Eligibility for Undergraduate Education Loans in India: What You Need to Know?

Education costs have been rising sharply, with inflation around 5-5.5% but education costs increasing by 11-12%. This might leave you wondering how to fund your undergraduate education. The answer? Education loans from private banks, public banks, or NBFCs. But do you know if you're eligible? Understanding the criteria is crucial to avoid loan rejections, delays, or higher interest rates. In this guide, we’ll cover everything you need to know about undergraduate education loan eligibility in India, so you can confidently move toward your academic goals.

Different Lenders for Undergraduate Loans in India

Below is a table that shows some of the top banks in India and how much they can offer for undergraduate studies. 

Eligibility for Undergraduate Education Loan in India

Depending on the lender chaos for an education loan the eligibility may differ between them. However, the overall eligibility criteria are the same. Below is a brief analysis of all eligibility criteria is there for undergraduate education loans in India - 

Document Required for Undergraduate Education Loan in India

Here’s a list of the common documents required for an undergraduate education loan in India:

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  Loan Application Form – Duly filled and signed.
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  Admission Proof – Admission letter from the university or college.
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  Academic Records – Previous education certificates like Class 10th and 12th mark sheets.
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  Identity Proof – Passport, Aadhar Card, Voter ID, PAN Card, or Driving License.
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  Address Proof – Utility bills, Aadhar Card, Voter ID, Passport, or Rent Agreement.
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  Income Proof of Co-applicant – Salary slips, income tax returns (ITR), or Form 16 of the co-applicant (typically a parent or guardian).
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  Bank Statements – Bank account statements of the last 6 months (both applicant and co-applicant).
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  Fee Structure – Document from the institution specifying course fees.
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  Photographs – Passport-size photographs of both the applicant and co-applicant.
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  Collateral Documents (if applicable) – Property documents or fixed deposit receipts if collateral is required.
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  Proof of Age – Birth certificate, school leaving certificate, or passport.
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  Guarantor Documents (if applicable) – Identity, income, and address proof of guarantor (if required by the lender).

These documents may vary slightly depending on the lender, but this list covers the standard requirements for most banks and financial institutions.

Securing an education loan for your undergraduate studies in India is a great way to make higher education affordable despite rising costs. By understanding the eligibility criteria and knowing what documents to prepare, you can simplify the loan process and avoid unnecessary delays. Whether you opt for a loan from a private bank, public bank, or NBFC, the key is to be well-prepared and informed about your options.

And if you're planning to study abroad, GyanDhan can help you with that too! Check your eligibility for an education loan with GyanDhan, and get access to the best loan options to fund your international education journey.