• Written By Gautam_K
  • Last Modified 27-06-2022

Education Loan Eligibility – Check Requirements, Interest Rate, Documents


Education Loan Eligibility – Every student who wishes to study abroad can take the assistance of education loan to fulfil their dreams. Universities abroad have high tuition fees and the cost of living is also much higher when compared to India. Thus, taking education loan becomes a requirement to fulfil your dream to study in foreign Institutions. In India, various private and government banks provide education loan to the candidates. The aspirants are required to check the education loan eligibility of the bank to apply for the same.

The candidates will need to submit the specified documents to get the loan. The range of interest rate varies for each bank. The aspirants will need to apply for the loan at the official website of the bank. The students need to satisfy the stringent eligibility criterion laid down by the bank. Read the article to know more about the eligibility of education loan.

Education Loan Eligibility: General

The students who want to study abroad can take the aid of education loan from Indian banks. The distinct interest rates provide an option to the student and their family to choose the bank for the education loan. The tuition fees and the living expense of studying in abroad are higher and not affordable for many. The loan facility has made it possible for the students to pursue their dream. Check below the general eligibility for education loan-

  1. Students having Indian nationality are eligible to apply.
  2. The aspirant must have a good academic background.
  3. The candidate must have secured admission to a recognized foreign University.
  4. The course selected by the aspirant must be technical or professional, as banks give preference to job oriented courses.

Education Loan Eligibility: Banks

There are various private banks which offer education loan to the aspirants. The eligibility criteria for each bank may differ. Hence, the candidates must check the eligibility with respect to the bank before applying for the loan. Check below the education loan eligibility of some of the private and government banks in India-

Private Bank Eligibility for Education Loan

Criteria Kotak Mahindra Axis Bank HDFC
Age No minimum age/Maximum age of 21 yearsNo age limit Between 16 to 35 years
Qualification No minimum qualification specified 50% marks in HSC or GraduationNo minimum qualification specified
Studies Abroad Graduation, post-graduation and diploma Career-oriented coursesGraduation, post-graduation and diploma
Admission Must have got admission in the foreign university.Admission in the university Must have got the admission letter

Public Bank Eligibility for Education Loan

Criteria State Bank of India Bank of India 
Age No minimum ageNo age limit 
Qualification No minimum qualification specified Completed HSC/Graduation
Studies Abroad Graduation, post-graduation, technical, job-oriented and diploma coursesGraduation and post-graduation 
Admission Must have got admission in the foreign university.Admission in the university 

Education Loan Eligibility: Interest Rates

The banks in India provide loan at various interest rates. The aspirants are required to repay the loan amount along with the interest within a given duration. The loan repayment tenure will be different for each bank. The candidates must fulfil the requirements and read the terms and conditions to understand the payment structure. Check below the rate of interest for some of the private and public bank-

Interest Rates 

Name of the Bank Interest Rate Repayment Tenure 
Kotak Mahindra Maximum up to 16%Not Specified 
HDFCMinimum-9.50%Maximum-13.32%Up to 15 Years 
Axis Repo rate-4% Varies as per the loan amount 
SBI 9.30%15 Years 
BOI8.95% p.a. -9.75% p.a.1 to 5 Years 

Education Loan Eligibility: Documents Required

The candidates will be required to submit the specified documents to avail the loan facility from the bank. The document requirement will be different for each bank. The aspirants must check the list of documents and submit it before the deadline for the loan. Check below the documents required for the education loan from some of the banks-

Name of the Bank Documents Required 

Kotak Mahindra 

Application form
2 photographs
Proof of identity
Proof of residence 
Signature verification from the bank

Axis Bank 

KYC documents
Bank Statement / Pass Book of last 6 months
Optional – Guarantor Form
Copy of admission letter of the Institute along with fees schedule
Mark sheets / passing certificates of S.S.C., H.S.C, Degree courses
HDFC Bank Institute admission letter with fee breakup
Age proof
Signature proof
Residence proof
Income documents
Latest photograph 

State Bank of India 

Mark sheet of 10th, 12th, Graduation (if applicable), Entrance Exam Result
Proof of admission to course Schedule of expenses for course
Copies of letter conferring scholarship, free-ship, etc.
Gap certificate, if applicable (self-declaration from student for gap in studies)
Passport size photographs of Student / Parent / Co-borrower / Guarantor (1copy each)
Asset-Liability Statement of Co-applicant / Guarantor (Applicable for loans above Rs 7.50 lacs)

Bank of India 

Address proof
Identity proof
Income details HSC or SSC Marksheet 

Education Loan Eligibility: How to Apply?

The students meeting the education loan eligibility can apply for financial aid. The aspirants will need to visit the bank website to apply for the loan. The candidates must keep the required documents ready for the verification. The aspirants are advised to read the terms and conditions before applying for the loan facility. The candidates must also check other chargers like processing, EMI return charges etc. to choose the best bank for education loan.

Frequently Asked Questions

Q1. How much education load can I get?
Ans: The amount of education loan varies from bank to bank.

Q2. Can education loan be cancelled?
Ans: Yes, education loan can be cancelled in cases of ineligibility, incomplete documents and many other cases.

Q3. What is the education loan eligibility for students?
Ans: The eligibility of education loan will be different for each bank. However, Indian nationality and educational qualification are similar for all.

Q4. What is the minimum qualification required to apply for an education loan?
 Ans: The candidate must have completed HSC/SSC to apply for an education loan.

Q5. Is the rate of interest similar to all private banks?
Ans: No, the rate of interest differs for each private bank.

We hope that this information on Education Loan Eligibility has helped you. If you have any queries then you can ask us and we will answer you. Use the comment section below for any queries and comments.

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