After completing Class 12, many students dream of studying in India or abroad. But higher education can be expensive. Whether it’s engineering, medical, management, or any professional course — college fees, hostel charges, and other expenses can be high.
Don’t worry! Education loans are available to support your dreams.
In this blog, you will learn:
- What is an education loan?
- Who can apply for it?
- Documents required
- Step-by-step process: how to get education loan after 12th
- Interest rates and repayment
- Example with loan calculation
- Tips to get loan approval easily
Let’s get started!
📘 What is an Education Loan?
An education loan is a type of loan provided by banks or NBFCs to help students pay for their higher studies. The loan amount can be used for:
- Tuition fees
- Hostel or accommodation
- Books and study materials
- Travel (for abroad studies)
- Exam/lab/library fees
You can apply for a loan for studies in India or abroad, depending on your admission and course.
✅ Who Can Apply for Education Loan After 12th?
To apply, you must meet these conditions:
| Criteria | Requirement |
| Age | 18 to 35 years |
| Qualification | Passed 12th (10+2) |
| Admission | Confirmed in a recognized college/university |
| Course Type | Full-time diploma, UG, or professional course |
| Co-applicant | Required (usually parents or guardians) |
| Income Proof | Required from co-applicant |
🔍 Note: Co-applicant is important because most students have no income after 12th. The bank checks your family’s ability to repay.
📄 Documents Required
Here is a list of commonly required documents:
For Student
- 10th and 12th mark sheets
- Entrance exam scorecard (if any)
- Admission offer letter
- Course fee structure
- Passport-size photographs
- Identity & address proof (Aadhaar, PAN, Passport)
For Co-applicant (Parent/Guardian)
- Income proof (Salary slips, ITR, Form 16)
- Bank account statement (last 6 months)
- ID & address proof
- Proof of relationship with the student
If Collateral is Required
- Property documents (for secured loans)
- Valuation report
- Title deed
🛠️ Types of Education Loans
| Loan Type | Description | Max Loan Amount |
| Unsecured Loan | No collateral required; based on income & credit | Up to ₹75 lakhs |
| Secured Loan | Property or FD as security | Up to ₹2 crores |
Banks like Tata Capital, HDFC Credila, and SBI offer both types. The loan amount depends on course fees, destination (India/abroad), and co-applicant income.
🪜 Step-by-Step Process to Apply: How to Get Education Loan After 12th
✅ Step 1: Research and Choose the Right Loan Provider
There are many banks and NBFCs (non-banking financial companies) that offer education loans. You must compare them based on:
- Interest rate (e.g., 10.5%–13%)
- Maximum loan amount
- Collateral requirement (secured or unsecured)
- Processing time
- Moratorium (repayment holiday)
- Extra charges like processing fees
📌 Example:
If you’re going for a ₹7 lakh course in India, Tata Capital or SBI Scholar Loan could be good choices. But if you plan to study abroad, Credila (HDFC) offers pre-visa loan approval.
✅ Step 2: Check Your Eligibility
Before applying, ensure you are eligible. Common requirements include:
- Indian citizen aged 18–35
- Passed Class 12 with minimum marks (50% or above)
- Admission confirmation from a recognized institute (India or abroad)
- A co-applicant (parent/guardian) with stable income
📌 Tip:
Eligibility criteria vary between lenders. Always read their specific conditions.
✅ Step 3: Collect All Required Documents
Keep both student and co-applicant documents ready. This will help avoid delays.
For the Student:
- 10th and 12th mark sheets
- Admission letter from college/university
- Fee structure (with hostel, books, etc.)
- Entrance test score (like NEET, JEE, IELTS, etc.)
- ID proof – Aadhaar card, PAN card, passport
- Address proof – utility bill, ration card, etc.
For Co-applicant (parent or guardian):
- Income proof – salary slips or IT returns (ITR)
- Bank statements (last 6 months)
- ID and address proof
For Collateral (only if applying for secured loan):
- Property ownership documents
- Property valuation report
- Title deed (legal ownership proof)
📌 Tip:
Scan and save all documents in PDF format if applying online.
✅ Step 4: Fill the Education Loan Application Form
You can apply in two ways:
🔹 A. Online Method
- Visit the official website of the lender (e.g., tatacapital.com, credila.com, sbi.co.in)
- Click on “Apply for Education Loan”
- Fill personal, academic, and course details
- Upload scanned documents
- Submit the form
🔹 B. Offline Method
- Visit your nearest bank branch
- Ask for the education loan form
- Fill all sections carefully
- Attach photocopies of documents
- Submit the form to the loan officer
📌 Tip:
Be honest in your form. Do not hide information like existing loans or poor academic records.
✅ Step 5: Attend Interview or Phone Verification (If Required)
Some banks like SBI or Canara Bank may conduct a small interview or phone call to:
- Verify your course details
- Understand your repayment plan
- Check your family’s financial background
📌 Don’t worry!
They just want to confirm you’re serious about your studies and repayment.
✅ Step 6: Get the Loan Sanction Letter
If your loan is approved, the bank will issue a Loan Sanction Letter. It contains:
- Approved loan amount
- Interest rate
- Moratorium details
- Repayment period
- Conditions (like submission of original marksheet or bond)
📌 Important:
You will need the sanction letter for college admission or student visa (for abroad studies).
✅ Step 7: Loan Disbursement
Once the course starts, the lender disburses the amount. The money is:
- Sent directly to the college (for tuition fees)
- Transferred to the student’s or parent’s bank account (for books, travel, etc.)
📌 Note:
Funds may be disbursed in installments (semester-wise or annually).
🧾 Quick Summary: 7 Steps to Apply for an Education Loan
| Step | Action | Details |
| 1 | Choose the right lender | Compare interest rates and loan types |
| 2 | Check eligibility | Age, course, co-applicant, admission proof |
| 3 | Collect documents | Marksheets, ID, income proof, admission letter |
| 4 | Fill application | Online or offline, enter all course details |
| 5 | Attend interview (if needed) | For loan approval verification |
| 6 | Receive sanction letter | Loan approved officially by bank/NBFC |
| 7 | Disbursement of funds | Sent to college or student account in installments |
💰 Interest Rate and Repayment
| Feature | Details |
| Interest Rate | 10% to 13% (varies by lender) |
| Repayment Tenure | 10–15 years |
| Moratorium Period | Course duration + 6–12 months |
| Repayment Starts | After moratorium |
| Tax Benefit | Under Section 80E (Interest only) |
🔢 Loan Repayment Example
Let’s say:
- Loan Amount = ₹10,00,000
- Interest Rate = 11% per annum
- Course Duration = 4 years
- Moratorium = 1 year after course
- Repayment Tenure = 10 years
📌 You don’t pay EMIs during the course & moratorium. But interest accumulates.
📈 Interest during Moratorium
Interest = Principal × Rate × Time
= 10,00,000 × 11% × 5 = ₹5,50,000 approx.
So, total repayable = ₹10,00,000 + ₹5,50,000 = ₹15,50,000
💸 EMI after 5 years
Using EMI formula:
EMI = ₹15,50,000 / 120 months ≈ ₹16,000/month (approx.)
Note: Actual EMI depends on the bank and method of calculation (simple/compound interest).
📚 Top Lenders Offering Loans After 12th
| Bank/NBFC | Max Loan Amount | Interest Rate | Special Features |
| Tata Capital | Up to ₹75L (unsecured), ₹2Cr (secured) | 10%–12.5% | Quick online process, flexible repayment |
| HDFC Credila | Up to ₹2Cr | 10.5%–13% | Fast sanction, abroad loan expert |
| SBI Scholar Loan | Up to ₹30L | 8.15%–10% | Govt schemes, lower rate for premier colleges |
| Axis Bank | Up to ₹40L | 10%–13% | Pre-visa disbursement (for abroad) |
| Bank of Baroda | Up to ₹80L | 9.85%–11.15% | No margin for loans under ₹4L |
🎯 Tips to Get Loan Easily After 12th
- Score well in Class 12 – Good marks improve chances.
- Secure admission in a reputed college – Banks prefer top colleges.
- Choose a job-oriented course – Like engineering, medical, management.
- Have a strong co-applicant – With regular income & good credit score.
- Keep documents ready – Incomplete forms cause delay.
- Apply early – Start 6–7 months before your course starts.
❓ FAQs – Education Loan After 12th
Q1: Can I get a loan before admission confirmation?
A: You can start the process early, but final sanction requires the admission letter.
Q2: What if my parents have low income?
A: You can add a secondary co-applicant, or apply for a secured loan with collateral.
Q3: Can I apply for an education loan to study abroad after 12th?
A: Yes, if you have admission in a recognized foreign university and a valid visa.
Q4: Is it compulsory to repay during the course?
A: No, you get a moratorium (holiday period). You can start paying EMIs after course completion.
📝 Conclusion
Getting an education loan after 12th is a smart way to finance your dreams without burdening your family. All you need is:
- Good academic record
- Valid admission
- Supportive co-applicant
- Right lender with best interest rates
With proper planning and documents, you can easily get the funds for your college journey. Start early, compare lenders, and take expert help if needed.