Education Loan Interest Rate, Eligibility & Apply Online, etc

Education Loan or Student Loan is provided by many banks and other financial institutions in India. A lot of students apply for education loans every year in various banks. The students who need money to complete their studies can apply for an education loan themselves or through their parents. All the information related to Education Loan or Student Loan like Interest Rate, Loan Calculator, EMI Calculator, Repayment Period, Documents Required, How to Apply, Application Process, Eligibility, etc is given below.

Student Loan or Education Loan Interest Rate & Apply Process

What is Student Loan or Education Loan?

After passing your 12th class education, if you need money for the higher studies for the payment of Fees, Books, Living Expenses, etc, then the Banks or Financial Institutions lend money for your study/ education expenses. The loan amount provided is called Education Loan or Student Loan.

Eligibility to Get Education Loan

NationalityIndian
Age Limit18-35 Years (While Applying for Loan)
Academic RecordShould Be Good
Educational QualificationPursuing Degree/ PG Degree or Diploma
Income SourceParents should have a stable income source
LocationUniversity/ Institute in India or Abroad
Admission StatusAdmission Planned or Should be confirmed
SecurityTangible Collateral or Guarantor (depending upon the amount and income status)

List of Expenses covered in Education Loan

Education Loan covers the following expenses of the student:

  • Tution Fees
  • Examination Fees/ Laboratory Fees/ Library Fees
  • Computer/ Laptop cost if required for the course
  • Refundable deposits with the university/ institute
  • Hostel/ Accomodation Charges
  • Books Charges
  • Travel Expenses (For Abroad studying students)
  • Any other expenses required for the course to complete study/ project work, etc.

Documents Required for Education Loan

The educational record is the sole most important factor for an Education Loan, Actually, Student Loan is for bright students who do not have sufficient funds to complete their education. If you have a strong academic record then there are high chances of getting an Education Loan. Displaying good prospects for after-degree employment/ job/ income generation increases the chances of approving the Education Loan/ Student Loan. The documents required to apply for an Education loan includes:

  • Duly signed and properly filled application form
  • 2 Photographs affixed on the applcation form
  • Identity Proof such as Aadhaar Card and PAN Card of the students and Parents/ Guardians
  • Self attested photocopies of the educational certifcates such as 10th/ 12th class marksheets
  • Statement of Fees Structure/ Course Expenses/ Study Cost etc
  • Age Proof certificate such as Birth Certificate, Voter ID, Passport, Driving Licence, etc.
  • Residence Proof document
  • Income Proof documents including
    • Most recent Salary Slip or Form 16 of the Parent/ Guardian etc
    • Last 6 months Bank Statement or updated passbook copy
    • Inocome Tax Return (ITR) or IT Assessment Order of last 2 Years
    • Documents of Assets and liabilities of Parents

How to apply for Education Loan

There are two ways to apply for the Education Laon/ Student Loan.

  • Online:
    1. Fill the online application for the Education loan, attach the required documents and submit the application Form
    2. Provide your details to the lender and they will contact you and discuss the terms and conditions berore you apply for the Education Loan
  • Offline:
    1. Visit Branch: You can visit your nearest bank branch with the required documents, discuss with the loan agent/ manager present, fill the form and apply in person.
    2. Call the Bank/ Lender: You can call the bank/ lender or make a call back request online to discuss the loan terms and condititons and procedd to apply for loan.
  • Virtual Assistant: Many banks provide the virtual assistance online which clears all the doubts and helps in clearing all the doubts and applying for Education Loan

Education Loan EMI Calculator

The links to calculate the Education Loan EMI Calculator and Student Loan Calculator are given below.

Education Loan Interest Rate

The Interest Rate for the Education Loan/ Student Loan varies from bank to bank and it also varies within a bank depending upon the type of scheme under which you are eligible and applying for the Education Loan. The details of the Interest Rate Schemes of individual Lenders/ Banks are given below. Most of the banks have various schemes for Educational Loans depending upon the various factors related to the borrower.

Major Educational Loan Providers

Bank/ LenderLink
SBI Education LoanClick Here
HDFC Bank Education LoanClick Here
Bank of Baroda Education LoanClick Here
Axis Bank Education LoanClick Here
Vidya Lakshmi Student LoanClick Here
Union Bank of India Student LoanClick Here
PNB Bank Education LoanClick Here

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FAQs

Will I get tax benefits on Education Loan?

Under Section 80E of the Income Tax Act, 1961, you can get a tax deduction on the interest paid on your education loan. This benefit is only for the individual borrowers of the Education Loan for higher education. The tax deduction covers all fields and all courses of study in India and abroad. The tax deduction is only applicable on the interest portion of the EMI and not the principal.

How Can I pay Education Loan Installment?

You can pay by Internet Banking/ Cheque/ Direct Debit/ Demand Draft, etc.

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