As most of Indians prefer to study abroad, most of the banks provide education loan, however, they have set basic eligibility criteria to avail the loan.

And availing loan, can even help the co-applicant in saving tax, as you will be eligible for a tax rebate for the interest you pay on an education loan under Section 80-E of the Income Tax Act 1961.

What are the Expenses considered for loan?

• Fees payable to college/school/hostel
• Examination/Library/Laboratory fees
• Purchase of Books/Equipment/Instruments/Uniforms, Purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course)
• Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition fees for the entire course)
• Travel Expenses/Passage money for studies abroad
• Cost of a Two-wheeler upto Rs. 50,000/-
• Amount of Loan can be availed
• For studies in India, maximum Rs. 10 lacs
• Studies abroad, maximum Rs. 30 lacs

What are the Documentation Required?

• Completed Education Loan Application Form.
• Mark sheets of last qualifying examination
• Proof of admission scholarship, studentship etc
• Schedule of expenses for the specified course
• 2 passport size photographs
• PAN Card of the student and the Parent/ Guardian
• Borrower's Bank account statement for the last six months
• Income tax Returns/ IT assessment order, of last 2 yrs (If IT Payee)
• Brief statement of assets and liabilities, of the Co-borrower
• Proof of Income (i.e. Salary slips/ Form 16 etc. if applicable)

Security and Amount

Margin required:

• For loans up to Rs.4.0 lacs : No Margin is required
• For loans above Rs.4.0 lacs:
• Studies in India: 5% margin is required
• Studies Abroad: 15% margin is required

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