All You Need To Know About Education Loan For Study In India
                     All You Need To Know About Education Loan For 
Study In India
• Quality education is a must for a complete and successful life. 
For many, the meaning of quality education is graduating from 
a highly reputed institution. However, the cost to do so is 
increasing rapidly. In fact, the cost of studying at reputed 
institutions is already quite high.
• Hence, it may not be a surprise that even after pooling all your 
savings together, there might still be a shortage of funds. In 
such a situation, an education loan plays a vital role by ensuring 
that you don’t face problems with money while pursuing higher 
education. To ensure you get the best education loan for you, 
here is everything you need to know about it: 
What does an education loan cover?
Traditionally, education loan for study in India covers the basic tuition fee. 
However, there is abundance of online lenders that offer different loan 
packages as per the borrower’s requirement. Certain education loans even 
cover almost 100% of a student’s education-related expenses. Here are the 
common expenses that education loans cover in India:
• 100% College tuition fees payable
• Accommodation charges
• Exam and library fees
• Books and equipment including a computer
• Traveling expenses abroad
Eligibility criteria
• While education loan is an ingenious financial product to pursue higher 
education, lenders do not just give them out to anyone who applies. Hence, 
the first thing you should do if you want to get an education loan for study in 
India is check whether you can get one or not. This means you should know 
whether you fit the eligibility criteria for an education loan. The exact criteria 
for eligibility differs across various lenders. However, there are some basic 
parameters that every lender treats as eligibility. The common criteria 
include:  
• The student applying for the education loan must be an Indian citizen, 18 
years old or above.
• The student must have a confirmed admission in the Institute before the 
lender disburses the education loan.
• The education loan must be co-signed by an earning co-borrower in India.
Co-borrowers:
• One way that an education loan is different from other types of loans is 
that it provides financial assistance to students. What makes it so 
special is that students have no credit history, hence, lending them 
money is risky. To make up for this risk, however, lenders ask for a co-
signee/co-borrower. Moreover, there is also criteria that a co-borrower 
must fulfil. They include: 
• The co-borrower of the student planning to study in India must be an 
Indian citizen and could be a parent, sibling, legal guardian, or a 
relative.
• The co-borrower must have a bank account in any bank in India, with 
cheque writing facilities.
• The co-borrower must agree to be the primary debtor.
Documentation 
• For any student that want to take an education loan for study in India, 
here is the list of documents that they need to provide: 
• Duly-filled application form.
• Graduation, Secondary School Certificate, or High School Certificate or 
mark sheets
• KYC documents that include ID, address, and age proof.
• Signature Proof
• Income Proof of parents or guardian
• If collateral is required, documentation for Immovable property, FDs, etc.
We hope this article was helpful to you.
You can find more interesting things on these sites mentioned below :- 
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