Education Loan Eligibility: Top Lenders, Interest Rates & How to Apply

Education Loan Eligibility in India

Are you standing at the crossroads of your educational aspirations and financial constraints? Does obtaining a student loan seem a good option but also a perplexing maze? Are you wondering where to start or what education loan eligibility is?

Let’s illuminate the roadmap to financing your education while keeping a keen eye on the intricacies of eligibility, the application process, and more. 

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Education Loan Eligibility for Students

The foremost question that needs to be answered before jumping onto anything else would be whether you qualify for a student loan. You will have to meet several prerequisites before financing your further education with an outside source. Some of the primary points for education loan eligibility in india are as follows.

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Education Loan Interest Rates

Education Loan Interest Rates of Banks

The table below gives you an overview on interest rates offered by different banks on their education loan.

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Education Loan Interest Rates of NBFCs

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Note: The interest rates mentioned above are based on current information, we suggest you check the bank's website for latest information.

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Education Loan Eligibility Calculator

After checking if you qualify for the education loan eligibility, the next step comes to calculate the EMI and repayment schedule to better plan your finances. 

One of the easiest ways to do this is using an EMI Calculator. 

Propelld’s Education Loan EMI Calculator is a user-friendly online tool designed to simplify the calculation of monthly payments for education loans. It provides a schedule that breaks down monthly payments into principal and interest components, helping borrowers understand their financial obligations better.

Let's take an example, 

Suppose you take a loan with following details: 

Loan Amount: ₹10 lakhs

Interest rate: 12% 

Tenure: 10 years

As per the calculator, your monthly EMI would be approximately ₹14,500.

This calculation allows you to plan your finances effectively. This tool also accommodates various repayment scenarios, ensuring you have a clear picture of your loan journey.

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Education Loan Eligibility: Documents Required

‍Here is a list of documents that you must submit if you are applying for an education loan: 

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Education Loan Application Process

Having gained details about the eligibility criteria for securing a student loan, the next question needing a comprehensive answer would be the relevant steps to obtain a loan. The traditional process of applying for an education loan with banks in India is carried out offline; the step-wise information is below.

‍Assess Your Financial Needs

Estimate the total loan amount required, including course fees, tuition, books, living expenses, and other educational costs.

Gather Relevant Documents

Compile necessary documentation to avoid delays. Ensure all documents meet lender requirements, as inaccuracies can lead to application rejection.

Fill Out the Application Form

Complete the loan application form, providing essential personal information such as name, age, address, course details, and financial requirements.

Cross-Check Details

Review your application thoroughly before submission. Verify all information, including academic details, identity, financial status, and co-signer information. Ensure you understand the terms and conditions.

Submit the Application Online or Offline

Once satisfied with the application, submit it along with all required documents. Keep copies for your records.

Follow Up

Stay in contact with the lender for updates on your application status. Be ready to provide any additional information if requested.

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Education Loan Eligibility for Top Banks

Given below are the  education loan particulars of  different banks. 

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Education Loan without Collateral and Coapplicant

An education loan without collateral and a co-applicant provides a viable financing option for students who may not have significant assets or a suitable guarantor. These unsecured loans are designed for those seeking to pursue higher education, particularly abroad.

1. Eligibility: Lenders typically evaluate the applicant’s academic performance, the course and institution's recognition, age, and financial stability, rather than requiring collateral or a co-signer.
2. Benefits: Such loans eliminate the risk of asset loss and simplify the application process, empowering students to independently finance their education.
3. Challenges: Applicants may face higher interest rates and potentially lower loan amounts due to the perceived risk by lenders.‍
4. Application Tips: Research various lenders, prepare necessary documents, and highlight academic strengths in your application to improve your chances of approval.

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How to Get an Education Loan After 12th?

Although you may be a student intending to secure an education loan after completing the 12th grade, there are several crucial factors you must understand. However, it's very easy to secure finances for your studies. 

Lets see the major eligibility requirements for education loan after 12th: 

Eligibility Criteria for Education Loan After 12th Class

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Can You Get an Unsecured Education Loan After 12th Class?

Students can apply for an education loan to study in India or abroad after completing 12th class. You can get a maximum of 2 crores unsecured loan with an interest rate of 10.5 to 12.5%.

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Education loan by Government

The Government of India offers support to Indian students who want to pursue higher education.  Students can get either a government education loan or help with the interest on loans they take from banks.

Here are 5 popular government education loan schemes, along with their major features and eligibility. 

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Apart from these popular student loans, you can explore the official websites of your state government. There you can get information about financial aid for students to study abroad.

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 Propelld: Offering Digital Solutions for Education Loans 

Students usually face problems like not having a credit history, cumbersome procedural formalities, and delayed approvals in the offline loaning system. However, you can brush aside such botherations with the education loan process at Propelld, which is 100% digital and quicker than the conventional methods.

Get your loan disbursed in just 3 steps: 

1. Fill the Institute and Personal Details in the Online Application
2. Hassle Free Digital KYC and Loan Approval by us. 
3. Loan Amount is Transferred Directly to the College 

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Why Propelld?

Benefits of Propelld Education Loan

FAQs About Education Loan Eligibility

Can I get a 20 lakhs education loan without collateral?

Private banks and NBFCs like Propelld may offer up to 20 Lakhs in education loans without requiring collateral, depending on the course and applicant's eligibility.

Can I get an education loan with 50% marks?

Yes, some banks do provide education loans for students who have secured at least 50% marks in their higher secondary and graduation exams.

What is the minimum salary for parents for education loan?

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.

Who can reject education loan?

If the bank is not satisfied with the applicant's academic performance, they will reject the loan application. Age Limit is an important criterion for both the applicant and the co-applicant. For unsecured education loans applicant's maximum age limit can be up to 28 years.

Who is eligible for education loan?

A graduate, postgraduate, or post-graduate credential must be the aspirant's goal. A strong academic record enables quicker loan approval. Full-time students must have a co-applicant, who may be either a parent, a guardian, a spouse, or a parent-in-law (in case of married candidates).

Is taking education loan risky?

Missed payments, student loan defaults, and taking on more debt than you can manage after graduation can all have a significant negative impact on your credit score or the credit score of your co-borrower. The worst case situation is defaulting since it means you could not pay back the lender for the loan you took out.

What are education loan eligibility criteria?

Meeting the education loan eligibility criteria is crucial, considering factors such as age, academic record, income and admission status. By fulfilling these requirements, students can increase their chances of obtaining financial aid and pursuing their dream education.

Who can apply for an education loan?

Graduate/postgraduate degree or a PG diploma. Parent/guardian or spouse/parent-in-law (for married candidates). To check education loan eligibility, candidates can use online eligibility calculators that consider factors such as the loan amount, interest rate and loan duration to determine eligibility.

How do I improve my education loan eligibility?

To improve your Education Loan eligibility, follow these steps: Maintain a strong academic record: A good academic performance enhances eligibility. Demonstrate a stable source of income: Ensure steady income, preferably from parents. Age Criteria: Applicants should be between 16 and 35 years of age.

What are the criteria for education loan eligibility in India?

Here are the criteria for education loan eligibility in India for candidates seeking education loans: You must be an Indian resident. You must have secured admission to a recognised educational institute in India or abroad. Between 18 and 35 years. Graduate/postgraduate degree or a PG diploma.

How to get an education loan?

Income proof: Six months’ bank statements, ITR, salary slips, and Form 16 of the guarantor or co-borrower. When it comes to granting an education loan, financial institutions evaluate an applicant’s eligibility very carefully. They take into account various factors before approving a loan.

How to get an education loan in India?

Let’s delve into the key steps involved and the application process of obtaining an education loan in India. Research and Selection: Begin by researching various banks and financial institutions that offer education loans in India. Compare their interest rates, loan terms, and eligibility criteria.