How to Apply for an Education Loan in India (2025): Step-by-Step Guide

Pursuing higher education — whether in India or abroad — often requires substantial financial investment. To bridge this gap, many students turn to education loans, which offer flexible repayment, moratorium periods, and even government subsidies.

If you’re wondering how to apply for an education loan, this guide will walk you through each step, from choosing the right lender to getting your loan approved quickly and efficiently.

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Why Apply for an Education Loan?

• Covers tuition, books, travel, and living expenses

• Helps you study in India or overseas without financial stress

• Offers tax benefits under Section 80E

• Enables self-financing without depending on family savings

• Builds a credit profile for students Apply Swiploan.

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Eligibility Criteria for Education Loans

Before applying, make sure you meet the basic eligibility:

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Documents Required

Be ready with these documents during the application:

For Student:

• Admission letter or offer from the institution

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

• Entrance exam scores (if applicable)

• Valid ID and address proof

• Passport (for overseas studies)

For Co-applicant:

• Income proof (salary slips, ITR)

• KYC documents (PAN, Aadhaar)

• Employment or business proof

• Bank statements (last 6 months)

If Collateral Is Needed:

• Property documents (title deed, valuation report)

• Ownership proof

• No encumbrance certificate

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Step-by-Step Guide to Apply for an Education Loan

Step 1: Research and Compare Lenders

Compare banks, NBFCs, and fintech lenders based on:

• Interest rate

• Maximum loan amount

• Collateral requirement

• Processing time

• Moratorium period

• Subsidy options

Tools like EMI calculators and comparison sites can help.

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Step 2: Choose the Right Loan Scheme

Some top options include:

• SBI Student Loan

• Bank of Baroda Education Loan

• HDFC Credila Loan

• Swiploan (for short-term/fintech-based loans)

• PNB Udaan

• Axis Bank Education Loan & Apply Swiploan.

Choose a scheme based on your course, country, and repayment ability.

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Step 3: Apply Online or Offline

Online Application:

• Go to the lender’s official website

• Fill out the application form

• Upload documents (PDF, scanned copies)

• Submit and wait for pre-approval

Or use:

• Vidya Lakshmi Portal – Govt. platform to apply to multiple banks at once

• Fintech apps like Swiploan for quick, digital loan processing

Offline Application:

• Visit the nearest branch of your chosen bank

• Submit your documents and filled-in application

• Meet the loan officer for document verification

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Step 4: Loan Approval and Sanction

The bank reviews:

• Academic and financial background

• Co-applicant’s ability to repay

• Property details (if collateral-based loan)

If approved:

• A sanction letter is issued with details of amount, rate, tenure, and terms

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Step 5: Disbursement of Loan

• Funds are directly paid to the institution (tuition fees)

• In some cases, funds for books, travel, or laptop are disbursed to the student

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Bonus: Use an Education Loan EMI Calculator

Before you apply, use an EMI calculator to:

• Estimate your monthly repayment

• Choose the right tenure

• Plan your budget in advance

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Government Subsidies to Reduce Loan Burden

• Central Sector Interest Subsidy (CSIS) – For EWS students

• Padho Pardesh Scheme – For minority students (currently paused)

• Dr. Ambedkar Scheme – For OBC/SC/ST candidates abroad

Check eligibility with your bank or on the Vidya Lakshmi portal.

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Tips to Get Quick Loan Approval

• Apply early, especially for foreign universities

• Maintain a strong academic record

• Ensure co-applicant has a stable income

• Submit complete, organized documentation

• Choose reputed institutions for better approval odds

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Final Thoughts

Applying for an education loan in India is easier than ever, thanks to online portals, digital lenders, and government support. With the right information and a little preparation, you can secure funding for your dream education without delay.

Whether it’s a bank like SBI, a digital lender like Swiploan, or an NBFC like Credila, compare your options and apply smart. TO KNOW MORE: