Education Loan Eligibility Criteria for Studying Abroad
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Who is eligible for getting student loans? If you are going to knock on the bank’s door to borrow an education loan to study abroad, then you should have the answer to this question. Indian citizenship, age of candidate, admission status, and credit report are the common but important factors of education loan eligibility.
Meritorious students get financial help to attend universities abroad under this unique loan programme. It is known to all that the cost of studying abroad is quite expensive. Many students drop their plans of overseas education due to expensive fees. However, borrowing study loans is the best idea to finance their studies. Students can explore government education loan schemes before applying for any student loan. You may get interest-free loan, easy repayment options and other benefits if you are eligible. This article will help you understand the eligibility criteria for bank-wise education loans to finance your study abroad education.
Read More: How to Repay Student Loans Faster?
Education Loan Eligibility in India
It is important for students to understand the education loan eligibility guidelines and qualify the same, to be able to apply to their preferred money lending institution/bank for their Education Loan. The education loan eligibility criteria vary for different banks. However, some common factors that are taken into account by all money-lending institutions (banks) include:
- Citizenship: The applicant must be an Indian national.
- Age Limit: If the loan applicant is under 18, then his or her parents must apply for the loan on their behalf.
- Academic Performance: The applicant must have a strong academic record. A strong academic record enables quicker loan approval.
- Admission Letter: The applicant must have received admission to a reputable overseas college, university, or institution.
- Top Trending Course: The applicant's chosen course must be technical or professional since banks favour programmes that prepare students for employment.
- Co-applicant: Full-time students must have a co-applicant, who may be either a parent, a guardian, a spouse, or a parent-in-law (in the case of married candidates). The co-applicant needs a steady source of income.
Factors Enhancing Education Loan Eligibility
Till now, you have understood the importance of eligibility to get an education loan. Banks and NBFCs analyze the profile of candidates before offering student loans. Here are some factors that can help you to be more eligible for borrowing education loans:
- Strong Academic Record
- Admission to a top university or college
- Family's Financial Stability
- Promising Career Prospects
Bank Wise Educational Loan Eligibility in India
Check out the student loan eligibility criteria of different banks.
| Banks in India | Highlights |
|---|---|
| SBI |
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| ICICI Bank |
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| PNB |
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| Bank of Baroda |
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| UCO Bank |
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| Federal Bank |
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| Axis Bank |
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| Canara Bank |
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Documents Required for Education Loans
While the formalities vary for different banks while applying for an Education Loan, however, there are a set of formalities that are identical across the board, such as documents that you would be required to disclose along with your Loan Application Form. The documents primarily include but are not limited to:
List of Documents Required for Education Loan: For Students
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- Proof of Identity (either): PAN/ Passport/ Driver’s License/ Voter ID card
- Proof of Residence/ Address (either): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhaar Card
- Income Proof
- Valid Indian Passport
- Academic Records: 10th Result and 12th Results
- Graduation Result: Semester-wise (if applicable)
- Entrance Exam Results through which admission has been secured including GMAT, GRE, TOEFL, IELTS scores
- Proof of admission: Offer Letter or Admission Letter from the Institution. A conditional admission letter may be considered in the case of studying abroad.
- Statement of cost of study/ Schedule of expenses
- 2 passport-size photographs
- If any previous loans from other Banks/Lenders, then the Loan A/C statement for the last 1 year
Also, Read
| Indian Banks Offering Education Loans for Studying Abroad | Vidyalakshmi Education Loan |
| Public v/s Private Education Loan Providers | Education Loan Calculator |
Documents Required for Study Loan: Co-applicants:
- Proof of Identity (any one): PAN/ Passport/ Driver’s License/ Voter ID card
- Proof of Residence/ Address (any one): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhaar Card
- 2 passport-size photographs
- If any previous loans from other Banks/Lenders, then the Loan A/C statement for the last 1 year
We have also provided the Income Proof documents that would be required from the Co-applicant as part of the Education Loan process.
Documents Required for Income Proof
- Salary Slip or Salary Certificate of last 3 months
- Copy of Form 16 for the last 2 years or a copy of IT Returns for the last 2 financial years, acknowledged by IT Dept.
- Bank account statement for the last 6 months (of Salary Account)
- Business address proof (For Self Employed)
- IT returns for the last 2 years (For Self Employed)
- TDS Certificate (Form 16A, if applicable)
Chances of Getting an Education Loan
To guarantee that students receive financial help, banks are vigilant while evaluating a candidate's eligibility. The general academic standing of the applicants, their intended course of study, and their present admission status are taken into account before authorising a loan.
- Obtaining a good grade or ranking on the prerequisite examinations
- Showing academic excellence
- Being accepted into a reputable institution of higher learning
- Parents, guardians, and co-borrowers have a solid financial history.
- Showing promise for new employment and revenue growth
Students are informed that from the education loan process to approval and disbursement, the entire loan process is time-consuming, so it is always advisable to apply for an Education Loan months in advance to avoid any last-minute complications. Students who have applied for an education loan from a nationalized bank are required to start the repayment process after the completion of the moratorium period (Repayment commences one year after the course completion or 6 months after securing a job, whichever is earlier). However, students should understand the moratorium time varies for different loan-providing institutions.
How to Calculate EMI on Education Loans
There are multiple websites which offer a tool called, Education Loan EMI Calculator. It allows you to stimulate the EMI you need to pay and the total repayment amount. All you need is information about principal amount, interest rate and loan tenure. These are the most important factors to calculate your education loan.
- Principal Amount: This is the total loan amount you're borrowing.
- Interest Rate: This is the annual percentage rate (APR) charged on the loan. Education loan interest rates can vary significantly among different banks and financial institutions.
- Loan Tenure: This is the duration of the loan, typically expressed in months or years.
For Example, A student borrowed INR 20,00,000 as an education loan for 7 years at a 9.4% rate. That student needs to pay INR 32,586 per month as EMI of education loan.
Contact India’s leading education loan providers through Shiksha Study Abroad For more queries. Do write to us in the comments below. Or request a call back from our Shiksha Study Abroad Counselling Services
Education Loan Eligibility FAQs
Q. What is the eligibility for an education loan?
A.Here are the list of eligibility criteria for getting education loans in India.
- Indian Nationality: You must be a citizen of India.
- Age: The minimum and maximum age limits can vary depending on the bank, but typically range between 18 and 35 years.
- Educational Background: Some banks might offer loans for specific programs or streams.
- Admission Confirmation: You'll need to provide proof that you have got admission in a university.
Apart from this, there are some other criteria that you need to fulfill. You can ask banks for more details.
A. What are the required documents for getting student loans?
Here is the list of required documents for the education loan application. It can vary slightly depending on the bank or lender you choose:
- Filled application form
- KYC Documents (Know Your Customer) such as ID proof, residence proof, and more
- Academic Transcripts and Mark Sheets
- Co-applicant/Guarantor Documents such as ID proof, income proof and bank statement.
Q. Can a 12th pass get an education loan for study abroad?
A. Yes, a 12th-pass student can get a study loan from a bank or NBFC to study abroad. The only condition is fulfilling the eligibility criteria decided by the banks for offering loans. It can vary for different banks and financial institutions. We have mentioned some general eligibility below:
- Secure admission to a recognized foreign university or institution.
- Have a co-applicant.
- Meet the minimum academic requirements.
- Must have all required documents (Academic and personal).
Q: Â Is university of West of Scotland good for international students?
The University of the West of Scotland has five modern and diverse campuses in United Kingdom. The University has welcomed more than 3,000 international students which are representing 1/3 of the globe. They also have 130 European partners who are actively in global study and exchange options through the Commonwealth universities programmes. The University also offers study abroad opportunities for UWS who are eligible for the same and also have more than 20 transnational education partners worldwide which helps them deliver UWS Bachelors and Masters Degrees around the world.
Q: Â Why indian students choose to study at Hult International Business School - UK?
Indian students choose to study at Hult International Business School in the UK for several reasons, including its highly ranked programs, global outlook, and career support. Hult offers a range of full-time master’s degrees, immersive bachelor's programs, and MBA options that prepare students to excel in the global job market. The school is the largest and top-ranked global business school, providing students with an incomparable universal outlook. Additionally, Hult's focus on experiential learning, extensive career support, and the opportunity to study at multiple campuses around the world are attractive to Indian students seeking a global business education. Furthermore, the school's emphasis on innovation and meeting the needs of students and employers may also contribute to its appeal to Indian students
Q: Â How to prepare for UK 10th board exam 2025?
Those who are preparing for the UK Class 10 exam 2025 are recommended to follow the tips below.
- Know the exam pattern
- Make a proper time table as per the syllabus
- Solve previous year question papers
- Make short notes of important formulas and theorems
- Revise regularly
- Figure out weaker areas and learn them well
With proper planning and hard work, students can easily clear the UK 10th board exam.
Q: Â How can I get admission in the University of Manchester?
The application process at the University of Manchester may vary depending on the course and level of study. However, here is the application process for UG and PG courses:
The Undergraduate Application Process:
Step 1: You can apply through the UCAS common application portal.
Step 2: Go to the website and select the course you are interested in.
Step 3: Ensure you meet the Entry requirements (Academic qualifications, English proficiency, etc.
Step 4: Once you decide on the course, submit documents such as SOP, Transcripts and personal statements.
Check out: tips to improve your SOP.
Step 5: You can track the application's progress through your given credentials by UCAS.
Step 6: Once the applicant submits the application to UCAS, it forwards to the University, and the admission teams carefully analyse the application document.
Step 7: The university will send you an offer letter once selected. Hence keep checking your UCAS portal for your application status.
The Postgraduate application process:
Step 1: Select the postgraduate course you are interested in from the University of Manchester.\
Step 2: Ensure you meet the entry requirements for the chosen program, as they vary depending on the course.
Step 3: Complete the online application by providing your personal information.
Step 4: Upload the required documents, such as Academic transcripts and proof of English language proficiency ( TOEFL/ IELTS). experience in your fields and references (depending on the course). You also may require Two LORs depending on the course.
To make your admission better, check out the following: How Admission Officers Evaluate your application.
Step 5: If your application is successful, you will receive an offer from the University of Manchester.
Q: Â What rank is Wolverhampton University in UK?
The University of Wolverhampton is one of the best universities in the United Kingdom. The university is consistently ranked among the best universities nationally and globally. For nearly 200 years, the University of Wolverhampton has been consistently providing a quality of education to students and producing highly skilled graduates. The national rankings of the University of Wolverhampton are given below:
| Ranking Body | Ranking |
|---|---|
| The Guardian University Guide 2024 | #101 |
| The Complete University Guide 2024 | #117 |
Q: Â What are the job opportunities after doing MIM from Aberystwyth University, UK?
Graduates who complete Aberystwyth University's Master's in International Management (MIM) programme have a broad spectrum of job prospects across diverse sectors and industries.
They can step into roles like:
Business Development Manager: In this capacity, MIM graduates are responsible for spotting and pursuing fresh business opportunities, forging partnerships, and expanding the company's clientele.
International Marketing Manager: Those with an MIM can take on the role of devising and executing marketing strategies on a global scale, conducting market research, and overseeing international marketing campaigns to promote products or services.
Supply Chain Manager: Armed with an MIM, graduates can excel as supply chain managers, overseeing the movement of goods and services from suppliers to customers. They focus on optimizing logistical processes and managing international supply chain operations.
Q: Â How to download UK Board 12th date sheet 2024?
Following are the steps to download the UK 12th date sheet 2024.
- Open the Uttarakhand Board's official website at ubse.uk.gov.in
- Click on 'Examination Scheme' available on the homepage
- A new window will appear on the screen containing a link of the UK Board 12th date sheet 2024
- Click the link and download the Uttarakhand 12th date sheet 2024
Q: Â How good is the University of Chester (UK)?
University of Chester is surely a good option for international students mainly beacuse of a diverse range of excellent academic programs.Below are some reasons why University of Chester is good:
Academics: The University of Chester offers over 200 undergraduate, postgraduate, and research degree programs to international students. The University of Chester University offers undergraduate major and minor courses. Students can also pursue master’s or doctoral programs at the University of Chester University.
Location of the university - The University of is in a location where arts & culture, technology industry and entertainment industry providing endless internship. International Students have access to beaches, outdoor activities, live music/performances and attractions which makes their make campus life more enjoyable. The location gives University of Chester students an additional mark to study at University of Chester.
Ranking: Many global ranking sources like THE (Times Higher Education), etc., have ranked University of Chester among the top universities in the world since 2021. These bodies consistently rank it among the top universities in UK.
Fees: : The cost of attending University of Chester for Indian students can vary depending on several factors. Tuition fees for international students at University of Chester are typically higher than for Uk citizens. However, it is important that the tuition fee can change over time, and it is recommended to visit the official website to recheck the fees and accommodation. Indian students should also consider other costs such as housing, health insurance, meals and transportation attending University of Chester.
Raj Vimal has experience of 7+ years in SEO Content Writing, which includes 5+ years in the Ed-Tech industry. He has written articles about studying abroad, especially in the USA, UK, and other English-speaking coun... Read Full Bio
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2 years ago
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Reply to manoj kumar
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2 years ago
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Hello Manoj. You can get in touch with our Shiksha Study Abroad Counsellors, who provide assistance with university admissions: https://studyabroad.shiksha.com/apply
2 years ago
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2 years ago
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Hello Emmanuel. You should check out popular MBBS universities in Italy. You can check out our MBBS guide here: https://studyabroad.shiksha.com/study-mbbs-abroad-eligibility-colleges-fees-exams-jobs-articlepage-2551 and check out scholarships here: https://studyabroad.shiksha.com/scholarships
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3 years ago
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3 years ago
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Hello Kender. You can apply for an education loan to take care of your university expenses as well as living costs. Kindly contact a bank closest to you to know more about the details on education loans. You can also visit: https://studyabroad.shiksha.com/apply-education-loan
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