Securing a student loan can be a game-changer in achieving your academic goals. However, before you apply, it’s essential to understand the eligibility criteria for education loans in India. Banks and financial institutions have set conditions to ensure that borrowers can repay the loan responsibly.
In this guide, we break down the detailed eligibility criteria, including student and co-borrower requirements, academic qualifications, income considerations, and tips to improve your loan approval chances in 2025.
🎓 Who is Eligible for a Student Loan in India?
To apply for a student loan, both the student and their co-borrower (usually a parent or guardian) must fulfill certain conditions. Here’s a breakdown:
✅ 1. Student Eligibility
Most banks require the student to:
- Be a citizen of India
- Have secured admission to a recognized course
- Apply for a graduate, postgraduate, diploma, or professional course
- Be between 16 to 35 years of age (some banks extend up to 40)
The admission should be into:
- Indian institutions approved by UGC/AICTE/AIU/Government
- Foreign institutions recognized by that country’s accrediting bodies
Full admission criteria for Indian and foreign universities:
👉 https://pwwpw.in/eligibility-criteria-for-student-loans-in-india
✅ 2. Academic Performance Requirements
While there’s no fixed cutoff, banks usually consider:
- Consistent academic records
- Minimum marks (often 60% or above in 10+2 or graduation)
- Entrance exam ranks (like JEE, NEET, CAT, GRE, etc.)
- Course reputation (IITs, IIMs, AIIMS, etc. are prioritized)
High-performing students may get loans with lower interest rates and even without collateral.
✅ 3. Eligible Courses
Loans are available for:
In India:
- Graduation, post-graduation, diploma, and professional courses
- Engineering, Medicine, Management, Law, CA, CS, etc.
Abroad:
- Full-time courses at approved international institutions
- STEM, MBA, MS, MBBS, and PhD programs
For study abroad-specific loan eligibility:
👉 https://pwwpw.in/education-loans-for-studying-abroad
✅ 4. Co-applicant Eligibility
Banks require a co-borrower (co-applicant), typically:
- Parent, legal guardian, or spouse (for married applicants)
- Must have a steady source of income
- Must be an Indian citizen and provide income proofs
If the loan is unsecured, the co-applicant’s credit score plays a significant role.
Explore documentation checklist:
👉 https://pwwpw.in/documents-required-for-student-loans-in-india
✅ 5. Financial Eligibility
Some financial criteria that matter:
- Loan amount: Up to ₹7.5L (usually without collateral); above that, security might be needed
- Income proof of co-borrower (salary slips, ITRs)
- Credit history: A good CIBIL score improves approval chances
- Banks may ask for third-party guarantors for large amounts
Need a no-collateral option?
👉 https://pwwpw.in/how-to-get-a-student-loan-without-collateral-in-india
🧾 Common Eligibility Guidelines by Major Banks (2025)
| Bank | Age | Course Type | Min. Academic Req. |
|---|---|---|---|
| SBI | 18–35 | Indian & Overseas | Admission to recognized course |
| Bank of Baroda | 16–35 | India & Abroad | Min. 60% (preferred) |
| HDFC Credila | No limit | International only | GRE/GMAT/IELTS scores |
| Axis Bank | 18–35 | Higher Education | Based on academic merit |
| ICICI Bank | 18+ | India & Abroad | Entrance exam score or merit |
Check exact eligibility and rates:
👉 https://pwwpw.in/top-banks-offering-education-loans-in-india-for-2025
📋 Additional Requirements You Should Know
✅ Moratorium Period
The moratorium includes course duration + 6 to 12 months, and differs from bank to bank. You won’t have to pay EMIs during this period, although interest may accrue.
More on repayment grace and options:
👉 https://pwwpw.in/how-to-repay-your-student-loan-in-india
✅ Collateral Requirement
Collateral is usually required for loans above ₹7.5L, and can be:
- Residential property
- Fixed deposits
- Insurance policies
Some banks offer 100% financing without collateral for premier institutions.
More:
👉 https://pwwpw.in/how-to-get-a-student-loan-without-collateral-in-india
🚫 Who Might Be Denied a Loan?
Loan applications may be rejected due to:
- Poor credit history of co-borrower
- Admission to unrecognized institutions
- Low academic performance
- Incomplete documents or false information
- Unclear course outcome or job prospects
Avoid rejections:
👉 https://pwwpw.in/common-mistakes-to-avoid-when-applying-for-a-student-loan-in-india
💡 Tips to Improve Your Approval Chances
- Maintain a strong academic record
- Apply to top-ranked and accredited institutions
- Submit complete and verified documents
- Choose a stable-income co-borrower
- Consider applying jointly with collateral if loan >₹7.5L
📌 Final Thoughts
Getting an education loan approved is easier when you clearly meet the eligibility criteria. Before applying, do your homework on your course, co-borrower’s credit profile, required documents, and your repayment plan.
If you’re eligible and prepared, banks are more than willing to invest in your future.
Learn everything in one place:
👉 https://pwwpw.in/eligibility-criteria-for-student-loans-in-india
