FAQ on educational loans ( Part 1) | Kalvimalar - News

FAQ on educational loans ( Part 1)- 25-May-2023

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1. What is Education Loan?

Education loans are provided by banks to students desirous of pursuing graduation, diploma, certificate and post-graduate courses in India and abroad. Apart from the tuition fees, other expenses such as accommodation fees, 

purchase of equipment and other expenses related to the course are covered by the education loan.

As there is no prior loan history for students, parents or guardians should sign an undertaking.  Also, if you require loans over 7.5 lakhs, banks would require documents of property or any immovable asset as a pledge. 

2. Is there any age limit for availing education loan?

There is no age limit for an individual to qualify for an education loan. The joint applicant/borrower / co-borrower should be a minimum of 21 years and a maximum of 70 years.

3. What are courses for which bank educational loans are available?

Educational loans are also available for all types of courses approved by the state and central government, UGC/ AICTE. It also includes diploma and diploma courses. Educational loan is also available to study abroad, except for diplomas.

4. Can students pursuing studies through distance education or part time studies get education loan?


5. Can the student having availed education loan get the college leave certificate immediately after completing the degree or will the applicant get the certificate after completely clearing the loan?

The student can get the educational certificates from the college immediately after completing the studies.

6. Does the applicant need to be a school or district topper to get an education loan?

The student needs to get minimum marks based on the below categorisation.

General 60%

OBC 55%

SC & ST 50%

7. Does the school help a student apply for an education loan?

Students may seek guidance regarding educational loans and apply with the help of senior teachers and principals. 

8. After applying, within how many days will the education loan be disbursed? What is the study period?

Education loan takes about 15 days for  the bank manager's approval. Once it's approved, you need to execute a bond.  In most cases, the banks pay the college directly. 

9. When is the right time to apply for an education loan?

Immediately, after receiving the college admission letter (ADMIT CARD) for the students. 

10. Can the documents required for availing education loan be transferred from one bank to another bank?

Not at all. However, the applicant should confirm with the branch manager. 

11. To apply for education loan, does the applicant need to produce college joining certificate?

Yes. A letter of admission must be submitted.

12. What are the supporting documents for education loan?

o Class X and Class XII Merit Certificate. 

o Aadhaar card

o Domicile Certificate, Election ID,  Ration card, Driving License etc

o Caste certificate

o Income certificate

o Certificate in case of first generation graduate 

o PAN card for both students and parents 

o College ID, Bonafide certificate

o List of fee to be paid in college

o Details of courses for study

o Photocopies of Confirmation Letter with passport 

o 2 passport size photographs

o Last six month bank state of the beneficiary. 

o Last two years income tax returns documents

o Nativity certificate 

o PAN card

o Collateral documents for loan over 4 lakh  

o First generation graduate certificate (Not Mandatory)

13. What are the benefits of education loan?

o Tuition fees and accommodation charges

o Fees towards exam, library and research. 

o Conditional bank balance 

o Cost of books, uniforms and other essential materials 

o Travel costs (including fares for some flights)

14. Should an education loan applicant apply only Vidyalakshmi portal? 


15. Which is the best PORTAL for finding educational loan information? 

Vidyalakshmi portal is the best for applying for education loan.

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