The Ultimate Education Loan Guide

Who Can Apply for an Education Loan?

Indian nationals who have secured admission to a recognised course in India or abroad. The student is the primary borrower; parents, spouse, or siblings are typically co-borrowers.

What Courses Are Eligible?

• Graduate and postgraduate courses at recognised Indian institutions
• Courses at premier institutions (IITs, IIMs, NITs, and equivalents)
• Overseas courses — UG and PG at recognised universities abroad
• Professional courses — medicine, engineering, management, law
• Vocational and skill development courses (specific lenders)

Document Checklist

Student Documents

• Aadhaar Card and PAN Card
• Admission letter from the institution
• Fee structure / cost of study statement
• Academic records (10th, 12th, graduation marksheets)
• Entrance exam scorecard (if applicable)

Co-borrower (Parent / Guardian) Documents

• Aadhaar Card and PAN Card
• Income proof (salary slips or ITR)
• Bank statements (6 months)
• Address proof
• Collateral documents (for secured loans above ₹7.5 lakhs typically)

Key Things to Understand

Moratorium Period

Repayment typically begins 6–12 months after course completion or upon getting employment, whichever is earlier. Interest may or may not accrue during this period depending on the lender.

Tax Benefit

Interest paid on education loans qualifies for deduction under Section 80E of the Income Tax Act — with no upper limit — for up to 8 years after repayment begins.