How to Apply for Loans as a Student
                     How to Apply for Loans as a 
Student
Students are part of a vibrant millennial community. Many of them may be seen launching 
start-ups, giving their time to NGOs, interning, and engaging in countless other activities 
in addition to their studies. However, to reach that stage, they need to get well educated 
that too from a reputed university. This not only included paying for the tuition fees but 
also their daily expenses.  
 
And, like everyone else, they must cover their daily expenses. 
 
However, what can they do in such situations where they need money to educate 
themselves?
How do students apply for loans? This could be a pertinent subject that many of you are 
thinking about.
We hope to provide students with more information about education loan possibilities and how to 
apply for Educational loans.
Before discussing the details of the student loans, let us first try to comprehend the basic eligibility 
conditions for obtaining an education loan.
 Minimum age of 18 is required.
 Proof of identity, residence and PAN are required.
 Have a source of income to back up the loan.
 Possessing a Credit History.
Out of the four primary criteria, students can only check one or two of them when it comes to them. That is 
the proof of age and identity. However, before giving any money, lenders also consider the borrower's 
capacity to repay, which students do not have because, mostly, they do not have jobs. What choices do you 
have in that situation? 
Since students do not have any source of income, any loans that they are eligible for must have a co-
applicant or guarantor, this implies that another person (such as the student's parents or siblings) will 
guarantee the loan's repayment on their behalf. Some loans, such as education loans, are also offered based 
on expected future earnings. These loans do, however, also call for a co-applicant, guarantor, and often, 
collateral.
Student Loans Available
Education Loan
 
This has been the most commonly used student loan. Any student between the age of 18 and 35 (or even 
older on a case-by-case basis) who wishes to pursue an education to study in India or overseas may apply 
for an educational loan. The desired course must be approved by the appropriate authorities.
Because students lack income and credit history, they should have co-applicants in the presence of family, 
siblings, or even a spouse. This is a requirement for those pursuing basic graduation or post-graduate 
studies. A co-applicant may not be necessary for students returning to school after a period of employment, 
nevertheless, if they have enough income or assets to cover the loan.
Loan to Course Fee Ratio and Quantum.
Finances can vary between different loan providers, but the two main factors taken into account are 
the country in which you study and the expected salary that you can earn once you have graduated 
from your course. The loan-to-fee ratio is also decided on a case-to-case basis with instances of 
100% finance also being made available.
 Required documentation.
 The application form is attached with the image and also the applicant’s signature.
 Identification Documentation.
 Evidence of Address.
 Academic Documents: 12th Grade Mark sheet/Certificate Subsequent Years of Education Mark 
sheet/Certificate e.g., BE, B. Com, BSc, etc. CAT, CET, or any other entrance exam mark sheet (If 
applicable) GMAT, TOEFL, IELTS, GRE, etc. Mark sheets (If applicable) Scholarship Applications (if 
applicable).
 Admission Documentation.
 Bank Records
 Proof of co-income applicants.
 Proof of collateral security documents.
 Lenders also demand that the loan applicant have life insurance coverage.
Period of Moratorium
 
Unlike other loans, which begin payments as soon as the loan is disbursed, education loans have a moratorium period. The 
moratorium term for education loans is one year after the course completion or six months of work following the course, 
whichever comes first. The loan is subject to simple interest during this time.
 
 
Benefits from Income Tax
 
Under Section 80E of the Income Tax Act, both the primary applicant (the student) and the co-applicant (if he or she is 
involved in loan repayment) are eligible for a deduction for the amount paid as interest on educational loans in any given year.
Student Personal Loans 
There could be numerous causes for a credit need that are not covered by an educational loan because it is only 
issued to meet educational needs. Or perhaps there is a reason why you are ineligible for a student loan. For such 
instances, several institutions, such as HDFC Bank, have created Personal Loans for Students, which can also be 
utilized for educational reasons.
The loan has the following characteristics:
 Set at a maximum of Rs 40 lakhs*
 Low-Cost EMIs.
 Flexible tenure choices range from 12 to 60 months.
 You will, however, be unable to claim Income Tax advantages or obtain a moratorium on these personal loans. They 
are treated similarly to any other type of personal loan. The interest rate levied is also greater than that of a 
priority sector loan.
Fintech Loans for Online Courses.
To obtain a degree, you are not always required to attend a traditional institution. Learning is also possible because 
almost everything is done via the internet. As Massive Online Open Courses, a variety of courses from reputable 
colleges and institutes around the world are available online (MOOC). Most of these programs may require a charge 
ranging from Rs 5,000 to Rs 50,000. Though these may appear to be minor sums, they may be challenging for a 
learner to calculate an educational loan calculator.
Students can now obtain loans from fintech lenders to pay for college at all top MOOC providers. They can use their 
loans to pay for online IELTS, SAT, GMAT, and other test preparation. 
* This figure only applies to specific banks and may vary amongst banks.