Education Loan for Students in India: Documents and Steps
Money should not decide whether a good student studies further. Banks and lenders in India offer education loans for courses in India and abroad. Terms differ from lender to lender, so compare at least two or three before you sign.
What an education loan usually covers
- Tuition and college fees
- Hostel or accommodation
- Exam, library and laboratory fees
- Books, equipment and a computer where the course needs one
- Travel and insurance for study abroad
Step by step
- Get the admission letter and the official fee structure from the institution.
- Estimate your EMI. Use our education loan EMI calculator to see the monthly instalment for different amounts and periods.
- Compare lenders. The government's PM-Vidyalaxmi portal lets you see and apply to several banks in one place.
- Apply with complete documents (list below). Incomplete files are the most common reason for delay.
- Sanction and disbursal. The bank usually pays the fee directly to the institution, semester by semester or year by year.
Documents banks usually ask for
Student
- Aadhaar and PAN
- Passport-size photographs
- Class 10 and 12 mark sheets, and graduation mark sheets for PG courses
- Entrance exam result, if any
- Admission letter and fee structure
- Passport and visa documents for study abroad
Parent or co-borrower
- Aadhaar, PAN and address proof
- Income proof: salary slips, Form 16 or income-tax returns
- Bank statements for the last six months
- Property papers if the bank asks for collateral
Tips that save time
- Apply as soon as you have the admission letter; sanction can take a few weeks.
- Ask about the moratorium (the period after the course before EMIs begin) and whether interest is charged during the course.
- Interest paid on an education loan can qualify for an income-tax deduction under current rules. Check with a tax adviser.
Our bank loan assistance team helps you prepare a complete file. Book a counselling slot to plan your course and budget together.