Eligibility Criteria For Education Loans: Know All About It Here!

Eligibility Criteria For Education Loans
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Many students apply for education loans each year to accomplish their dream of studying at a top-grade university. An important aspect to know about education loans is their eligibility criteria. Every financial institution keeps an eligibility criteria for availing education loans. While the criteria generally differ from institution to institution, this blog will help you understand the basic eligibility criteria and other details that students must know. Let’s read the blog to understand it better!

Education Loan Eligibility

Students must know about the education loan eligibility guidelines and qualify the same to be able to apply to their preferred money lender. The eligibility criteria for education loans differ from bank to bank. Even for different government education loan schemes the eligibility criteria vary depending upon the scheme. However, a few common factors that are taken into consideration by all lending institutions include:

  • The student should be an Indian national.
  • The applicant must have a good academic record.
  • If the applicant is under 18, then his or her parents must apply for the loan on behalf of the student. The co-applicant must have a proof of steady source of income.
  • The student must have received admission to a reputed university in India or abroad.
  • The candidate’s age must fall within the age bracket of 16 to 35 years during loan application. 
Education Loan SchemeAcademic RequirementCategoryCourse
E-Samaj Kalyan Gujarat Education LoanMust have secured 60% or above in class 12thScheduled Castes, Developing Castes, Economically Weaker SectionsUndergraduate, Post Graduate, PhD programs of technical and professional streams.
Himachal Pradesh Mukhyamantri Gyandeep YojanaStudent must have passed class 12th examinationThe student must be a native of Himachal PradeshStudents must be willing to take admission to a professional or technical course.
Vidya Lakshmi Portal Education LoanThe candidate must have completed 10+2 or any equivalent qualificationStudents belonging to any category can applyStudents can take loans for Undergraduate, Postgraduate, PhD courses, etc.

Also Read: Documents Required for Education Loan

Additional Eligibility Criteria For Education Loan

Certain lenders and education loan schemes follow additional eligibility requirements that students must follow. To understand it better let’s look at a few of such eligibility requirements:


To avail of educational loans under state-specific schemes, the applicant must be a native of that state. For example, to apply for an education loan under the E-Samaj Kalyan Gujarat Education Loan Scheme, you have to be a native of Gujarat.

Course Requirements

Certain education loan schemes like the KBL Vidyanidhi Quick Education Loan Scheme specifically mention the list of eligible courses. A student can only apply for the loan if his course of study comes under this scheme’s approved eligible courses. Furthermore, a few loan schemes only offer loans for professional and technical courses. You must check with your lender if your course is eligible for a loan or not.

Specific Categories

Additionally, certain schemes are designed for specific categories of students like Other Backward Classes (OBCs), Scheduled Castes (SCs), Economically Weaker Sections (EWSs), etc. You can only apply for these schemes if you belong to the eligible categories as mentioned in the schemes.

Further Read: Latest RBI Regulations on Credit Report 

FAQs on Eligibility Criteria for Education Loan

Who is eligible for an education loan?

Students who have secured admission to a higher education course in recognised institutions in India or abroad, through entrance tests or merit-based criteria or students who have secured admission to a reputed course. Banks also ask for documents displaying the regular income of the co-applicant.

Can I get an education loan with 50% marks?

Most banks provide education loans to students who have secured at least 60% marks in their class 12th examination. However, you need to check with your respective bank if you are eligible for a loan if you have secured 50% marks or less.

Can students from low-income families get an education loan?

Yes, there are special government schemes that provide loans to students from low-income families. A few examples of such schemes are Dr. Ambedkar’s Scheme of Interest Subsidy on Education Loan and E-Samaj Kalyan Gujarat Education Loan Scheme.

What is the maximum amount that you can take under education loans?

The limit of the loan depends on the bank or the scheme you are applying for. For example, if you apply through the Vidya Lakshmi portal then some banks provide education loans from INR 4 Lakhs to INR 1.5 crores. However, this does not mean everyone is eligible for it. Students must check what are the requirements before applying.

What are the requirements for student loans in India?

A student must have secured admission to a reputed university to apply for a loan. A student also needs to be an Indian national and must be above 16 years of age. 

Hope this blog helped you understand the eligibility criteria for education loans. Students must compare the eligibility criteria before applying for education loans and must read the terms and conditions carefully. If you have any questions, feel free to ask them in the comments section below.

To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.

Additional Reads
Impact of Loan Restructure on Credit Score
Education Loan Restructure: Check All Major Details Here
How To Convert Secured Loans To Unsecured Loans?

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