The applicant should be an Indian national

He should be aged between 16 to 35 years of age

All loans require a co-applicant.

Collateral is required for all loans greater than Rs. 7.5 Lakhs.

The applicant should have a good academic track record.

He should have parents or guardians with stable source of income.

Should have applied to a recognized university in India or abroad.

Management Courses ( Full-Time + Part Time ) - Post Graduation

Engineering Courses ( Government + Private ) – Graduation

Medicine - Graduation + Post Graduation

Masters in Computer Application ( MCA/MCM) - Post Graduation

Distance Learning courses.

Fine Arts and Designing - Graduation + Post Graduation

Architecture - Graduation

Hotel and Hospitality - Graduation + Post Graduation

Agriculture - Post Graduation

Pure Science - Graduation + Post Graduation

B.A./B.Com/M.A./M.Com

Professional courses like SAP, ERP, GNIIT, and Air Hostess Training programs.


All educational loans require a co-applicant. The co-applicant can be a parent, sibling or relative. The following are the criteria for the salaried co-applicant:

Minimum age of 21 years

Maximum age of at loan maturity: 60 years

Minimum employment of 2 years and minimum 1 year in the current organization

Minimum Net Monthly Income : Rs. 10,000 p.m. for Tier 1 & Tier 2 cities (Rs. 8,000 in select cities)


The following are the criteria for the co-applicant if he is self employed:

Minimum age of 21 years

Maximum age at loan maturity: 65 years

Years in business: Minimum 3 years in current business and 5 years total business experience for professionals and 5 years continuous business experience for individuals.

Minimum Annual Income: Rs. 1 lakh for doctors, CA , CS, architects.

Business must be profit making for the last 2 years for companies and firms.

Minimum Annual Income: Rs. 1,50,000 annually for Tier 1 & Tier 2 cities.



Documents required

The following are the documents you require to provide while applying for an education loan:

Declaration confirming that no loan has been availed from other bank/institution

Letter of admission from the Institute

Letter from the Institute stating cost break up of the program

Mark sheets of all exams SSC onwards

Residence proof , ID proof , signature verification proof and age proof of applicant & co-applicant

Income documents of the co-applicant

Copies of foreign exchange permit, if applicable.

The following are the further documents required for studies abroad:

Letter from the Head of Department of the University

Visa approval papers

Travel papers

GMAT/GRE/SAT score

I-20 in case of applicant going to the USA


Kindly note that you need to provide progress report at the time of every disbursement tranche. Progress report includes mark sheets or a letter from the institute, in case the mark sheets are not available while processing the fresh disbursement tranche.



FAQs

What expenses an education loan cover?
It covers the following expenses:

Fee payable to college/school/hostel

Fees of exam/library/lab

Caution deposit / Refundable deposit asked by the institution/Building fund - supported by Institution bills/receipts

Expenses related to books, uniforms, equipments and instrument

Expenses of travel in case of studies abroad

Purchase of computers and other software necessary for completion of the course

Any other expense required to complete the course.


Do I need to spend money on paying some of the fees?
Indian banks offer 100% loan on select courses. For other courses you may have to spend 5-15 % of the total fees. However, it depends on the terms and conditions of the banks.
What is the moratorium period?
Usually repayment of the loan starts 1 year after course completion or 6 months after obtaining employment, whichever is earlier. This is called the moratorium period.
Do I need to repay anything during the moratorium period?
It depends on the terms and conditions of the bank. In some cases, interest would have to be paid during the moratorium period. However, some banks also provide a moratorium on payment of interest. However, in that case the interest is compounded quarterly and added to the principal sum for repayment. You can go for this type of education loan if you do not want to repay anything during your course period.
How I would make the repayment?
You have to repay the loan amount in equated monthly installments(EMI). It can be done by giving standing instruction to the bank, having electronic clearing services (ECS) with the bank or by giving post dated cheques to the bank.
You have to start repaying the loan if you are not able to complete the course. However, some banks may offer you a grace period, either to continue your studies or to start repaying the loan.
What is the maximum tenure of the education loan?
Maximum tenure of the education loan may be 7 years including moratorium period.
Is a co-applicant needed for an education loan?
Yes. A co-applicant is required for loan on all full-time courses. The co-applicant can be your parents, siblings, spouse or relative. Your loan eligibility is calculated on the basis of the co-applicant's income. For funding part time courses, no co-applicant is required. Kindly note that even in part-time course, having a co-applicant can enhance your loan eligibility.
How is the loan amount disbursed?
Banks normally disburse the loan amount directly to the college/institute. While applying for a loan, the bank will verify the tenure of the course and determine its total cost as applicable at that point of time. You have to submit a form to the bank every year detailing of the money required. After this process, the bank directly disburses the loan to the college or institute. In case of study overseas, banks pay in dollars to colleges directly. They charge a remittance fee in that case.