Education Loan Eligibility Criteria for Studying Abroad

Education Loan Eligibility Criteria for Studying Abroad

7 mins read1.4L Views 58 Comments
Talk to Expert Icon BlueTalk to Expert
Raj
Raj Vimal
Study Abroad Expert
Updated on Apr 24, 2025 09:56 IST
Education loan eligibility criteria in India vary from bank to bank. Government and Private sector banks offer student loans at cheap interest rates with flexible terms and conditions to candidates who fulfil education loan eligibility and have impressive profiles. Getting a study loan is helpful for Indian students to finance their study abroad dream.
education loan eligibility

Your age, course, university, and your co-applicant's credit report are the most important factors to decide your eligibility for an education loan. Borrowing study loans is the best idea to finance higher studies. Students can explore government education loan schemes before applying for any student loan. However, only eligible students manage to get an interest-free loan, easy repayment options and other benefits. 

Who is eligible to get student loans? If you are going to knock on the bank’s door to borrow an education loan for studying abroad, then you should know the answer to this question. This article will help you understand the eligibility criteria for bank-wise education loans to finance your study abroad. 

Read More: How to Repay Student Loans Faster

Education Loan Eligibility in India 2025

Students need to understand the education loan eligibility guidelines and qualify for the same. The student loan eligibility criteria vary for different banks. However, some common factors are considered by all money-lending institutions (banks). Below, we have listed the key education loan eligibility criteria in a point-wise manner:

Education Loan Eligibility 
Indian Citizenship The applicant must be an Indian national.
Age Limit The applicant's age should be between 18 and 35 years
Academic Performance A strong academic profile with good marks in higher secondary (HSC) and graduation significantly improves chances of loan approval. 
Admission Letter The applicant must have received admission to a reputed 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's Credit Report A co-applicant, who can be a parent, guardian, spouse, or parent-in-law, is usually required. They must have a good credit score and a stable source of income.
Collateral (Optional) Banks may ask for collateral, such as property or fixed deposits, may be required for higher loan amounts.

Also Read:

Indian Banks Offering Education Loans for Studying Abroad Vidyalakshmi Education Loan
Public v/s Private Education Loan Providers Education Loan Calculator

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 become 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 

Check out the student loan eligibility criteria of different banks.

Banks in India Highlights
SBI Education Loan
  • Good interest rates
  • Loan up to INR 1.50 Crores
  • Minimum loan amount: Above INR 7.50 lakhs 
  • Upto 15 years repayment through EMI
  • Library/examination/lab fee
  • Travel costs/passage money for studying abroad
  • Processing charges: INR 10,000 for every application
ICICI Bank Education Loan
  • Interest rate: 9.85% onwards
  • Loan amount: Upto INR 2 crore
  • Eligibility: Minimum age should be 16 and maximum should be 35, Good academic record, Completed Class 12 or Diploma
  • Expenses covered: College fees, exam/lab/library fee, travel costs/passage money for studying abroad, books and equipment, computer costs covered if required by the course
PNB Student Loan
  • Available for technical/job-oriented professional courses/postgraduation courses (MCA, MBA, MS, etc.), courses by CIMA London, CPA in USA etc, Degree/Diploma programmes
  • Expenses covered: College fees, exam/lab/library fee, travel costs/passage money for studying abroad, books and equipment, computer costs covered if required by the course
  • Repayment: Maximum up to 15 years
Bank of Baroda Education Loan
  • No processing costs up to INR 7.50 lakhs
  • Free debit card
  • Zero documentation charges
  • No security up to INR 7.50 lakhs
  • Loan up to INR 150 lakhs
UCO Bank Education Loan
  • Maximum INR 20 lakhs
  • For studying abroad margin set is 15%
  • No processing charges involved
  • The repayment period set is 15 years
Federal Bank Study Loan
  • Loan amount up to INR 20 lakhs
  • Expenses covered: College fees, exam/lab/library fee, travel costs/passage money for studying abroad, books and equipment, computer costs covered if required by the course
  • The repayment period set is 15 years
Axis Bank Student Loan
  • Minimum loan amount: INR 50,000
  • Unsecured loan amount: Up to INR 75 lakhs
  • Expenses covered: Cost of studying, hostel charges, book charges, etc.
  • Pre-admission sanction letter issues
  • Eligibility: Minimum age is 18 years, Possession of a minimum 50% marks in HSC and graduation, admission obtained into career-oriented programmes
  • The repayment period set is 15 years
Canara Bank
  • Courses Eligible: Master's degree under STEM courses
  • Expenses covered: Tuition fees, cost of living, passage money
Avanse Education Loan

For students

  • Nationality: Applicant must be an Indian citizen
  • Age: The applicant should be 18 or older
  • Admission: Should have a confirmed admission before the final disbursal
  • Co-borrower: Should have a co-borrower who earns in India

For Co-borrowers

  • Who can be a co-applicant: The co-borrower should be an Indian citizen and must be a parent, legal guardian, sibling or other blood relative.
  • Bank account: Should have a bank account in India that allows them to sign cheques
  • Responsibility: Must be the primary debtor

Documents Required for Education Loans

Score Predictor

Predict your IELTS, TOEFL, and PTE in just 4 steps!

Share 12th Board, Percentage, english score
Get estimated scores or IELTS, TOEFL & PTE


Having the proper documents for an education loan is mandatory. Some documents are required to prove your eligibility for a student loan, while others are related to collateral. The documentation and formalities may vary across different banks when applying for a loan.

List of Documents Required for Education Loan: For Students

  • 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, and 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

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 the 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 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 the principal amount, the interest rate and the loan tenure. These are the most important factors to calculate your education loan.

RecommendationView All

Explore MS colleges in UK

University of Manchester

Manchester, UKPublic

1 courses
28.7 L - 28.7 L
1 courses
36.12 L - 36.12 L
1 courses
32.52 L - 32.52 L
University of Bristol

Bristol, UKPublic

1 courses
32.63 L - 32.63 L
University of Bath

Bath, UKPublic

3 courses
27.02 L - 30.59 L
University of Exeter

Exeter, UKPublic

1 courses
34.88 L - 34.88 L
University of Surrey

Guildford, UKPublic

1 courses
23.07 L - 23.07 L
University of Nottingham

Nottingham, UKPublic

1 courses
30.55 L - 30.55 L
University of East Anglia

Norwich, UKPublic

1 courses
22.28 L - 22.28 L
1 courses
22.31 L - 22.31 L
Is this recommendation relevant?
  • 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 an education loan.

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.

Q:   What are the required documents for getting student loans?

A:

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 to study in a foreign university?

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 recognised foreign university or institution.
  • Have a co-applicant.
  • Meet the minimum academic requirements.
  • Must have all required documents (Academic and personal).

Q:   Which are the common education loan rules in India?

A:

Here are basic and most popular rules which every student should know, if they are planning to borrow loan.

  • Age: Typically between 18–35 years. (Depends on Bank rules)
  • Courses/University: Students can get loans only for professional and job-oriented courses at a recognised university in India or abroad.
  • Co-Applicant: A co-applicant is mandatory to borrow an education loan.
  • Collateral Required: If you are borrowing INR 4 Lakhs, no collateral/security is required. Above this amount, you need to submit collateral (immovable property, fixed deposits, etc.).

Q:   Which bank gives an education loan easily?

A:

If you are eligibile and have good academic performance then every bank will offer you education loan ASAP. 

Specifically, here are the list of best education loans in India with esay application process:

Government Banks
  • State Bank of India Education Loan
  • Canara Bank Education Loan
  • Punjab National Bank Education Loan
  • Bank of Baroda Education Loan
Private Banks
  • ICICI Bank Education Loan
  • Axis Bank Education Loan
  • Kotak Mahindra Bank Education Loan
  • HDFC Bank Education Loan

Q:   What is the minimum salary for an education loan?

A:

The salary required to apply for an education loan depends on various factors such as the loan amount and repayment capacity. If you do not have a monthly salary, a collateral-backed education loan is an alternative option. Additionally, the Indian government offers education loans of up to INR 7.5 lakh without any collateral.

Note that, if you are CIBIL score is above 700 then there is high chance that you will get the education loan.

Q:   Does the University of Essex require IELTS?

A:

International students whose native language is not English must meet the University of Essex English language requirements to get admission. The university accepts IELTS scores as proof of English language proficiency. Mentioned below are the IELTS scores required for UG and PG admission at the university:

English Language Test

 Score

IELTS

Overall score of 5.5 to 8.0 with minimum of 5.5 to 7.5 in each section

The university also accepts the score of other English language tests such as TOEFL and PTE for admission to undergraduate and graduate programs:

English Language Test

 Score

TOEFL iBT

Overall score of 72 to 114

PTE

Overall score of 59 to 84 with minimum of 59 to 80 in each section

Also read: Required IELTS Score for UK Universities

Q:   How long does Hertfordshire University take to reply?

A:

After applying to Hertfordshire University UK, the applicants are going to receive an initial decision about their application within 2-3 working days. After the submission of the application and documents, the applicants are required to pay their tuition deposit. Then, complete the Sponsorship interview and the financial declaration. International students are required to pay a deposit of £5,000 before registration. The balance can be paid in line with the liability dates related to the year and entry of the semester.

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.

About the Author
author-image
Written by
Raj Vimal
Study Abroad Expert

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

Explore popular study destinations
Resources for you
Understand the process step by step by referring to these guides curated just for you
qna

Comments

(58)

m

manoj kumar

2 years ago

Hi I am having 12 Years of experience in Fire protection system, plan to do upgradation Fire related courses to develop and settle my career in abroad locations, please guide me what to do next?

Reply to manoj kumar

R

Rahul Singha

2 years ago

Hello Manoj. You can get in touch with our Shiksha Study Abroad Counsellors, who provide assistance with university admissions: https://studyabroad.shiksha.com/apply

Hello sir am Kato sebunya Emmanuel a Ugandan student I want to study in Italy MBBS what can I do maybe to get a scholarship there

Reply to emmanuel sebunya kato

R

Rahul Singha

3 years ago

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

k

kender kumar

3 years ago

I want to get Bank loan for the abroad study so plz suggest me how I fill the tuition fees of University.

Reply to kender kumar

R

Rahul Singha

3 years ago

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

r

ranveer

3 years ago

Hello sir, I want to study MBBS in Australia or UK. Can I get a 50 to 100% loan from any bank?

Reply to ranveer

R

Rahul Singha

3 years ago

Hello Ranveer. Most banks provide education loans for students wanting to study abroad. However, you would have to get in touch with the banks to understand the process of obtaining an Education Loan and complete the application that entails.

Hello sir I want to do masters in london university but financially we are not settled , can I get educational without any land documents kindly give your piece of advice sir .

Reply to marapalli vamshi

s

sachin kumar

2 years ago

ok

R

Rahul Singha

3 years ago

Hello Marapalli. The right person to ask this would be the bank you are planning to take an education loan from. They will be able to give you other alternatives to availing of an education loan.