An education loan is a financial tool designed to cover academic costs like tuition, books, and living expenses, empowering students such as you to pursue education without any worry. However, when you apply for an education loan, you have to ensure you meet the eligibility requirements in order to get the student loan approved. Let’s find out more about education loan eligibility.
Key highlights:
- What You Must Know about Education Loan Eligibility
- Robust Student Profile for Fast Student Loan Approval
- FAQs
What You Must Know about Education Loan Eligibility
Criteria for approval may vary across financial institutions, as each has its own specific requirements. Some key aspects will include age, citizenship, academic profile, documents, etc.
Basic Student Loan Eligibility Criteria
- Students can apply if they:
- Are Indian citizens who are 18 or older
- Have a confirmed admission before the final disbursal
- Have a co-borrower who earns in India
- Co-borrowers also need to meet the following criteria:
- Must be an Indian citizen and should be a parent, legal guardian, sibling or other blood relative
- Must have a bank account in India that allows them to sign cheques
- Must be the primary debtor
Some Important Documents for Smooth Education Loan Approval
For easy approval of private student loans, ensure all your important documents are in place. Here is the list of some important documents for your reference:
- For students
- 2 colour passport-sized photos
- Photo ID
- Residence proof
- Date of birth proof
- Signature verification
- Academic documents
- Proof of admission
- Fee structure
- For co-applicant
- 2 colour passport-sized photos
- Photo ID
- Residence proof
- Date of birth proof
- Signature verification
- Income proof
- Collateral documents (only for a secured student loan)
- 8-month bank statement
- Relationship proof
Robust Student Profile for Fast Student Loan Approval
Whether you want to opt for an education loan to study abroad or to study in India, your student profile has to be impressive. Lenders will also evaluate your student profile to determine your employability potential.
Therefore, parameters such as your academic performance, etc., will be analysed. Your co-applicant’s financial background will also be examined. If you tick all the boxes, the student loan will be approved. Here are some important parameters that financial institutions will check.
Academic Performance
Your academic track record is a primary factor in the loan approval process, as good academic performance can lead to professional success. Deserving students with good grades demonstrate a high level of dedication and seriousness toward their career goals, which significantly reduces the risk for lenders. Therefore, your academic scores achieved in the exams, such as your 10th, 12th and/or graduation, will be thoroughly evaluated.
Entrance Exams
Your entrance exam scores will also be checked when you apply for student loans. Some entrance exams are:
- Scholastic Assessment Test (SAT)
- American College Testing (ACT)
- Management Aptitude Test (MAT)
- Common Admission Test (CAT)
- Graduate Record Examination (GRE)
- Graduate Management Admission Test (GMAT)
Pedigree of the University
The reputation and ranking of the chosen university serve as a crucial parameter for lenders during the loan approval process. Students from such reputed colleges benefit from stronger campus placement records and higher starting salaries. When a student secures admission to a prestigious university, it provides the lender with greater confidence in the applicant’s future repayment capacity.
Continuity in Education
Financial institutions will examine a student’s educational timeline, as a consistent and uninterrupted academic history is often viewed as a sign of stability and commitment. While minor gaps to gain work experience or pursue upskilling courses can be justified in some cases, a clear continuity in education suggests that a student is focused towards their academics and career path.
Please remember, as a part of the process, your co-borrower’s financial background will be examined too. If you tick all the boxes, your student loan will be approved. The primary reasons for rejection of the student loan can include incomplete documentation, bad credit history, poor academic performance, or if the course or university is not approved by your preferred education loan provider.
Also Read: Education Loan Sanction Letter 2026: Meaning, Importance and Key Details
Frequently Asked Questions (FAQs)
Who is eligible for an education loan?
You must be an Indian citizen aged 18 or older. You are required to have confirmed admission to a recognised full-time undergraduate, postgraduate, or diploma program, whether in India or abroad. Additionally, lenders look for a strong academic record and typically require a co-applicant such as a parent, spouse, or guardian to co-sign the loan. The specific criteria may vary slightly depending on the chosen financial institution.
What is the maximum income for student loans?
There is no specific income limit for student loans because the approval of the student loan will depend on several factors, such as documents, basic eligibility, student profile and the co-applicant’s financial background.
So, if the eligibility criteria for student loans are clear to you, now is the perfect time to apply for study loans. At Avanse Financial Services, we offer student loans with multiple benefits such as 100% finance, quick loan sanctions and flexible repayment options. If you have any queries about student loans, education loan interest rate or your academic journey or want, please feel free to contact us. We will be glad to assist you.
