.avif)
Education Loan After 12th
Higher education is a gateway to better career opportunities, but the rising cost of tuition can be a major hurdle. For students who have just completed their 12th grade, education loans provide a financial lifeline to pursue their dream courses without burdening their families.
How to Get an Education Loan After 12th?
You can apply for an education loan to cover tuition, living expenses, study materials, and more. Loans are available for both domestic and international studies, with options for secured and unsecured loans. Here's a quick breakdown:
1. Types of Loans
- Domestic: Up to ₹40 lakhs (unsecured) or ₹1.5 crores (secured).
- International: Covers up to ₹1 crore for tuition, travel, and more.
2. Eligibility
- Age: 18–35 years
- Academic: Minimum 50% in 12th grade
- Co-applicant: Required with stable income (₹6 lakhs+ annually).
3. Documents Required
- Academic records, ID proof, admission letter, co-applicant income proof, and more.
4. Repayment
- Moratorium period: Course duration + 6–12 months.
- Tax benefits: Interest payments deductible under Section 80E.
Steps to Apply:
- Research loan options and compare interest rates, repayment terms, and fees.
- Gather all required documents.
- Apply online and track your application.
Education loans can make higher education accessible. Start planning early to secure the best loan for your needs.
Get your Loan Disbursed 10 times Faster than Banks. Apply Now.
Education Loan Categories in India
After finishing 12th grade, students in India have access to various education loan options designed to align with their academic ambitions. Below, we break down the main types of loans available.
Loans for Studies in India
Domestic education loans are available for undergraduate and diploma courses within India. These are offered in two types:
For detailed repayment terms and schedules, refer to the repayment section.
Loans for International Studies
Loans for studying abroad cover the higher costs associated with international education, typically ranging from $48,000 to $120,000 (₹40 lakhs to ₹1 crore). These loans usually include:
- Tuition fees
- Living expenses
- Travel costs
- Study materials
- Health insurance
- Visa fees
For more details on funding international education, check out our guide on Education Loan for Abroad Studies.
Course-Specific Loans
Some loans are tailored for specific academic fields, offering unique terms and benefits. Examples include:
- Education loan for Btech: Interest rates start at 8.5% with loans covering up to 100% of education costs.
- Education loan for MBBS: Interest rates for education loans for MBBS programs start at 8.55% per annum, with loans covering up to ₹50 lakh without collateral and up to ₹2 crore with collateral
- Education Loan for MBA: Loans for MBA programs offer higher limits and flexible repayment options to accommodate diverse fee structures and career paths.
These specialized loans are designed to meet the unique financial requirements of specific fields, complementing standard domestic loan options
Flexible Criteria for Co- Applicant Eligibility. Check Propelld Education Loans..
Education Loan After 12th Eligibility Requirements
Securing an education loan after completing 12th grade depends on meeting specific eligibility criteria.
Education and Age Limits
Here are the basic academic and age requirements for education loans:
Strong academic achievements, like GRE scores above 300, can improve your chances of getting an unsecured loan of up to Rs. 50–60 lakhs. Additionally, the program and institution you choose play a major role in determining your eligibility.
Approval Based on Student Potential. Easy Education Loans from Propelld. Do Check your Eligibility.
Approved Programs and Schools
The institution and program must meet certain standards, such as:
- Recognition by UGC, AICTE, or similar regulatory bodies
- Full-time courses with clear career opportunities
- Programs focused on professional, technical, or vocational skills that improve employability
For international students, admission to a recognized foreign university is required before the loan process begins. Check our guide on education loan for abroad studies for more details. Once your program is approved, having a qualified co-applicant further strengthens your application.
Co-Applicant Guidelines
Co-applicants play a crucial role in loan approval. Here are the key requirements:
- Income: The co-applicant must have an annual income of over Rs. 6 lakhs
- Relationship: Typically, the co-applicant is an immediate family member or close relative
For more details, check out our guide on who can be co-applicant for education loan.
Minimal Documentation. Higher Chances of Approval. Easy Online Processes. Check Your Eligibility.
Documents Required for Education Loan Application
Once you confirm your eligibility, the next step is gathering all necessary documents. Having everything ready can speed up the approval process for your education loan after completing 12th grade.
School Records and Admission Proof
Your academic and admission-related documents are crucial:
- Mark sheets for 10th and 12th grade exams
- School leaving certificate
- College admission or offer letter
- Fee structure provided by the institution
- Certificate indicating course duration
- Details of any scholarships
If you're planning to study abroad, additional documents like your passport and visa will be required. Check out our guide on education loans for abroad studies for more details.
Personal Identification Documents
You'll need valid ID and address proof, as well as a few other personal documents:
Are you parent of a JEE/NEET aspirant?
Need guidance on funding your MBA College Fees?
Once these are ready, focus on gathering financial documents to strengthen your application.
No Collateral Required. Approval Based on Student Potential. Check Your Eligibility
Income and Financial Documents
The financial papers required will vary depending on whether your co-applicant is salaried or self-employed.
For Salaried Co-applicants:
- Salary slips from the last 3 months
- Form 16 or Income Tax Returns (ITR) for the past 2 years
- Bank statements showing salary credits (last 6 months)
- Details of assets and liabilities
For Self-employed Co-applicants:
- Proof of business (GST Certificate, MSME Registration, etc.)
- Bank statements for the last 6 months
- ITR for the past 2 years
- Profit and Loss statement
- Certificates of professional qualifications
Different banks may have specific requirements. Refer to our guides on SBI education loans for studying abroad and PNB education loans. For a full checklist, visit our detailed guide on documents required for education loans.
Start collecting both original documents and digital copies (preferably in PDF format) at least 2–3 months before applying. Proper preparation can make the process much smoother.
Get your Loan Disbursed 10 times Faster than Banks. Apply Now.
How to Apply for Education Loans? Step by Step Process.
Submit your education loan application online using digital verification and e-signatures for a smooth process.
Compare Loan Options
Before applying, take time to research and compare loan providers to ensure you get terms that suit your needs. Here are key factors to consider:
For specific programs, check out options like Bank of Baroda education loans or HDFC education loans. Once you've compared your options, proceed with the online application.
Application Submission Steps
Here’s how to complete your application online:
1. Pre-Application Preparation
Gather and scan all necessary documents in PDF format. Make sure they are clear and meet file size requirements.
2. Online Application Process
Complete these steps:
- Fill in your personal details on the application form.
- Upload academic records and proof of admission.
- Provide financial documents and co-applicant details (if applicable).
- Submit collateral information for secured loans.
- Double-check all details before submitting the form.
3. Initial Verification
The lender will verify your documents, including:
- Identity proof (e.g., Aadhaar, PAN)
- Academic credentials
- Income details
- Course and college eligibility
Once submitted, your application moves into the processing stage.
Instant Approval, Hassle-Free Process – Secure Your Education Loan in as low as 2 Days!
Loan Processing and Payment
The approval process involves several steps:
Stay proactive by responding to document requests quickly, tracking your application status, and keeping in touch with your loan officer.
How to Increase Approval Chances of Your Education Loan?
Getting an education loan after 12th grade involves careful planning and attention to key factors that lenders consider.
Academic Performance
Your academic record plays a big role in loan approval. Consistently strong grades and high scores in key subjects can make you a lower-risk borrower.
Highlight your achievements, including standardized test results, to stand out. Good academic performance might also help you qualify for government-subsidized loan programs with better terms, like reduced interest rates.
Additionally, choosing a college or university known for strong career outcomes can further support your application.
School Selection
Choosing the right institution can significantly impact your chances. Here's why:
Make sure the institution you select is on the lender’s list of recognized schools. You can usually find this information on the lender's website or by contacting their customer service team.
Security and Co-Applicant Options
Your financial backing is just as important as academics and school choice. A strong co-applicant can enhance your application by:
- Adding financial stability to your profile
- Improving your creditworthiness
- Providing proof of additional income
- Increasing the overall security of your application
Offering collateral, such as fixed deposits, property, or insurance policies, can also make your application stronger. For more details on co-applicant eligibility, check out our article on Who Can Be a Co-Applicant for Education Loan.
Don't Let Fees Hold You Back! Get Hassle Free Education Loan from Propelld Today!
Education Loan Repayment and Tax Benefits
Payment Terms and Grace Period
Knowing how repayment works is essential when dealing with education loans. Here’s an overview of typical repayment terms:
(For more details, check our guide on the education loan moratorium period.)
These terms are designed to ease the transition from studying to managing your finances.
Section 80E Tax Deductions
Education loans come with added perks, like tax benefits under Section 80E. Here’s what you should know:
- 100% Interest Deduction: The entire interest paid on your loan qualifies for tax deductions.
- No Limit on Amount: Unlike many other tax benefits, there’s no cap on the deduction amount.
- Eligibility Period: You can claim this benefit for up to 8 years or until the interest is fully paid, whichever comes first.
These deductions apply to loans taken for higher education, professional courses, and vocational studies.
Make sure to keep detailed records of all interest payments for tax filing purposes. For a deeper dive into this topic, visit our guide on education loan tax benefits under Section 80E.
These repayment options and tax benefits are designed to make your education loan experience as manageable as possible.
Your Partner in Education. Enjoy Quick, Hassle-Free Student Loans with a Fully Digital Process.
Wrapping It Up
Securing an education loan after 12th grade requires careful preparation and attention to detail. To improve your chances, focus on these key areas:
- Strong Academic Record: Good grades show lenders your potential and reliability.
- Organized Documentation: Gather and submit all required paperwork 2-3 months before your fee deadlines to avoid delays.
- Choosing the Right Co-applicant: Opt for a parent or guardian with a stable income and solid credit history.
Don't forget, under Section 80E, you can claim tax deductions on interest payments for up to 8 years, which can ease the financial burden of higher education.
For more specific advice, check out our detailed guides on documents required for education loans and choosing a co-applicant. With thoughtful planning and preparation, you'll be well-equipped to secure the funding you need for your educational goals.
Why Propelld?
Propelld offers easy and flexible education loans with quick approval and low interest rates. It provides customised repayment options, making higher education more accessible without financial stress.
The following are the primary benefits of Propelld.
.png)
.png)
.png)
.svg)
