Student Education Loan Application in Public Banks

Education loans provided by public banks have become a savior for numerous students, without crushing the academic dreams of many students. Banks governed by the government are known as Public Banks. If you are a student who is in need of a higher loan amount and wants to derive lower interest rates then public banks are your way to go.

 

Public banks are providing competitive interest rates, flexible repayment options, and often extended grace periods, which ultimately reduces the financial strain on students and their families. If you’re planning to apply for an education loan from a public bank, you will have to fill out the loan application form or you can also go to the nearest branch. 

 

Students who secure education loans from public banks avail of numerous benefits including lower interest rates, tax benefits, government schemes, and many more. We have listed some of the advantages of securing an education loan from public banks.

 

• 
  Lower Interest Rates - Compared to private lenders, public sector banks provide education loans at more affordable interest rates.

• 
  Subsidy Schemes - Eligible students from economically weaker sections can avail of government interest subsidy schemes like the Dr. Ambedkar Interest Subsidy Scheme.

• 
  No Prepayment Penalty - Public sector banks generally do not charge penalties for early loan repayment.

• 
  Tax Benefits - Education loans from public banks qualify for tax deductions under Section 80E of the Income Tax Act.

The PM-Vidya Lakshmi portal offers a solo window for students to acquire information and details about various loan schemes provided by public and private banks and make applications for them. The portal also facilitates the submission of applications for education loans and interest subsidy benefits. You can apply for an education loan by following the below steps:

 

Step 1: Visit the PM-Vidya Lakshmi portal and register yourself by providing your name, email ID, and mobile number, and create a secure password. After successful registration, log in using your email ID and password.

 

Step 2: Once logged in, fill out the Common Education Loan Application Form (CELAF). Enter your personal details, academic qualifications, course information, and other required details. Ensure all the information is accurate in the application form.

 

Step 3: After completing the application form, search for education loan schemes offered by various banks. Compare different loan options based on eligibility, interest rates, and terms. Select the loan scheme that suits your needs and click on “Apply”.

 

Step 4: Your application will be automatically sent to the bank or banks you have chosen. The bank will review your application and contact you in case they require any additional documents for processing your loan application. 

 

Step 5: You will receive SMS notifications about the status of your application at every stage. You can also log in to your PM-Vidya Lakshmi dashboard at any time to check the current status of your loan application.

 

Step 6: Once the bank approves your loan, they will update the status as Sanctioned or Disbursed on the portal. The loan amount will be disbursed according to the bank’s process.

 

Important note: Keep in mind that you can apply for a loan from a maximum of three banks by filling out a single loan application form.

The procedure to apply for an abroad education loan should always begin with exploring and comparing different lenders and their products. Borrowers win half of their battle as GyanDhan evaluates your profile and chooses the best lender for them. To apply for an abroad education loan through GyanDhan, you need to follow five simple steps mentioned below:

 

Step 1: Check your loan eligibility.

 

Step 2: Our expert education loan counselor will check and evaluate your profile.

 

Step 3: The team of GyanDhan will either arrange a doorstep pickup for your documents or will ask you to upload your documents.

 

Step 4: Once your documents are uploaded, GyanDhan will move forward with the rest of the formalities.

 

Step 5: Disbursement of the amount will be done by the bank as per schedule.

 

State Bank of India, is one of the greatest public banks in India. SBI is a popular choice for education loans amongst students and their parents. The education loan schemes of SBI are designed to help students and their parents in financing their education-related expenditures.

 

You will be glad to know that SBI provides both online and offline modes for applying for an education loan. 

Offline Application Mode:

To apply for an education loan in the offline mode, you need to go to the nearest SBI branch and initiate the procedure with the bank. If you decide to go with the offline mode, be prepared to make countless bank visits for the submission of the documents.

Online Application Mode:

To apply for an education loan in the online mode, you need to complete the below-mentioned steps.

 

• 
  Begin by visiting the official website of the State Bank of India.
• 
  On the homepage, you will see a 'Loans' or 'Education Loans' tab. Click on it to access information and details related to education loans.
• 
  SBI offers various education loan schemes, so vigilantly select the one that perfectly matches your needs. Go through the details, terms, and conditions of the chosen scheme thoroughly.
• 
  Click on 'Apply Now' or 'Online Application', or you can visit on the application form from here.
• 
  You will be prompted to fill in your personal, academic, and financial details. Ensure that you have all the required documents in your hand, including identity proof, address, academic records, and course admission letter.
• 
  Enter the details of the collateral and the co-applicant. Collateral may include property documents, fixed deposits, or other assets.
• 
  Scan your documents and upload the copies during the application process. 

 

Did you know that GyanDhan is in partnership with SBI? So if you apply for an abroad education loan at SBI through GyanDhan you are eligible for a free doorstep document collection.

Bank of Baroda (BOB) is one of India's leading public sector banks, known for its broad range of financial products and services. Established in 1908, BOB has a powerful presence not only in India but also in several countries around the world. When it comes to education loans, BOB offers competitive options to help students pursue their dreams of higher education both in India and abroad.

 

Bank of Baroda provides two main channels for applying for an education loan: online and offline. 

Offline Application Mode:

To apply for an education loan offline, find the nearest Bank of Baroda branch in your locality. Explore various loan options, fill out the application form accurately, and gather all the required documents such as ID, address proof, academic transcripts, and admission letter. Provide your application and documents to the bank's loan department for examination and potential approval based on their criteria.

Online Application Mode:

Follow these steps to complete the online application process at Bank of Baroda:

 

• 
  Begin by visiting the official website of the Bank of Baroda.

• 
  Look for the option 'Education Loan' or 'Loans' section on the website's homepage. Click on it to access details related to education loans.

• 
  Before applying for the education loan, ensure you meet the eligibility criteria which is set by BOB. 
• 
  BOB offers numerous education loan schemes for different purposes, such as studies in India or abroad. Choose the one according to your needs and which suits them the best.

• 
  Click on the option to apply for an education loan online. You will be directed to an application form after which you need to fill in all the required details accurately.

• 
  Upload the scanned copies of necessary documents, such as your admission letter, academic records, identity proof, address proof, etc.

• 
  Examine all the details you've provided, and once you're sure it's correct, submit the application.

• 
  After submission, you will get an application reference number. This reference number can be used to track the status of your application online.

• 
  Bank of Baroda will check your application, and if everything is in order, they will approve your loan.

Union Bank of India is one of the well-known public sector banks in India that offers education loans to eligible students to pursue higher education in India and abroad. These loans help students and their parents finance the cost of tuition fees, books, accommodation, and other related expenses. Both online and offline modes are available to apply for an education loan from Union Bank of India. 

Offline Application Mode:

To obtain an education loan from Union Bank of India through the offline mode, you need to visit the nearest branch. Then you can collect the application form and fill it out accurately, attach required documents, and submit it through the representative. Stay updated and in touch with the branch for application updates. Once approved, the bank will disburse the loan per the agreed terms.

Online Application Mode:

Follow these steps to complete the online application process at Union Bank of India:

 

• 
  Visit the official website of Union Bank of India.
• 
  Click on the "Education Loan" Section which is usually located in the "Retail" or "Personal Banking" section.
• 
  Click on the "Education Loan Scheme" option to access full information about the education loan, including eligibility criteria, interest rates, and documentation requirements.
• 
  Fill Out the online application form: 
• 
  Upload the scanned copies of necessary documents, such as proof of identity, address, admission letter, academic records, and collateral documents (if applicable). You need to make sure that all documents meet the bank's requirements.
• 
  Examine your application form and documents vigilantly before submitting. Any inaccuracies or incomplete information may delay the loan approval process.
• 
  After verifying the details, submit the online application. You will receive an acknowledgment or reference number for your application.
• 
  You can check the status of your application online using the reference number provided. The bank will communicate with you regarding the status of your application.

 

Did you know that Union Bank of India is the only public bank that provides abroad education loans of up to INR 40 Lakh, without any collateral. The Bank approves unsecured abroad education loans for selected courses and universities. To check if your targeted university is listed in the Union Bank’s pre-approved list, request a callback.

Punjab National Bank (PNB) is one of the prime public sector banks in India, offering a range of financial products and services, including education loans to help students pursue higher education in India and abroad. These loans cover tuition fees, living expenses, and other related costs. You can choose between online and offline application modes to apply for an education loan from Punjab National Bank.

Offline Application Mode:

To apply for an offline education loan through Punjab National Bank (PNB), follow the below-mentioned steps:

 

• 
  Find your nearest PNB branch and visit during their working hours.
• 
  Request for a physical application form and fill it out manually.
• 
  Submit photocopies of required documents, such as academic transcripts, admission letter, identity proof, address proof, income proof, and collateral documents if applicable.
• 
  The bank will verify your application and might interview you if necessary.
• 
  If approved, you'll receive an offer letter with loan terms to review and accept.

Online Application Mode:

Follow these steps to complete the online application process at PNB:

 

• 
  Visit official website of Punjab National Bank.
• 
  Find the "Education Loan" section on the website's homepage or you can use the search function to find it.
• 
  Click on the "Apply Now" or "Online Application" link to access the education loan application form. Fill in all the required details accurately, including personal details, educational details, and loan amount required.
• 
  Upload the scanned copies of the necessary documents, such as academic transcripts, admission letter, identity proof, address proof, income proof, and collateral documents (if applicable). Make sure that the documents meet the bank's requirements.
• 
  Double-check all the details provided and documents uploaded. Make any necessary corrections. Once you are satisfied with the application, submit it.
• 
  After submission, your application will be processed by PNB. You might be contacted by bank representatives for further verification or details if needed.
• 
  If your application is accepted, you will receive an offer letter outlining the terms and conditions of the loan. Carefully examine and accept the offer.

Canara Bank was established in 1906, with its headquarters in Bengaluru, became a nationalized bank in 1969. After it’s merger with Syndicate Bank on 1st April 2020, it is now the fourth-largest public bank by assets. Canara Bank offers 100% coverage of the total education cost. The education loan schemes offered by the Canara bank are popular for their flexibility, competitive interest rates, and supportive terms.

Offline Application Mode:

To apply for a Canara Bank abroad education loan, applicants must fulfill the following steps.

 

• 
  Visit the nearby Canara Bank branch in your locality and inquire about the available student loan offerings.
• 
  Check the available Canara Bank education loan for abroad schemes and related education loan interest in Canara Bank.
• 
  Determine the most suitable loan product for your overseas education requirements, considering your eligibility and the coverage provided.
• 
  Obtain the list of documents required to initiate the loan application process.
• 
  Revisit the bank to present the necessary documents and commence the processing of your study abroad loan application.

Online Application Mode:

Follow these steps to complete the online application process at Canara Bank:

 

• 
  Visit the official website of Canara Bank.
• 
  On the homepage, you will see a 'Loans' or 'Education Loans' tab. Click on it to access information and details related to education loans.
• 
  Canara Bank offers various education loan schemes, so vigilantly select the one that perfectly matches your needs. Go through the details, terms, and conditions of the chosen scheme thoroughly.
• 
  Click on 'Apply Now' or 'Online Application', or you can visit on the application form from here.
• 
  You will be prompted to fill in your personal, academic, and financial details. Ensure that you have all the required documents in your hand, including identity proof, address, academic records, and course admission letter.
• 
  Enter the details of the collateral and the co-applicant. Collateral may include property documents, fixed deposits, or other assets.
• 
  Scan your documents and upload the copies during the application process. 

Bank of India is a foremost commercial bank with its headquarters in Mumbai. The bank has 5100 branches as of 31st December 2024, including 56 offices outside India, which includes five subsidiaries, five representative offices, and one joint venture. Bank of India provides a broad range of banking products and financial services to its customers.

Offline Application Mode: 

To obtain an education loan from Bank of India through the offline mode, you have to visit the nearest branch. There you can request for an application form and fill it out accurately, attach required documents, and submit it through the representative. Stay updated and in touch with the branch for application updates. Once approved, the bank will disburse the loan per the agreed terms.

Online Application Mode: 

Follow these steps to complete the online application process at Bank of India:

 

• 
  Visit the official website of Bank of India.
• 
  Click on the "Education Loan" Section which is usually located in the "Personal Banking" section.
• 
  Bank of India offers various education loan schemes, so carefully select the one that perfectly matches your needs. Go through the details, terms, and conditions of the chosen scheme thoroughly.
• 
  Fill Out the online application form: 
• 
  Upload the scanned copies of necessary documents, such as proof of identity, address, admission letter, academic records, and collateral documents (if applicable). You need to make sure that all documents meet the bank's requirements.
• 
  Examine your application form and documents vigilantly before submitting. Any inaccuracies or incomplete information may delay the loan approval process.
• 
  After verifying the details, submit the online application. You will receive an acknowledgment or reference number for your application.
• 
  You can check the status of your application online using the reference number provided. The bank will communicate with you regarding the status of your application.

Central Bank of India Bank Limited is one of the oldest and greatest commercial banks in India. The bank has 4730 branches, 5319 ATMs, and 4 extension counters across 27 Indian states and three Union Territories. Central Bank of India provides a broad range of banking products and financial services to corporate and retail customers.

Offline Application Mode:

To apply for an education loan in the offline mode, you need to go to the nearest Central Bank of India branch and initiate the procedure with the bank. If you decide to go with the offline mode, be prepared to make countless bank visits for the submission of the documents.

Online Application Mode:

To apply for an education loan in the online mode, you need to complete the below mentioned steps.

 

• 
  Begin by visiting the official website of Central Bank of India.
• 
  On the homepage, you will see a 'Loans' or 'Education Loans' tab. Click on it to access information and details related to education loans.
• 
  The Central Bank of India offers various education loan schemes, so vigilantly select the one that perfectly matches your needs. Go through the details, terms, and conditions of the chosen scheme thoroughly.
• 
  Click on 'Apply Now' or 'Online Application', or you can visit on the application form from here
• 
  You will be prompted to fill in your personal, academic, and financial details. Ensure that you have all the required documents in your hand, including identity proof, address, academic records, and course admission letter.
• 
  Enter the details of the collateral and the co-applicant. Collateral may include property documents, fixed deposits, or other assets.
• 
  Scan your documents and upload the copies during the application process. 

Founded in 1916 by Athi Krishna Chettiar & M. A. Venkatarama Chettiar, Karur Vysya Bank is one of the leading public-sector banks in India. The bank is headquartered in Karur, Tamil Nadu, attracting many students residing in the same region for education loans. Karur Vysya Bank education loans include expenses such as college fees, hostel fees, books, equipment fees, travel money, etc., for overseas education. It also takes into consideration the building fund deposits, caution deposits, and all the refundable deposits.

Offline Application Mode: 

Submit all the required documentation to your nearest branch. Request the application form and, after carefully filling it out, submit it to the appropriate official together with the required papers.

Online Application Mode: 

Follow these steps to complete the online application process at Karur Vysya Bank:

 

Step 1: Go to official website of Karur Vysya Bank .

Step 2: Click on 'Menu'. 

Step 3: Select 'Loans' from the dropdown menu.

Step 4: Go to the 'Education Loans' tab.

Step 5: On the loan page, click 'Read More' under the loan for which you want to apply.

Step 6: On that screen, click the 'Apply Online' button.

Step 7: After reading the terms and conditions, click 'Accept' on the pop-up screen.

Step 8: You will be directed to the PM-Vidya Lakshmi website to complete your loan application.

When considering taking an education loan from a public bank, the Bank of Maharashtra education loan turns out to be one of the best options. With 30 million customers availing of its customer-friendly banking services through its 2263 branches spread across the country, the Bank of Maharashtra student loan offers loans of up to INR 10 Lakh to study in India and up to INR 20 Lakh to study abroad.

Offline Application Mode: 

To apply offline, visit the nearest Bank of Maharashtra branch with the required documents. The Bank of Maharashtra education loan form is available in the banks. However, It is advised that you register on the website before visiting the bank to apply.

 

Before you initiate the application, go through the details of the Bank of Maharashtra education loan to make an informed decision. Apply only if the Bank of Maharastra education loan matches your concerns.

Online Application Mode: 

To apply online, follow the steps below:

 

• 
  Visit the official website of the Bank of Maharashtra
• 
  Click the tab ‘Apply now’
• 
  Fill in your details and register. 

Once you do this, the Maharashtra bank education loan department will get in touch with you. Alternatively, you can apply for an education loan from the Bank of Maharashtra through the PM-Vidya Lakshmi portal.

 

Founded in 1907, Indian Bank has established a robust network of branches spanning across the entire nation. However, a pivotal development took place in 2020 when Indian Bank merged with Allahabad Bank. This merger had the consequential effect of transferring all customers of Allahabad Bank to Indian Bank, effectively bringing an end to the independent operations of Allahabad Bank. Indian Bank provides education loans to study both in India and abroad as well.

Offline Application Mode: 

To apply for an education loan offline, find the nearest Indian Bank branch in your locality. Explore various loan options, fill out the application form accurately, and gather all the required documents such as ID, address proof, academic transcripts, and admission letter. Provide your application and documents to the bank's loan department for examination and potential approval based on their criteria.

Online Application Mode: 

Follow these steps to complete the online application process at Indian Bank:

 

• 
  Visit the Indian Bank’s website. 
• 
  From the options given on the horizontal bar, choose the product and then choose the loan product. 
• 
  Once you have clicked on it, you will see different loan products that are offered by Indian Bank. 
• 
  From the given list you will have to choose the education loan option. 
• 
  A new page will open in which you will find an option “Apply for Loan”, click on it, and then you will be redirected to a new page. 
• 
  Fill in the required details and attach the required documents. Once all of this is done your application can be successfully submitted to the bank. 

India Overseas Bank (IOB) is a public sector bank in India that offers education loans through various schemes and helps students pursue higher education. Regular full-time degrees and full-time management courses are eligible for the education loan scheme. 

Offline Application Mode: 

To obtain an education loan from the Bank of India through the offline mode, you have to visit the nearest branch. There you can request for an application form and fill it out accurately, attach the required documents, and submit it through the representative. Stay updated and in touch with the branch for application updates. Once approved, the bank will disburse the loan per the agreed terms.

Online Application Mode: 

Follow these steps to complete the online application process at Indian Overseas Bank:

 

• 
  Visit the official website of Indian Overseas Bank.
• 
  Click on the "Education Loan" Section which is usually located in the "Personal Banking" section.
• 
  Click on the "Apply Now" or "Online Application" link to access the education loan application form. Fill in all the required details accurately, including personal details, educational details, and loan amount required.
• 
  Upload the scanned copies of the necessary documents, such as academic transcripts, admission letters, identity proof, address proof, income proof, and collateral documents (if applicable). Make sure that the documents meet the bank's requirements.
• 
  Double-check all the details provided and documents uploaded. Make any necessary corrections. Once you are satisfied with the application, submit it.
• 
  After submission, your application will be processed by IOB. You might be contacted by bank representatives for further verification or details if needed.
• 
  If your application is accepted, you will receive an offer letter outlining the terms and conditions of the loan. Carefully examine and accept the offer.

To apply for an education loan at a public bank, you are required to submit or upload the following documents.

Applicant's documents:

• 
  Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.
• 
  Education loan application form.
• 
  Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ driving license/ Aadhaar card.
• 
  Passport 
• 
  Past academic record.

  • 
    10th standard mark sheet
  • 
    12th standard mark sheet
  • 
    Undergraduate result (semester-wise)
• 
  Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
• 
  Proof of admission: admission letter (A conditional admission letter is also applicable).
• 
  Statement of expenses.
• 
  2 passport-size photographs.
• 
  Loan A/C statement of one year (if applicable)
• 
  Bank account statement of the student (if applicable)

Co-applicant’s documents:

• 
  Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
• 
  Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of passport/ driving license/ Aadhaar card.
• 
  2 passport-size photographs.
• 
  If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.
• 
  Legal documents of the collateral/ property documents.
• 
  Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).

Income proof for salaried co-applicant/guarantor:

• 
  Salary slips for the last 3 months.
• 
  Copy of form 16 of the last 2 years or copy.
• 
  Bank account statement for the last 6 months (Salary account).
• 
  Brief statement of assets & liabilities of parent/ guardian/ other co-borrower.

Income proof for self-employed co-applicant/ guarantor:

• 
  Business address proof.
• 
  Last 2 years IT returns ( If IT Payee).
• 
  TDS certificate (Form 16A, if applicable).
• 
  Certificate of qualification (for C.A./ doctor and other professionals).
• 
  Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
• 
  Bank account statement for the last 6 months.

Documents required for loan against property:

The list of documents required for collateral-based education loans depends on several factors, primarily: property type, purchase history, and location. Broadly, the following documents are required:

 

Common Documents:

• 
  Registered sale deed.
• 
  Approved plan or map of the constructed property.
• 
  Chain documents, evidencing the ownership history of the property for the last 30 years.
• 
  Latest property tax receipt.
• 
  Occupancy proof.

Additional documents if you’re applying for an education loan with a property in the following cities:

 

Mumbai or Pune:

• 
  NA order
• 
  Urban land ceiling order
• 
  NOC from a builder or society
• 
  Share certificate
• 
  Letter of allotment
• 
  Conveyance deed of society
• 
  If CIDCO / MHADA property: NOC and transfer letter

Hyderabad:

• 
  Urban land ceiling certificate
• 
  NA certificate, if not included in the sale deed
• 
  7/12 extract, if not included in the sale deed
• 
  Encumbrance certificate

Bengaluru:

 

• 
  RTC (Record of tenancy certificate)
• 
  Conversion order (from agriculture to residential)
• 
  Khata certificate ( A or B )
• 
  Property tax receipt
• 
  Encumbrance certificate

Applying for an education loan from a public bank can be an important step in funding your education. To ensure a smooth and successful application process, it's crucial to avoid common mistakes that can lead to delays or rejections. Here are few mistakes to avoid when applying for an education loan from public banks:

Insufficient Research:

Applying for a loan without carefully researching the terms and conditions, interest rates, and repayment options of different banks. Research and compare loan offerings from various public banks to choose the one that suits your financial needs and offers favorable terms.

Incomplete Documentation:

Failing to provide all the required documents or submitting incomplete paperwork can lead to delays or rejection. Carefully review the bank's documentation requirements and ensure you submit all necessary documents correctly and in a timely manner.

Inaccurate Information:

Providing incorrect or inconsistent information on your loan application can lead to rejection or complications. Double-check all the information you provide on the application form and supporting documents for accuracy. Be truthful about your financial status and academic history.

Poor Credit History:

Applying for a loan without addressing or improving a poor credit history if you have one.

 

If you have a low credit score, consider taking steps to improve it before applying for a loan. This may involve paying off outstanding debts or seeking a co-signer with a better credit history.

Not Seeking Guidance:

Not seeking guidance from financial advisors or loan counselors when needed. If you are unsure about any aspect of the loan application process, consult with financial experts or counselors who can provide guidance and advice.

 

Applying for a student loan through public banks can be a viable and affordable option for those seeking financial assistance to pursue their higher education dreams. Public banks offer competitive interest rates, flexible repayment options, and government-backed schemes that provide a safety net for borrowers. Moreover, the accessibility and widespread network of public banks make them a convenient choice for students across the country.

 

However, navigating the intricacies of the loan application process can be challenging, and it's crucial to stay informed and make well-informed decisions. This is where GyanDhan comes into play. With our expertise, personalized guidance, and an extensive network of partner banks and lenders, we simplify the application process, help you find the best loan options, and ensure you make the most of your education financing.

 

So, if you are on the lookout for a hassle-free student loan experience with the added advantage of expert assistance, don't hesitate to give GyanDhan a try. We are here to help you achieve your academic goals without any financial stress. To start your education loan journey with us, check your education loan eligibility.