How to Take an Education Loan in India: A Complete Guide

Planning to pursue higher studies but worried about the cost? Whether you're aiming for a top Indian institute or a global university, an education loan can help you achieve your dreams without financial stress. But how do you actually take an education loan in India?

This guide walks you through the full process—from planning and applying to getting your loan approved and disbursed.

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✅ What Is an Education Loan?

An education loan is a financial product offered by banks and NBFCs (Non-Banking Financial Companies) to help students pay for higher education. It typically covers:

• Tuition fees

• Hostel and mess charges

• Travel (for overseas studies)

• Study materials, books, laptops

• Other related expenses

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🎯 Who Can Apply?

To take an education loan, the applicant must:

• Be an Indian citizen

• Have secured admission to a recognized institute in India or abroad

• Pursue a course that’s approved by the lender (usually graduate/postgraduate/diploma/professional courses)

• Have a co-applicant (parent/guardian) with stable income To Connect Swiploan.

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📋 Documents Required

For the Student:

• Admission letter from the university/institute

• Academic records (10th, 12th, graduation mark sheets)

• ID & address proof (Aadhar, PAN, Passport for abroad)

• Passport-size photos

For the Co-applicant:

• Income proof (salary slips, IT returns)

• Bank statements (last 6 months)

• ID and address proof

• Collateral documents (if required)

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📝 How to Take an Education Loan – Step-by-Step Process

1. Research and Compare Lenders

Start by comparing banks and NBFCs on:

• Interest rates

• Maximum loan amount

• Moratorium period (repayment holiday)

• Processing fees and loan tenure

• Government subsidy eligibility

Top Education Loan Providers in India:

• SBI (State Bank of India)

• HDFC Credila

• Bank of Baroda

• Axis Bank

• ICICI Bank

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2. Check Eligibility

Before applying, check if:

• Your course and institution are eligible

• Your co-applicant meets income requirements

• You need to provide collateral (usually for loans above ₹7.5 lakh)

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3. Apply Online or Offline

You can apply through:

• The bank's official website

• The Vidya Lakshmi Portal (for government-linked banks)

• By visiting the nearest bank branch and Swiploan.

Fill out the application with accurate information about the course, expenses, and family income.

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4. Submit Documents

Upload or submit physical copies of required documents. Some banks may also conduct telephonic or in-person verification.

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5. Wait for Loan Sanction

Once the bank verifies your application and documents:

• You'll receive a sanction letter stating the approved amount, interest rate, repayment terms, etc.

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6. Get Loan Disbursed

After signing the loan agreement:

• The bank disburses the loan directly to the educational institution or to your account for other approved expenses.

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💸 How Much Can You Borrow?

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🧮 How Is EMI Calculated?

Your EMI (Equated Monthly Installment) starts after the moratorium period (course duration + 6–12 months). During the study period, you may be charged simple interest, or the repayment may be deferred completely.

Use an Education Loan EMI Calculator to estimate your monthly payments.

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🎁 Government Subsidy Schemes

You may qualify for:

• Central Sector Interest Subsidy (CSIS) – Full interest subsidy during moratorium for EWS (income < ₹4.5 lakh/year)

• State-based schemes – Vary by region and income group

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💡 Pro Tips to Get Your Loan Approved Faster

• Apply early (as soon as admission is confirmed)

• Choose recognized or top-tier institutes

• Maintain a strong academic profile

• Ensure your co-applicant has a stable income

• Opt for secured loans if applying for high amounts Swiploan.

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🧠 Final Thoughts

Taking an education loan is a smart and practical way to invest in your future. With the right planning and documentation, the process is simple and straightforward. Choose your lender wisely, understand the terms, and always read the fine print. TO KNOW MORE :