How to Get Education Loan in India – Easy Step-by-Step Guide

education loan in India: Education gives us new skills and helps us get better work. However, expensive schools or colleges do exist. Don’t worry! You have the option to work with banks. That kind of help is called an education loan.

Let’s find out the steps to applying for an education loan in India simply.

What is an Education Loan?

When you take out an education loan, a bank will give you the cash to help you pay for school. You can take your time before you repay any loan. You only have to pay once you graduate from your program.

Who Can Get an Education Loan?

Anyone who is a student and wishes to study in India or abroad and has received college or university admission, can seek a student loan.

Your parents or one of your family members needs to sign off on your loan. The term applied here is co-applicant or guarantor.

What Can You Use the Loan For?

• Tuition Fees

• Hostel or Rent

• Books and Study Material

• Laptop or Computer

• Travel (if studying abroad)

• Exam Fees and Library Charges

Top Banks That Give Education Loan in India

• State Bank of India (SBI)

• Punjab National Bank (PNB)

• Bank of Baroda

• Canara Bank

• Axis Bank

• ICICI Bank

• HDFC Credila (Private lender)

Important Documents You Need

• Admission Letter from the college

• Marksheets of last exams (10th, 12th, Degree)

• ID proof (Aadhaar, PAN)

• Address proof

• Income proof of your parents (salary slip or ITR)

• Passport (if going abroad)

• Fee structure from the college

• Bank statement of last 6 months

Secret Tip Most People Don’t Know

Some banks don’t need collateral (security) for loans under ₹7.5 lakhs. These are called non-collateral loans. If your college is in the bank’s premium institute list, you get easy approval and lower interest.

Step-by-Step: How to Apply for Education Loan

1. Choose the Right Bank – Compare interest rates and repayment time.

2. Check Your Eligibility – Some banks require 60% or more marks.

3. Collect All Documents – Keep everything ready before visiting the bank.

4. Visit the Bank or Apply Online – Many banks have online portals now.

5. Talk to the Bank Manager – Ask about offers or schemes like subsidy.

6. Get Approval – Bank checks your documents and gives you a letter.

7. Get the Money – Money is given directly to the college or university.

Interest Rates (2025)

Banks charge between 8% to 13% interest, depending on:

• Your course

• The country

• Your co-applicant’s income

• Collateral given

Government banks often have lower interest than private ones.

Government Subsidy Schemes

Here’s something you may not know:

If your household income is under ₹4.5 lakhs, the Central Scheme for Interest Subsidy (CSIS) lets you study with 0% interest. Therefore, you don’t have to spend as much.

When Do You Start Repaying?

Loan can be repaid in 7 to 15 years depending on the bank.

Mistakes to Avoid

• Don’t hide any information from the bank

• Don’t delay your EMI payment

• Don’t take loans from unknown websites

• Don’t ignore the fine print – always read the terms

Final Advice (Bonus Tip)

Let your bank know as soon as you get a job offer, even if you haven’t finished your studies. At times, banks will either lower your interest or let you pay your loan amount ahead of time with no added fees. In addition, don’t forget to ask for the Section 80E tax benefit on education loans which may help you reduce your income tax.

Conclusion

Education loans in India are accessible as long as you know what to do. Pick a good financial institution, ensure your documents are in order and enquire about additional offers. Athletes sometimes lose the ability to get a loan because they haven’t asked for one. You now hold information that most people miss.

Go study, grow, and shine!