How to Get Education Loan After 12th? – Eligibility, Documents Required for Loan

How to Get Education Loan After 12th?: Leading Indian banks are offering education loans to help students to achieve their academic goals. Students can opt for an education loan after completing their 12th grade to get a quality education from the top universities to decide their career paths.

Here we are giving the What is Education Loan, benefits of education loans, eligibility, required documents, and top banks offering loans. You can even check the steps to apply for student loans for different courses.

Education Loan After 12th

Basically, an education loan is the financial support provided by banks and NBFCs to students to meet their expenses related to education. These loans can be offered to students after completing 12th, and graduation who are willing to do a professional course.

The loan covers the expenses of the tuition fee in the institution, books, miscellaneous, cost of living, travelling and others. This kind of loan can be taken as funding, reward or scholarship. The students or the borrowers have to repay the loan amount along with the interest after the end of their course.

Unsecured Education Loan After 12th Class

Students can apply for an education loan to study in India or abroad after completing 12th class. You can get a maximum of 2 crores unsecured loan with an interest rate of 10.5 to 12.5%.

Parameter	Details
Loan Limit	2 Crores or Higher amount can be tried
Expenses covered	Study Costs Admission fee Tuition fee Expenses for study tours Examination fee Expenses for books, or laptop Living expenses Food costs Accommodation or hostel cost Caution fee Other Expenses Health insurance expenses Expenses for travel Miscellaneous expenses
Interest rate	10.5% to 12.5%
Moratorium Period	Course duration plus 6 months or 12 months, depending on the lender you are going through.
Repayment Duration	10 to 12 years
Repayment policies	Full simple interest is charged in most cases which should be paid in the moratorium period itself
Co-applicant salary	Generally, the co-applicant salary should be between 4.5 to 6 LPA

Secured Education Load After 12th

Students who want to have an education loan with lower interest rates can choose a secured education loan for their graduation or diploma courses.

Parameter	Details
Loan Limit	Up to 1.5 Cr, A higher amount can be tried
Expenses covered	Costs for study University fee Examination fee Admission fee Fee or lab or library Cost of buying books or laptop Living expenses Food expenses Hostel or accommodation cost Other Expenses Insurance Travel expenses Other Miscellaneous expenses
Interest rate	9.2% to 10.02%
Moratorium Period	Course period plus 1-year
Repayment Duration	Up to 15 years
Repayment policies	Normally simple interest is charged for the moratorium period, which can be paid after the moratorium period
Types of Collateral	Immovable Flat House Non-agricultural land/empty plot Liquid security Govt bonds FD LIC policy
Value of collateral (In case of a collateralized loan)	2 times the value of collateral, if the student chooses a renowned university

Eligibility Criteria for Education Loan

Students have to fulfil the following mentioned eligibility to avail of the education loan.

• He/she should be an Indian.
• Students must have completed their 10+2 or 12th grade with passing marks.
• They should have obtained secured admission from an approved university/institution for a degree or diploma course.

Needed Documents to Apply For Education Loan

Here given are the list of documents needed for availing the education loan. It is mandatory for all students to carry these certificates to the bank.

• Mark sheets of 10th, 12th or any entrance exam taken for the course.
• KYC documents.
• Admission letter from the university/college.
• Fee structure of the course from the college.
• Co-applicant KYC and income proof documents.

Top Lender Giving Education Loan After 12th Class

Education loans are offered by banks to help students meet their academic expenses. It starts with an interest rate of 6.85% per annum and a repayment tenure of up to 15 years. Here is the list of banks that offered education loan.

• Axis Bank
• HDFC
• Kotak Mahindra Bank
• Federal Bank
• Bank of India
• Bank of Baroda
• Union Bank of India
• Private Bank
• Tata Capital
• State Bank of India
• Punjab National Bank

Education Loan for Different Courses After XII

An education loan can be given to eligible students who have taken admitted into diploma or degree courses from authorised universities/ colleges. Students can get education loans from these courses at lower interest rates.

Education Loan for Engineering

Engineering is the most preferred course in India. Getting quality education in the engineering field needs a lot of finances and it is not easy for all students. Hence students are taking education loans for engineering from public and private lenders.

Education Loan for B.Pharmacy

B Pharmacy is a growing industry and the professionals have high demand. So banks provide special education loans for B Pharmacy students at a lower rate of interest and other special benefits.

Education Loan for Diploma

Diploma-obtaining students can get education loan in a short time. Bank provides loan for diploma in addition to other high-level courses.

Education Loan for BBA

BBA is a 3-year program that is pursued after 12th class. If you have got admission to a top university, then the bank will be more interested to offer you loan at the lower rate of interest. The loan will be offered at a lower interest rate and other special conditions for BBA.

Education Loan for BDS

BDS (Bachelor of Dental Surgery) is a potential course for medical students. Students can get an education loan of up to 2 crores for BDS.

How to Get Education Loan After 12th? – Application Process

Following are the simple steps to apply for an education loan after completing the 12th class via online or offline.

Offline Process

• Visit the bank branch.
• Look at the education loan procedure of the bank by asking the manager.
• Select the education loan scheme, and then you are given a list that contains the which documents required for education loan.
• Submit the documents at the bank.
• Your documents are manually checked and verified.
• After that loan will be approved.

Online Process

• Go to the official website of the bank where you want to take an education loan.
• Click on the Education Loans section and select Apply button.
• Fill out the application form with the details.
• Click on Proceed button and also upload the documents.
• Wait for the bank to verify your documents.
• The bank will get back to you and keep you notified.

FAQs on How to Get Education Loan After 12th

1. Can I apply for an education loan after 12th?

Yes, students can apply for education loan after 12th to do professional or technical courses in authorized organisations.

2. Can I get a 100% education loan?

Yes, you can get a 100% education loan in some cases only.

3. Who is eligible for an education loan?

Any resident Indian who has finished 12th standard or graduated with qualifying marks and has taken admission for higher studies are eligible for an education loan.

4. What expenses are covered under an education loan?

The list of expenses covered under an education loan are tuition fees, hostel fees, travel expenses for foreign students, exam/library fees, and other miscellaneous expenses.

Final Words

Students have got an idea of How to Get an Education Loan after 12th standard. The application process can be similar to How to Apply for Education Loan for Abroad Studies. Stay tuned to our site to know more related posts like How to Get Education Loan from Government, How to Repay Education Loan, and so on.