Minimum Family Income Requirements for Education Loan: Pursuing higher education, whether in India or abroad, is a significant investment, but financial constraints can make it challenging. Education loans help bridge this gap by covering tuition fees, living expenses, and other academic costs.
Before applying for an education loan, it is crucial to understand the minimum family income required for education loans. Lenders, including private banks, government banks, and NBFCs, have different eligibility criteria based on income levels, repayment capacity, and credit scores. This article explores these requirements in detail to help you make an informed decision.
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Minimum Family Income for Education Loans
Different lenders have distinct policies regarding education loan eligibility. Students with strong academic backgrounds who meet the eligibility criteria can secure education loans with lower interest rates and flexible repayment terms.
One of the key factors that banks consider is the minimum family income requirement to ensure timely repayment.
Minimum Family Income Norms in Private Banks
Private banks generally have stricter income requirements compared to government banks and NBFCs. This is because private banks require simple interest payments as soon as the loan is disbursed. Since most students do not have a steady income source, banks set minimum family income criteria to assess repayment capability.
Below is a table highlighting the minimum family income requirements for education loans from different private banks in India:
| Bank | Minimum Family Income Requirement |
|---|---|
| RBL Bank | Minimum INR 20,000 per month (INR 2.4 lakhs per annum) |
| IDFC First Bank | Minimum INR 30,000 per month |
| Axis Bank | Minimum INR 37,500 per month (INR 4.5 lakhs per annum) |
| IndusInd Bank | Minimum INR 40,000 per month (INR 4.8 lakhs per annum) |
| HDFC Bank | For HDFC Salary Account Holders: Minimum INR 25,000 per month For Non-HDFC Account Holders: Minimum INR 50,000 per month |
| ICICI Bank | Minimum INR 50,000 per month (co-applicant) |
Also Read: We have compiled a list of Top Indian Banks providing Education Loans to Study in the USA. Check out our blog and familiarize yourself with how to finance your studies in the US.
Minimum Family Income Norms in Government Banks
Government banks in India provide unsecured education loans up to INR 7.5 lakhs. For loans exceeding this amount, students need to pledge collateral security, such as property, fixed deposits, or agricultural land.
To obtain a secured education loan, government banks generally do not require income proof, but having an income certificate can be beneficial. More important than income is the credit score of the applicant or co-applicant, which should ideally be above 650-700. A low CIBIL score may lead to loan rejection.
Also Read: Check out the reasons for education loan rejection with a good credit score.
Minimum Family Income Norms in NBFCs
Just like government banks, NBFCs education loans to pursue study abroad dreams are a great option. They have different income criteria compared to banks when lending loans for higher studies. Instead of focusing on family income, they evaluate the future earning potential of the applicant.
If the student is admitted to a university outside the top 200 global rankings, NBFCs may require a minimum family income between INR 25,000 to INR 30,000 per month.
To secure an NBFC education loan, a CIBIL score above 650 is recommended.
Also Read: Having a low CIBIL score but still want to secure an education loan? Check out our blog on How to Increase your CIBIL Score for better Education Loans?
Eligibility Criteria for Education Loans
Different banks and financial institutions have different eligibility criteria listed for education loan borrowers. To be eligible for education loans, you must be an Indian citizen within the 18-35 years of age bracket.
You must have secured admission to a recognized university in India or abroad to pursue undergraduate/ postgraduate/ PG Diploma courses. Some lenders ask for a good academic record while others look at the income of the parents or the co-borrower.
It means that the co-applicant must have a stable income source and a good credit source to avoid loan rejection. You must show your willingness and take the responsibility to pay back the loan. This helps in increasing your chances of securing an education loan with top Indian banks.
The table below will help you understand the eligibility criteria in a better way.
| Particulars | Eligibility |
| Nationality | Indian Citizen |
| Age | Minimum 18 yrs; Maximum 35 years |
| University Applied | Recognized University- India or abroad |
| Qualification | Pursuing graduate/ post-graduate/ or PG diploma |
| Admission Status | Confirmed |
| Income | Stable Income of parent/ guardian |
If you planning to secure education loans to pursue your study abroad dreams in the UK, check out our blog on Top Indian Banks providing Education Loans to Study in the UK.
FAQs on Minimum Family Income for Education Loan
The minimum salary required for parents varies by lender, but most banks require a minimum monthly income of INR 25,000.
If you are a working professional, the minimum salary required to apply for an education loan is around INR 30,000 per month, depending on the lender.
The applicant’s/co-applicant’s or guarantor’s minimum annual income for education should be 4.5 lakhs. However, some banks provide education loans if the family income is less than 4.5 lakhs. But, some banks also require a minimum family income of more than 4.5 lakhs.
Yes, some banks and NBFCs provide education loans without collateral, even if your parents are unemployed. However, having a co-applicant with a stable income increases the chances of loan approval.
Most lenders require a minimum CIBIL score of 650-700 for both students and co-applicants. A higher credit score improves loan approval chances and can result in lower interest rates.
Some NBFCs and international lenders offer education loans without a co-applicant, but they primarily consider the student’s future earning potential and university ranking. However, you may consider applying for education loans without collateral and co-signer.
Yes, NBFCs and some private banks assess the applicant’s future earning capacity, especially for students pursuing high-demand courses like STEM, MBA, or Medicine.
If you have secured admission to a top 200 globally ranked university, banks and NBFCs are more likely to approve loans without collateral and at lower interest rates.
Yes, for studying abroad, some lenders require a minimum family income of INR 30,000 to INR 50,000 per month, depending on the country and university ranking.
Yes, some government schemes and education loan subsidies allow students from low-income backgrounds to secure education loans with reduced interest rates and flexible repayment terms.
This was all about minimum family income for education loans. Different banks and financial institutions have varied minimum and maximum family income requirements.
Typically, individuals earning at least INR 30,000 per month are considered eligible to be named as education loan co-applicants. Lenders do consider individuals who earn lesser monthly salaries as co-applicants. However, INR 30,000 is the recommended minimum monthly salary.
To learn more about education loans, the best bank accounts for students, forex, banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
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