Education Loan Eligibility
Who qualifies, which courses are eligible, co-borrower requirements and how the loan amount is decided.
Updated 27 September 2026 · 8 lenders trackedWhat you need to know
Education loan eligibility is built around your admission: banks finance the cost of a recognised course once you have secured admission, and a parent or guardian joins as co-borrower. Unlike other loans, the student’s own income is not required — but the co-borrower’s credit history and, for bigger loans, income and collateral matter.
Student eligibility
- Indian national (NRI/OCI rules vary by lender)
- Secured admission to a recognised institution, usually through an entrance test or merit-based selection
- Passed the qualifying exam (Class 12 or graduation as relevant)
- No fixed age limit under the IBA scheme; some private lenders set one
Eligible courses
| Studying in | Courses usually covered |
|---|---|
| India | Graduation, postgraduation and professional courses (engineering, medicine, law, management, agriculture, etc.); CA/CMA/CFA; courses at IIMs, IITs, IISc, NIFT and similar; DGCA-approved pilot training; nursing and teacher training at recognised institutions |
| Abroad | Job-oriented professional or technical graduate courses, postgraduate courses (MS, MBA, MCA, etc.) and recognised professional qualifications offered by reputed universities |
Co-borrower requirements
- Parent or guardian is compulsory; spouse or parents-in-law for married students
- Clean repayment record — defaults or high utilisation on the co-borrower’s credit report are the most common reason for rejection
- Income proof for larger or unsecured loans
- For loans above ₹7.5 lakh (non-premier), collateral owned by the co-borrower or a close relative
How the loan amount is decided
- Cost of studyFees, hostel, books, equipment and (abroad) travel and living costs as per the institute’s estimate.
- Minus margin5% (India) / 15% (abroad) above ₹4 lakh; scholarships count towards it.
- Scheme limitPremier lists and PM-Vidyalaxmi institutes get higher collateral-free limits.
- Security & repayment capacityAbove ₹7.5 lakh, collateral value and co-borrower income cap the amount.
Frequently asked questions
Do I need a job or income to get an education loan?
No. The student’s future earnings are the basis of repayment; the co-borrower provides comfort to the bank.
Can I get a loan for a part-time or online course?
Most bank schemes cover full-time recognised courses. Some banks finance executive or evening programmes at approved institutes; skill loans cover short certified courses.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.