Education Loan Eligibility (2025): How to Check & Apply

Education Loan Eligibility in India (2025)

‍Planning to fund your higher education but unsure if you qualify for a student loan? Understanding education loan eligibility in India is the first step toward securing the right financial support for your studies whether in India or abroad.

This comprehensive guide covers everything from basic eligibility criteria to government schemes, collateral-free options, and how Propelld simplifies the process with flexible eligibility and fast approvals.

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By the end of this blog, you will know

While age, institute and credit score are the majorly known requirements, they are not all for an education loan. Read on for an exhaustive list of eligibility requirements.
Know the eligibility requirements for government schemes and for loans without collateral.
Know how to check your eligibility for education loan and how to calculate EMIs through our easy to use EMI calculator.

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‍What is Education Loan Eligibility?

Education loan eligibility refers to the set of parameters that determine whether a student qualifies for financial assistance. These factors vary across lenders but generally include academic performance, admission status, course type, age, and co-applicant income.

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:

Eligibility Criteria	Details
Chosen Course	- Eligibility may vary based on course type (undergraduate, graduate, postgraduate, doctoral, specialised). - Check with lenders for financing options and specific criteria related to your course.
Applicant’s Nationality	- Eligibility can differ based on nationality; lenders may favour citizens or permanent residents. - International students may face additional challenges and should research suitable loan options for non-citizens.
Age and Co-Signer	- Age requirements vary; minors usually need a co-signer. - Verify minimum and maximum age limits for eligibility.
Academic Institute	- Some universities have partnerships with lenders for better loan terms. - Enroll in recognized institutions; lenders may provide lists of approved schools for financing.
Academic Performance	- Some lenders may consider GPA, specific scores, or certifications. - Good academic performance can enhance loan eligibility; keep relevant documents ready for verification.
Financial Factors	- Lenders assess the applicant's financial background to determine repayment capability.
Credit History	- A strong credit history is preferred; limited or no credit history may affect eligibility. - Co-signers can help improve approval chances if the applicant lacks credit.
Income Prospects	- Lenders evaluate current financial status and future earning potential. - Co-signer’s income may also be assessed if the student’s income is not applicable.
Debt-to-Income Ratio	- This ratio is a critical factor for lenders to gauge the ability to handle additional debt. - Understanding the calculation can help in meeting eligibility requirements.

For students wondering about education loan eligibility after 12th in India, here’s a complete guide on how to apply, which documents are needed, and which banks are more likely to approve loans early on read more in this education loan after 12th blog.

When we talk about eligibility, Propelld provides hassle-free education loans with easy documentation and flexible eligibility. For example, talking about co applicants, we consider not just parents but also grandparents and our parents’ siblings as co applicants. We do make every effort not to reject your loan.

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Know the list of documents required to apply for an education loan.

Can I get an education loan if my co-applicant doesn’t have ITR or stable income?

Yes. Some NBFCs and digital lenders like Propelld consider alternative income proofs such as rental income, pension, or business cash flow if formal ITRs are unavailable.

Do lenders check academic backlogs when evaluating education loan eligibility?

Yes, especially for technical or management courses. However, if you have strong current grades or admission to a reputed college, most lenders overlook backlogs.

‍How to Check Your Education Loan Eligibility Online

You can quickly check your eligibility for an education loan through Propelld’s digital process:

Step 1: Visit Propelld’s official Education Loan Page
Step 2: Select ‘Check Eligibility’
Step 3: Enter your course, institution, and co-applicant details
Step 4: View customized loan offers
Step 5: Apply online — get approval within 7 days

With Propelld, you can even get 100% of your education fees financed with no collateral required. Do check our margin money policy for complete details.

Pro Tip: You can instantly check your eligibility using the Propelld Education Loan Eligibility Check- it takes less than 2 minutes.

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Check Your Education Loan Eligibility in 2 Minutes

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Education Loan Eligibility Calculator

After checking your eligibility, the next step is 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.

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.

Do check out our interest rates slabs as per profiles, APR, reducing balance vs flat rate and some worked examples on interest calculation, on our Interest Rate Policy Page.

How to Improve Your Eligibility for an Education Loan?

To ensure that students receive financial aid, banks are vigilant while evaluating a candidate's eligibility. The general academic standing of the applicants, their intended course of study, and their present admission status are taken into account before authorizing a loan.

Here are a few steps that can help you improve your eligibility for an education loan:

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

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Got a low CIBIL Score? You can still get a loan. Know how to get an education loan with a low CIBIL Score.

Documents Required for an Education Loan

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

Document Category	Details
Educational Certificates and Admission Documents	- Academic qualifications (mark sheets or certificates for HSC, SSC, Graduation, or Post Graduation). - Admission letter from the educational institution. - Schedule of tuition and other fees.
Personal Identification/KYC Documents	- Proof of identity (Aadhaar card, PAN card, Voter card, Passport, Driving licence). - Proof of address (Voter ID, utility bills, rent/lease agreements, Aadhaar card, Passport).
Proof of Income	- For salaried individuals: Employee ID Card, Salary Certificate, recent salary slips, income tax returns. - For self-employed individuals: Proof of turnover, balance sheets, business ownership proof, income tax returns.
Banking Documents	- Recent bank statements (last 6 months) or salary credit statements. - For NRI applicants: Additional statements for NRE/NRO accounts.
Documents Required from Students	- Entrance exam results and proof of admission. - Statement detailing the cost of study and expenses, along with the college/course prospectus.
Documents Required from Co-applicants/Guarantors	- Personal identification and residence proof. - Income proof (salary slips, income tax returns, business financial statements). - Property or security documents if collateral is involved.
Vidya Lakshmi Portal Details and Cheque	- Details related to the Vidya Lakshmi Portal, if applicable. - A cheque for processing fees or initial payments, if required.

Do check out the complete list of documents required to secure an easy education loan.

Can you believe Propelld can process your loan in as low as 4 documents!

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‍Minimal Documentation. Higher Chances of Approval. Check Your Eligibility.

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‍Education Loan Eligibility for Top Bank

Given below are the education loan particulars of different banks.

Bank	Education Loan Details
SBI	Loan upto INR 1.50 Crores Minimum loan amount: Above INR 7.50 lakhs Upto 15 years repayment through EMI Library/examination/lab fee Covered Travel costs/passage money for studying abroad Processing charges: INR 10,000 for every application
ICICI Bank	Interest rate: 9.85% onwards Loan amount: Upto INR 2 crore Eligibility: Minimum age should be 16 and maximum should be 35, Good academic record, Completed Class 12 or Diploma Expenses covered: College fees, exam/lab/library fee, travel costs/passage money for studying abroad, books and equipments, computer costs covered if required by the course
PNB	Available for technical/professional courses/postgraduation courses (MCA, MBA, MS, etc.), courses by CIMA London, CPA in USA etc, Degree/Diploma programmes Expenses covered: College fees, exam/lab/library fee, travel costs/passage money for studying abroad, books and equipments, computer costs covered if required by the course Repayment: Maximum upto 15 years
Bank of Baroda	No processing costs upto INR 7.50 lakhs Free debit card Zero documentation charges No security up to INR 7.50 lakhs Loan up to INR 15 lakhs
UCO Bank	Maximum INR 20 lakhs For studying abroad margin set is 15% No processing charges involved Repayment period set is 15 years
Federal Bank	Loan amount up to INR 20 lakhs Expenses covered: College fees, exam/lab/library fee, travel costs/passage money for studying abroad, books and equipments, computer costs covered if required by the course Repayment period set is 15 years
Axis Bank	Minimum loan amount: INR 50,000 Unsecured loan amount: Upto INR 75 lakhs Expenses covered: Cost of studying, hostel charges, books charges, etc. Pre-admission sanction letter issues Eligibility: Minimum age is 18 years, Possession of minimum 50% marks in HSC and graduation, admission obtained into career-oriented programmes Repayment period set is 15 years
Canara Bank	Courses eligible: Master degree under STEM courses Expenses covered: Tuition fees, cost of living, passage money

For a deeper comparison, read: Best Education Loans in India and Interest Rates (2025)

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Education Loan Eligibility without Collateral and Coapplicant

‍Students without significant assets or guarantors can still apply for unsecured education loans.

Eligibility:

Strong academic and admission profile
Recognized course/university
Stable co-borrower income or future earning potential

Benefits:

No risk of asset loss
Faster approvals

Challenges:

Slightly higher interest rates
Lower sanctioned amount

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Check Propelld’s Collateral-Free Education Loan Options

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Can I get an education loan without a co-applicant if I have a strong GRE/GMAT score?‍

Yes. Many lenders consider top global admit + high standardized test scores as indicators of repayment potential and may waive co-applicant requirements

Do unsecured education loans have shorter repayment periods?

Usually yes. Unsecured loans often come with 7–10 year repayment terms versus 10–15 years for secured ones, depending on loan amount and lender policy.

Can You Get an Education Loan Without Collateral or a Co-Signer?

Reader Insight (from a Reddit Discussion)

A user recently shared that his 23-year-old friend, admitted to a reputed German university, needed a ₹10–12 lakh loan but faced repeated rejections. No property for collateral, and her retired father couldn’t qualify as a co-applicant. He asked, if it is really impossible to get an education loan without a guarantor or collateral.

As discussed above also, unsecured education loans are possible, especially through NBFCs and fintech lenders who assess your profile more holistically than traditional banks. Here are a few factors that can make this task easier:

1. Focus on Academic & Admission Strength

NBFCs and new-age lenders evaluate your academic record, university ranking, and future earning potential rather than depending only on your family’s assets. A strong academic and admission profile can significantly improve approval chances.

2. Choose the Right Lender Type

Traditional banks mostly require collateral or a financially strong co-applicant. In contrast, NBFCs like Propelld assess your academic merit, employability, and course ROI (Return on Investment) to decide your eligibility.

3. Understand the Trade-offs

While unsecured loans offer flexibility, they come with:

Slightly higher interest rates than secured loans.
A lower sanctioned amount in some cases.

Yet, the upside is significant too: no asset risk, quicker approval, and simpler documentation.

4. Pro Tip: Strengthen Your Profile

If you can, add a co-applicant with a modest but stable income (such as a pensioner parent). Even partial income stability can positively influence the lender’s decision.

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

Criteria	Description
Citizenship	The applicant must be an Indian citizen.
Completion of Class 12th	The student should have completed their Class 12th examination from a recognised board or institution.
Admission to Recognised University	The applicant must have secured admission to a recognised university or college for further studies.

Do check the major eligibility requirements for education loan after 12th.

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%.

Government Education Loan Schemes

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.

Scheme Name	Features	Eligibility
Vidya Lakshmi Portal	Centralised platform for education loans. Access to multiple lenders and loan options.	Indian citizens, enrolled in recognized courses, aged 18 or above.
Gujarat Government Education Loan for Studying Abroad	Subsidised interest rates, loan for tuition fees, and living expenses.	Gujarat residents, students pursuing higher education abroad.
Education Loan Scheme of the NBCFDC	Loans for vocational courses, skill development, and higher education.	Members of minority communities, age between 18-35 years.
Padho Pardesh Scheme	Interest subsidy for students pursuing higher education abroad.	Eligible students from economically weaker sections.
Dr. Ambedkar Central Sector Scheme	Financial assistance for students from Scheduled Castes for higher education.	SC students, minimum 50% marks in previous examinations.

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:

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

Do check out our service level standards and commitments on our SLA Policy Page.

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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.

Who is eligible to apply for an education loan?‍

Indian students aged 18 or above who have secured admission into a recognized course in India or abroad are generally eligible to apply.

Is a co-applicant required for an education loan?

Yes, most lenders require a co-applicant, such as a parent or guardian, who has a stable income and good credit history.

Can education loans be taken for studying abroad?‍

Yes, education loans can be availed for international courses, provided the institution and program are approved by the lender.

What types of courses are covered under education loans?

Loans are typically available for undergraduate, postgraduate, diploma, and professional certification programs from recognized institutions.

Does the co-applicant’s credit score affect loan approval?

Yes, the co-applicant’s credit history and financial stability significantly impact the loan approval process and interest rates.

Can students with low academic scores still get a loan?

Yes, loan approval is based on multiple factors including course prospects and the co-applicant’s profile, not just academic performance.

Is student income necessary for loan eligibility?

No, the student’s income is not mandatory. Lenders usually assess the co-applicant’s income for repayment capacity.

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

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