Education Loan

The cost of education is increasing rapidly and the expenditure of studying in a top reputed institution is remarkably high.

Quality Education is a must for a complete and successful life.

Benefits of Education Loan:


Low Interest rate:

- Education Loan comes under priority sector lending and Reserve bank of India has made it mandatory to lend 40 % to priority sector. This has led to availability of education loans at very low and economical price with very low interest rate.


Tax benefit:

- There is a provision made by the Government of India under Sec 80E claiming that an individual standing as a guarantor for the loan can avail the tax benefit by reducing his taxable income by the amount of interest accrued and paid on the loan in a financial year. Moreover there is no uppercap on the exemption.


Flexible payment terms:

- Many of the financial institutions have fully or partially waved the payment of equated monthly instalments at the time of the study. Generally, the student gets a year after completion of studies to find a job and then the student can start paying the monthly instalments. Thus it is very convenient for the students.


Availability of the loan even if the earning of guarantor is low:

- Education loan is one such loan which is made available for the students keeping in mind their future earning potential and not the potential of the guarantor. Thus the earning of the guarantor does not matter here. One can easily acquire the loan even if their parents are not earning or retired.

Education Loan - An Overview

In India, quality education is commended when one graduates from a top institution. The cost of education is increasing rapidly and the expenditure of studying in a top reputed institution is remarkably high. It becomes difficult for many of the deserving candidates to live their dream of studying in these top reputed institutions. Many parents who want to provide their children with the best education invest their money in different securities for a long term. In spite of all this, one may still face shortage of funds. An education loans thus help to bridge this gap of shortage and the funds required enabling the youths of India to live their dream.


The eligibility criteria that an applicant needs to fulfil for the approval of the education loan are appended below:

Particulars Eligibility
Nationality Indian
  • - Minimum- 18 years
  • - Maximum - 35 years
Qualification Pursuing Graduate or Post graduate degree
University (Applied to) Recognized in India or abroad
Income source Parents/ Guardians

Documents Required for Education Loan

When it comes to documentation of education loan there is no hassle in the paperwork. It is a simple process and can be conducted online. However the documentation requirements can vary depending upon the demands of the banks or the lending institutions.

Some of the mandatory documents a student required for the approval of a loan are:

  • - Application form with affixed photographs duly filled and signed.
  • - 2 passport size photographs
  • - Age Proof (Copy of Aadhar card/ Pan card/ Driver’s licence/passport)
  • - Residence proof
  • - Age proof (Copy of Aadhar card/ Pan card/ Driver’s licence/passport)
  • - Copy of exam marksheets of 10th or 12th Std or latest education certification
  • - Statement of course expenses
  • - Aadhar Card of the applicant and of the parent/ Guardian.
  • - Income proof (Last 6 month’s bank statements, salary slips, updated ITR of the parent or guardian, documents stating the assets or liabilities of the parent or guardian

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