Education loan or student loan, are advances made by banks or financial organisations for the purpose of meeting higher education expenses of the students. Under this special loan scheme, the meritorious students of the country having excellent educational qualification are offered financial help to study in renowned institutes in India and abroad.

Documents Required

After you have decided the loan you want to take from a particular plan it is important you keep proper documents ready for verification as well as other documents required by the bank. Bank look for people who are credible thus there should be no hindrance while you show all the supporting documents. Mostly these are the documents that are required by the bank:

  • Pan Card Number
  • Passport Photo
  • Address Proof
    (Valid Driving License / Valid Passport / Aadhar Card)
  • ID Proof
    (Valid Driving License / Valid Passport / Voter’s ID / Aadhar Card / Pan Card)
  • Mark Sheet
  • Admission letter from the foreign university
  • A complete break-up of the cost of the course
  • Statement of Liabilities/ Assets of Parent/ Guardian/ Co-Borrower


  • Repayment period of upto 15 years after Course Period + 12 months of repayment holiday*
  • Repayment will commence one year after completion of course.
  • Loan to be repaid in 15 years after the commencement of repayment
  • In case second loan is availed for higher studies later, to repay the combined loan amount in 15 years after completion of second course
  • EMI Generation

Education Loan Eligibility

The vital education loan eligibility criteria that the candidates need to fulfil to get approval for the loan are listed out here:

  • The candidate applying for the loan must be a resident of India.
  • He/she must have confirmed admission in recognised educational institutes in India or abroad.
  • The age of the candidate must fall within the bracket of 18 to 35 years during loan application.
  • He/she must be undergoing a graduate/postgraduate degree or a PG diploma.
  • The applicant should have a secured admission in a college or university affiliated by UGC/AICTE/Govt. etc.
  • Students pursuing full-time courses need to have a co-applicant who can be either parent/guardian or spouse/parent-in-law (in case of married candidates).

Things to be Kept in Mind

1. Know the Institute

It is important to choose a bank which has proper standing, rating, infrastructure and reputation. Each and every bank has different policies and procedures they follow. Proper check of institution is necessary to ensure that in the future the entire process will remain smooth and the institute will not cause problems in between which might lead to unnecessary hassle.

2. Make Informed Decisions

There are various plans offered by the banks and financial institutions thus you have several options. Ensure you choose the one that meets your requirement. Keep in mind the present interest rates which in India, is somewhere between 8.50% to 15.20%. There are various offers in banks for different kinds of students, like subsidies on interest rates for female students. Make sure you make an informed choice.

3. Choose Duration

It is preferable to choose short term loans as compared to long term loans as longer period means higher interest rates thus, larger amount of money for repayment. If you are confident that you will get a good job after completing your education, it is always beneficial to choose shorter loan tenure. Even though it leads to higher EMI (equated monthly installments) the overall cost is less because of the reduction in interest rates.

4. Clear Doubts

It is necessary that one is clear about the type of loan that is being taken. If you have any doubt regarding the condition of the loan or the method of repayment it is better to ask the bank/financial institution before taking the loan. This helps in having a clear picture and the kind of loan offered and prevents from any unpleasant surprises in the future.

5. Scholarships

Many a times there are various scholarships available to students in need of help. Keep a close eye on such scholarships as they help reduce the amount of loan to be taken and reduce the burden to pay back money.

Student Loan Terms and Conditions

  1. Purpose for which the SBI education loan can be availed
  2. Courses Eligible
  3. Student Eligibility
  4. Expenses Considered for Loan
  5. Maximum Loan Amount
  6. Margin
  7. Security
  8. Processing Charges
  9. Interest Charges
  10. Sanction & Disbursement
  11. Repayment
  12. Top up Loan