it’s crucial to be well-prepared to ensure a smooth process and maximize your chances of approval. Here are some important tips to consider before you decide to get an education loan:
- Any student who wishes to apply for an education loan must have their parents or legal guardians sign on as co-applicants. You must start paying back your student loan six months after you complete your degree or if you find work before that time, one year after you complete your studies, whichever comes first.
- You want to pick a bank that offers the option of extending the repayment period in case of delay due to unforeseeable situations.
- Students from the economically underprivileged sections of society should choose government-controlled banks since they provide advantages in the form of student interest subsidies.
- At the start of each semester, the loan amount is often disbursed directly to the school where you wish to apply. Therefore, it must include all of the advantages and services provided so that you do not have to pay any more fees.
Types of Education Loans You can Apply For
Education loan is taken by students to provide a range of services and continue their education with the least financial load. Before you move on to figure out how to get an education loan, take a look at some of the common types of education loans to study abroad:
- Bridge Loans: This pays for students’ pre-application expenses like application, examination, interview and student tours.
- Pre-Visa Loans: These are used as proof of funds availability for abroad loans and that students will not become a liability for the host nation for both accommodation and fees.
- Pre-admission Loans: This includes not only academic expenses but also, in-flight and overseas travel expenses and the cost of admission processes before the commencement of the higher studies.
- Refinancing Loans: These can be taken to repay the loans taken before and students can also choose to refinance to extend their loan tenure.
- Consolidated Loans: It covers a combined set of educational expenses including exams, tuition, books, educational equipment, travel, accommodation, deposits and insurance.
Eligibility Criteria to Get an Education Loan
The process to get a loan is generally more tedious than the domestic one. Even though different banks may have their own set of requirements but some conditions remain the same for all courses. Based on the pattern followed by most of the banks, we have curated a list of eligibility standards:
- Applicants have to be a citizen of India. PIOs and NRIs can also apply for study loans in India.
- Acceptance/offer letter by the university or college that the student is going to join.
- Candidates should have their student VISA in place at the time of loan application.
- Applicants should also show financial viability to repay the study loan.
Courses Covered under Education Loan
While sanctioning loans to students planning to study abroad, banks usually check the kind of degree students are planning to pursue. Usually, courses which offer a good ROI like Engineering, Management or MBBS are preferred by banks for sanctioning loans. Here are some degrees and specialisations for which education loans are easily provided:
| Degree Levels | Undergraduate, Postgraduate, Doctoral and Diploma Courses |
| Courses | Computer Science Engineering, Mechanical Engineering, MBA, MBBA and other Engineering courses |
Top Education Loan Providers in India
Even though many student loan providers in the Indian market offer varied options to students, some banks stand out by providing the best facilities. A few of such banks are enlisted below.
- PNB Loan
- Syndicate Bank Education Loan
- Vijaya Bank Education Loan
- ICICI Loan
- IDBI Education Loan
- Bank of Baroda Education Loan
- Canara Bank Study Loan
- HDFC Education Loan
- Allahabad Bank Study Loan
Collateral to Get an Education Loans
An important aspect of getting a loan is the ‘collateral’. Collateral are the assets or guarantees that are to be submitted to the bank in exchange for the loan amount. Collaterals are not mandatory for smaller amounts of loans but are essential to get a higher amount of loans.
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FAQs
The first step is to research various banks and their loan offerings. Compare interest rates, eligibility criteria, and loan terms before shortlisting a bank. Once you have chosen a bank, gather the required documents and submit your application.
The loan approval process usually takes 1 to 4 weeks, depending on the bank’s processing time, the completeness of your documents, and the verification process.
Yes, many banks offer online applications for education loans. You can visit the bank’s website or use their mobile app to apply, upload necessary documents, and track your application status.
Typically, applicants should be between 18 to 35 years of age. However, the age limit may vary slightly depending on the bank and type of course you plan to pursue.
Steps to get an education loan are:
Step 1: Research and compare different lenders.
Step 2: Ensure eligibility criteria are met.
Step 3: Gather required documents (academic, financial, etc.).
Step 4: Submit your application form and documents.
Step 5: Bank evaluates application and processes loan approval.
Step 6: Loan sanction and disbursement once approved.
Banks evaluate your application based on factors like the course chosen, the institution’s credibility, your academic history, co-borrower’s financial condition, and your credit score (if applicable).
Yes, a student with no income can apply, but a co-borrower (usually a parent or guardian) with a stable income is often required to secure the loan.
Yes, most banks require a co-borrower, especially if the loan amount is large or the student has no steady income. The co-borrower shares the responsibility of repaying the loan.
Yes, it’s possible. If the student has no credit history, the loan can still be approved if the co-borrower has a strong credit score and meets the bank’s eligibility requirements.
Research various loan options, understand the interest rates and terms, gather necessary documents, and ensure you meet the eligibility requirements before applying.
Common documents required include:
Proof of admission (admission letter, fee receipt)
Identity proof (Aadhaar card, passport)
Address proof (utility bills, rent agreement)
Income proof (salary slips, IT returns)
Bank statements (for the past 6 months)
Academic documents (marksheets, certificates)
The student must be an Indian citizen, between 18-35 years old, and have secured admission to a recognized educational institution. A co-borrower with a stable income is typically required.
