🎓 How to Get a Student Loan in India

Education in India or abroad can be expensive, and student loans help bridge the gap. Here’s a step-by-step guide:

✅ 1. Eligibility Criteria

Most banks and NBFCs require the student to:

  • Be an Indian citizen.
  • Have secured admission to a recognized course (India or abroad).
  • Be 18 years or older (co-applicant/guardian required if underage).
  • Have a co-borrower (usually a parent/guardian) with a steady income.

✅ 2. Courses Covered

Student loans are available for:

  • Professional courses (engineering, medical, law, MBA, etc.)
  • Graduate/Postgraduate degrees
  • Diploma/certification courses (in reputed institutions)
  • Study in India or abroad (with different rules)

✅ 3. Loan Amount

  • In India: Up to ₹10–15 lakh
  • Abroad: Up to ₹20–50 lakh (some lenders offer more)
  • Collateral-free loans: Up to ₹7.5 lakh (as per RBI norms)
  • Larger loans may require collateral security

✅ 4. Documents Required

  • Admission letter from university/institution
  • Academic records (10th, 12th, degree mark sheets)
  • Identity & address proof (Aadhaar, PAN, etc.)
  • Income proof of co-applicant (salary slips/ITR)
  • Collateral documents (if required)
  • Passport (for studying abroad)

✅ 5. Top Banks & Lenders for Student Loans in India

🏦 Public Sector Banks:

  • State Bank of India (SBI) – Scholar Loan
  • Bank of Baroda – Vidya Lakshmi Scheme
  • Punjab National Bank – Udaan Loan

💼 Private Banks:

  • HDFC Bank Education Loan
  • ICICI Bank Education Loan
  • Axis Bank Education Loan

📊 NBFCs:

  • InCred
  • Avanse
  • HDFC Credila
  • Auxilo
  • Leap Finance (for abroad)

✅ 6. Application Process

You can apply online or offline:

Online:

  • Visit the bank’s or NBFC’s official website
  • Fill out the application form
  • Upload documents
  • Get loan approval

Offline:

  • Visit the bank branch with required documents
  • Submit form and documents
  • Loan officer processes application

✅ 7. Repayment Terms

  • Moratorium period: Course duration + 6–12 months
  • Repayment tenure: 5–15 years (after moratorium)
  • Interest: 8.5% to 14.5% depending on lender and loan type
  • Subsidy: Available under government schemes for economically weaker sections

✅ 8. Government Schemes & Subsidies

🎯 Vidya Lakshmi Portal

A one-stop portal to apply for multiple education loans and track applications.
🔗 https://www.vidyalakshmi.co.in

🎯 Central Sector Interest Subsidy Scheme (CSIS)

  • 100% interest subsidy during the moratorium period
  • For families with income < ₹4.5 lakh/annum
  • Only for domestic courses and banks under IBA

✅ 9. Tips Before Applying

  • Compare interest rates and loan processing fees
  • Understand co-borrower liabilities
  • Check for prepayment penalties
  • Ask about margin money requirement
  • Consider education loan insurance

📌 FAQs

Q. Can I get a student loan without collateral?
Yes, up to ₹7.5 lakh. Higher amounts may require collateral.

Q. Can I get a loan before admission?
Some lenders offer pre-admission sanction letters, especially for study abroad.

Q. What if I don’t get a job after studying?
Most banks offer extensions or flexible repayment plans, but interest still accrues.

If you want a custom article for your blog or more details on specific lenders (like SBI Scholar loan or HDFC Credila for study abroad), just let me know!

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