Why Education Loans Matter in India
For thousands of Indian students, higher education—especially abroad or in professional courses—requires significant financial support. Scholarships can cover part of the expense, but education loans remain the most reliable option to bridge the funding gap.
Education loans in India typically cover:
Tuition and exam fees
Hostel or mess charges
Study material and equipment costs
Travel expenses (for overseas study)
Steps to Apply for an Education Loan in India
- Compare Banks and Their Loan Schemes
Public banks like SBI and Canara Bank usually offer lower interest rates, while private banks and NBFCs such as HDFC Credila and Axis Bank provide faster approvals with flexible repayment.
👉 Tip: Always check RBI or AICTE circulars for updated loan terms before finalizing a bank.
- Check Eligibility Before You Apply
Age: 16–35 years (varies by bank)
Admission in a recognized institution (India or abroad)
Co-borrower (parent/guardian) with stable income
Collateral may be required for loans above ₹7.5 lakh
- Prepare the Required Documents
Here’s a quick checklist:
| Document Type | Secured Loan | Unsecured Loan |
|---|---|---|
| ID & Address Proof (Aadhaar, PAN | ✅ | ✅ |
| Admission Letter from Institution | ✅ | ✅ |
| Academic Records (10th/12th, UG/PG) | ✅ | ✅ |
| Income Proof of Parent/Co-borrower | ✅ | ✅ |
| Collateral Proof (property/FD/insurance) | ✅ | ❌ |
Missing or incomplete paperwork is the number one reason for loan rejection.
- Submit Your Application
You can apply:
Online through bank portals (fast but requires scanned documents).
Offline by visiting the nearest branch.
Make sure all fields are accurate—any mismatch in details can delay processing.
- Loan Verification and Approval
The bank will:
Verify academic admission
Check credit score and co-borrower income
Evaluate collateral (if applicable)
Timeline: usually 15–30 working days.
- Sanction and Disbursement
Loan sanction letter issued after approval.
Funds are disbursed directly to the educational institution.
Some banks provide partial disbursement for living expenses.
Common Mistakes to Avoid
Applying without checking eligibility.
Submitting incomplete or outdated documents.
Ignoring repayment terms and moratorium clauses.
Choosing a bank only for low interest, without checking hidden charges.
Which Bank is Best for Education Loan in India (2025)?
SBI Scholar Loan Scheme: Reliable, lower ROI, wide coverage.
Canara Vidya Turant Loan: Quick approvals.
HDFC Credila: Flexible repayment, customized overseas loans.
Axis Bank Education Loans: Mid-range ROI, easy processing.
👉 Best choice depends on your course type, loan amount, and repayment capacity.
Repayment Rules You Should Know
Interest Rate: 8% – 12% (public banks lower).
Moratorium: Course period + 6–12 months.
Repayment Tenure: Up to 15 years.
Pro Tip: Start repaying interest during moratorium to reduce the total burden.
How Scholarlify Can Help You
Browse scholarships : Reduce your loan requirement.
Mentorship for loans and SOPs : Get expert help in preparing documents.
Dashboard to track : Monitor loan and scholarship status.
Scholarlify blog : Learn strategies to fund your education smartly.
FAQs
Q1. What are the documents required for an education loan in India? Admission letter, KYC, income proof, academic records, and collateral (if applicable).
Q2. Which bank is best for an education loan in India? SBI for affordability, HDFC Credila for flexibility, Axis for quick processing.
Q3. Can I get an education loan without collateral? Yes, unsecured loans are available up to ₹7.5 lakh, depending on the bank.
Q4. How much loan can a student get in India? Up to ₹20–25 lakh for domestic study and ₹40 lakh or more for study abroad.
Q5. What expenses are covered under an education loan? Tuition fees, hostel, travel, books, and in some cases, laptops and equipment.
Q6. What is the typical repayment period? Between 7–15 years depending on loan type and bank policy.
Conclusion
Applying for an education loan in India is straightforward if you follow the right process—compare banks, check eligibility, prepare documents, and apply on time. The right choice of bank can save you lakhs in interest. Most importantly, combining scholarships with loans ensures financial relief.
With Scholarlify, students get the dual advantage of scholarship search and mentorship for loans—making higher education accessible and affordable.
About Scholarlify Scholarlify is a trusted platform that simplifies the search for global scholarships, fellowships, and academic funding. Designed for students, researchers, and professionals, we provide verified opportunities, real-time updates, and direct application access — all in one place. With a student-first mission, we empower learners to unlock higher education without financial barriers.
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