Getting a study loan is one of the most helpful ways for students to continue their education without worrying about money. Today, higher education has become expensive. From tuition fees to hostel charges, books, travel, and many other expenses, students and parents often feel a heavy burden.
That’s why many students search for “how to get study loans” so they can study freely and focus on their career.
This informative blog will help you understand everything about getting a study loan in easy language, including
- eligibility,
- loan process,
- government schemes,
- bank loan options,
- documents needed,
- examples with calculations, and
- tips to get quick approval.
Let’s begin.
What Is a Study Loan?
A study loan (or education loan) is a special loan that helps students pay for their educational expenses. These expenses can include:
- Tuition fees
- Hostel or accommodation charges
- Books and study materials
- Exam fees
- Laptop and equipment
- Travel expenses (for studying abroad)
- Insurance and other academic costs
The biggest benefit of a study loan is that you don’t need to repay the amount immediately. In most cases, repayment starts after the course ends, giving students time to complete studies and find a job.
Types of Study Loans in India
There are mainly two types:
1. Government-Backed Study Loans
These loans offer:
- Lower interest rates
- Interest subsidy (government pays the interest during the study period)
- No collateral for eligible students
- Easy approval for low-income families
2. Bank or Private Institution Loans
These loans offer:
- Higher loan amounts
- Faster approval
- Loans for a wide range of courses
- Options for studying abroad
Both options are useful, depending on your situation.
Who Can Apply for a Study Loan?
You can apply for a study loan if:
- You are an Indian citizen
- You have secured admission in a recognized school, college, university, or institute
- You have completed required academic qualifications
- You can provide necessary documents (ID, address, income proof, etc.)
- Your parents or guardian can act as co-applicant
Even students going to foreign universities can apply for a study loan.
Expenses Covered Under a Study Loan
Most study loans cover:
| Expense Type | Covered or Not? |
| Tuition fees | ✔ Covered |
| Hostel/PG rent | ✔ Covered |
| Books & materials | ✔ Covered |
| Laptop or equipment | ✔ Covered |
| Examination fees | ✔ Covered |
| Travel for abroad studies | ✔ Covered |
| Mess/food cost | ✔ Partially covered |
| Uniform or tools | ✔ Covered |
| Recreational expenses | ✘ Not covered |
Documents Required to Get a Study Loan
Here are the common documents required:
Student Documents
- Aadhaar card
- PAN card
- Passport (for abroad studies)
- 10th, 12th & graduation mark sheets
- Admission letter from the institute
- Passport-size photos
Parent/Guardian Documents
- Aadhaar & PAN card
- Salary slips (or Income Certificate)
- Bank statements (last 6 months)
- ITR (if applicable)
- Address proof
Collateral Documents (only if required)
- Property papers
- FD certificate
- LIC policy papers
Government Schemes That Help Students Get Study Loans
India offers several schemes that make study loans easier and cheaper for students, especially from lower income groups.
1. Central Interest Subsidy Scheme (CISS)
This scheme is for students whose family income is up to ₹4.5 lakh per year.
Benefits
- Government pays the entire interest during the moratorium period
(Moratorium = Course duration + 1 year) - Students repay only the principal amount later
Example with Calculation
Suppose you take a loan of ₹4,00,000 at 10% interest for a 4-year course.
Without subsidy:
Interest each year = ₹4,00,000 × 10% = ₹40,000
For 4 years = ₹1,60,000 interest
With subsidy:
Interest for 4 years = ₹0 (government pays)
This means you save ₹1,60,000.
2. Collateral-Free Study Loans for Eligible Students
Many government-supported schemes allow students to get loans without property documents or a guarantor.
Benefits
- Easy approval
- No need for property documents
- Good for low-income families
3. Merit-Based Study Loan Support
Students who get admission to top institutions can get special loan benefits like:
- No collateral
- Lower interest rate
- Faster approval
Bank Study Loans: A Popular Option
When students don’t qualify for government schemes, they can get loans from banks or financial institutions. Banks provide loans for:
- School education
- Undergraduate courses
- Professional courses
- Technical courses
- Study abroad programs
Banks offer loan amounts from ₹50,000 to ₹1 crore or more, depending on the course and destination.
Eligibility Criteria for Bank Study Loans
You must meet the following:
- Admission confirmed in a recognized institution
- Good academic record
- Co-applicant (parent/guardian) with stable income
- Collateral for higher loan amounts (if required)
Interest Rates and Repayment Structure
Interest rates are usually between 8% to 14%, depending on:
- Course type
- Institution
- Loan amount
- Co-applicant income
- Secured or unsecured loan
Repayment usually starts after:
- Course duration + 6 to 12 months
This break is known as the moratorium period.
Example: Study Loan Calculation (Step-by-Step)
Let’s assume:
- Loan amount: ₹6,00,000
- Interest rate: 10% per year
- Repayment tenure: 10 years
- Course duration: 3 years
1. Interest that builds during the study period
Moratorium period = 3 years (course) + 1 year = 4 years
Interest each year = 6,00,000 × 10% = ₹60,000
Interest for 4 years = 60,000 × 4 = ₹2,40,000
Loan amount at repayment start = ₹6,00,000 + ₹2,40,000
= ₹8,40,000
2. EMI calculation (for 10-year repayment)
Approx EMI for ₹8,40,000 at 10% = ₹11,100/month
3. Total repayment in 10 years
₹11,100 × 120 months = ₹13,32,000
Total interest paid
₹13,32,000 – ₹6,00,000 principal = ₹7,32,000
This example helps students understand the real cost.
How to A Get Study Loan in India: Step-by-Step Guide
Step 1: Choose Your Course and Institution
Make sure the institute is recognized, as this increases approval chances.
Step 2: Estimate Total Expenses
Calculate tuition fees + hostel + books + travel + other charges.
Step 3: Check Eligibility (Income, collateral, etc.)
Step 4: Collect All Required Documents
Step 5: Submit Loan Application
You can apply:
- Online
- At a bank branch
- Through education loan portals
Step 6: Wait for Approval
Banks review:
- Academic performance
- Co-applicant’s income
- Course value
- Collateral (if required)
Step 7: Sign the Loan Agreement
Step 8: Loan Disbursement
Loan amount is paid directly to the institution or student, depending on the rules.
Tips to Get a Study Loan Easily
Here are simple but powerful tips:
1. Choose a recognized institution
Banks approve loans faster for reputed institutes.
2. Maintain a good academic record
High scores increase trust and reduce interest rate.
3. Show a stable source of income (co-applicant)
Banks want to ensure that EMIs can be repaid.
4. Prepare for verification calls
Give correct information only.
5. Apply early, not last minute
Last-minute applications create stress and delays.
6. Check all charges
Processing fee, GST, late payment penalty, etc.
7. Compare different lenders
Choose the one offering:
- Lower interest
- Longer repayment
- No collateral (if possible)
- Quick approval
Common Mistakes Students Make
Avoid these:
❌ Applying without checking eligibility
❌ Giving incomplete documents
❌ Ignoring terms of repayment
❌ Not calculating EMIs
❌ Borrowing more than required
Also Read: Federal Student Loans: A Complete Guide
Conclusion
Getting a study loan in India has become easier today because of supportive government schemes and banking options. Whether you want to study in India or abroad, you can find a suitable loan based on your needs.
With simple documents, a stable co-applicant, and the right approach, you can easily get a study loan and continue your education without financial stress.
Just remember to compare options, calculate your EMIs, understand the terms, and borrow responsibly.