Education Loan Information and Eligibility

General Information

  • The rate of interest on education loans varies from one bank to another bank.
  • Apart from the course fee, other educational expenses are also covered by the education loan such as school/college fee, hostel expenses, cost of books and stationery, However it depends upon the bank which you are taking loan.
  • Education loan are offered at fixed as well as floating rate of interest rate.
  • Basically private and foreign bank charge fixed rate of interest on education loans whereas nationalized banks have been seen charging variable rate of interest on education loans.
  • A percent of amount as the processing fee is charged by the banker while applying for education loan.
  • In most cases, the entire fee for a course is not financed by the bank. A certain percent of amount which is called margin has to be paid by the applicant. The margin requirement  on the education loans are not very rigid, with the average being 5 percent for studying in India and 15 percent for studying abroad.

Eligibility Criteria

  • The applicant (he/she) should be an Indian National.
  • He/She must be Age 16-26 years else the age specified by the bank.
  • He/she should not be minor.
  • He/she must have secured admission to professional/technical courses, through entrance examination test/selection process.
  • He/she must have a good academic record.
  • He/she must have secured admission on a recognized university in India or abroad.
  • He/she should have parents/guardians with stable source of income.

Documents required

  • Mark sheet of last qualifying examination for school and graduate studies in India
  • Proof of Admission to the course
  • Schedule of the expenses for the course
  • Copies of letter confirming scholarship, if any
  • Copies of foreign exchange permit, if applicable
  • 2 passport size photographs
  • Latest six month bank statement of borrower/Parents
  • Latest two year Income tax assessment order.
  • Brief statements of assets and liabilities of borrower/Parents
  • If not an existing (funding) bank customer, proof of Identity and residence

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