Education Loan Rules | Requirements and Eligibility

The education loan requirements are far more simpler than earlier. The Indian government has ordered all the banks to issue education loans for all eligible candidates. Students from poor families and below the poverty line, everyone will get education loans based on the marks that they have secured.

Eligibility for Education Loan

Education Loan Requirements

Education loans will be available for all the courses available in the recognized institutions. Courses those have future job prospects like graduate courses (B.com., B.Sc., B.A., B.C.A., etc.), Master degree courses (M.B.A., M.C.A., etc.), technical educations (engineering, medicine, agriculture, law, management, etc.), courses offered by special institutions like IIT, NIFT, IIM and Diploma courses like C.A., C.F.A., ICWA etc. will have the eligibility to get loans.

However, banks will hesitate to provide loans for courses which don’t have jobs availability. This hesitation is due the fear of the doubt on repayments. Also, students from unrecognized educational institutions will not be able to obtain an education loan.

Certain requirements are mandatory to be eligible for an education loan. The education loan requirements are as follows:

  • The student should be an Indian citizen.
  • He/she should have chosen a course that is considered to have more job opportunity.
  • Student should have joined in a Government recognized institution.
  • The cumulative percentage of the +2 marks should be 50% and above for SC and ST categories and it is 60% and above for other categories.

How much will be education loan amount?

A maximum of Rs. 10 lakhs will be available for any students from any state in India. Indian students studying abroad will get up to Rs. 20 lakhs as education loan.

If you want more than the above stipulated amount as your loan amount, it will be decided by the concerned bank itself based on the criteria like the student’s marks scored or the job prospects of the course chosen or based on the parents’ income level. However, it is the choice of the bank in finalizing a higher amount.

Education loan requirements and procedures are easily understandable and can obtain it for your future education if you have awareness about the loan processes and timely initiative. Have a bright future through a better career.