Student Loan FAQs

For what type of study programs can educational or student loans can be availed?

Educational loans can be taken to pursue almost all types of courses namely Secondary School, undergraduate/Post-graduate/specialized courses and Professional courses such as engineering/medical/law and other courses such as computer courses, fashion designing, commercial pilot training, etc.

What are the eligibility conditions for getting a student loan?

The general eligibility condition is that the student must have qualified for, or have a confirmed admission in any of the recognized educational institution. Also the students must be in the age group specified. Other criteria are good academic record (first class throughout, with no gaps or breaks in education, etc.), and a regular source of income for the parents. The recognition granted to the institution the student has opted for is also an important criterion.

What are the costs covered in educational loans?

Educational loans generally cover the costs of tuition fees, hostel fees, mess fee and examination fees. Some banks offer finance for the cost of books, equipments and other instruments required by the student for the study-program as well. For studies abroad, banks provide one-way airfare.

Does one needs to provide any security for availing student or educational loan?

The security requirement varies from bank to bank. It generally depends on the loan amount.

What is the maximum amount that can be availed under educational loans?

This also varies from bank to bank and it depends on the study program for which the loan is sought and the institution chosen. Generally, loan amount for professional courses would be higher than normal courses. The loan amount can also depend on the monthly/yearly income of their parents or guardians. The loan amount would depend on the discretion of the bank.