How to Apply for an Education Loan

How to apply for education loan? – Studying in India or abroad is very difficult in financial terms even if one has got the parental and scholarship support. For those without access to either, student loans prove to be the saviour. Easily available and accessible student loans bring about a much-needed parity among those with privilege and those without. With study loans, students get an opportunity to pursue their education without regard to their financial situation. But only a few know how to apply for education loan.

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However, before you apply for study loan, there are many considerations that one must take into account. With so many options to choose from, loan products could be confusing for the layman to simply dive into and decide.

How to Apply for Education Loan: Important Notes

  1. Education loan research: How much to borrow? Study loan repayment sources.
  2. Education loan planning: How many EMIs? Choosing the right banking institution.
  3. Education loan application: Online application or offline application? Government or private channels?
  4. Post-loan-application planning: Education loan subsidy application, student loan renewal etc.

How to Apply for Education Loan: Research Process

The most common mistake that applicants commit is applying for a student loan amount equal to their academic fees, without considering the magnitude of the loan. Students are also often allured by pay later options of banks which enable students to repay the loan after completing education. These mistakes turn out to be very expensive for students in the long run. Thus, they should research well before applying for study loans. Remember ‘how to repay education loan’ is as important a question as ‘how to apply for education loan’.

Steps to research for education loan

  1. Find out the final amount of education loan that you have to apply for:
    1. Check academic fees required (including extra expenses, hostel, lab, books etc.): (a)
    2. Confirm sources of funds that can be arranged without the loan: (b)
    3. Identify the loan amount required (c): c = (a – b)
  2. Visit official websites of registered PSU banks or private banks or NBFCs or education loan experts (consultancy and agencies) to find student loan information
  3. Check student loan terms and conditions for various banks, NBFCs and education loan experts
    1. Student loan limits
    2. Study loan interest rates
    3. Expenses covered
    4. Processing charges
    5. Documentation
  4. Confirm these details by visiting banks or calling customer care numbers of the bank


  • A list of top 10 banks and institutions where student loan can be applied for
  • A financial awareness about the actual loan amount required and available assets to repay the student loan

How to Apply for Education Loan: Planning Process

Knowing the student loan interest rates and study loan requirement is one thing, but planning your finances is another. The planning process includes knowing more details about study loan EMIs and repayment norms. Students who wish to know, ‘how to apply for education loan’ need to know how much can they afford to pay every month and for how long they can choose to pay the same EMI.

Steps to plan an education loan

Education loan estimation

  • Visit the IBA (Indian Banking Association) official website and check out the loan calculators
    • Based on the information gathered from student loan research calculate the following parameters:
      • How much do I pay: Monthly EMI to be paid
      • How much can I afford: Affordable student loan amount
      • How long will it take to repay: The total number of EMIs to be paid
  • Compare the outcomes of calculations for all banks and other institutions
  • Look for other options to fund education

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  1. Bursary and grants offered by foreign institutions
  2. Co-operative fund schemes from private associations


  • A consolidated list of 5 banks and institutions shortlisted based on the financial comparison
  • Exact information about EMIs to be paid and the total cost of loan to be incurred
  • Fact check for other options available for funding education

How to Apply for Education Loan: Online and Offline Application Process

Fun fact: The education loan application process is perhaps the easiest process among all. Gathering the information about banks’ terms and conditions is a more painstaking task, compared to the application part. With the latest interventions of online platforms for student loan application, students now don’t need to visit the bank branch to get their loan sanctioned.

Still, some students choose to apply for education loans by a direct visit to the bank. Most students pursuing education abroad in need of financial assistance find this practice less rewarding. Considering the growing demand for online application, more banking institutions are introducing online features for the benefit of students.  In either case (online/offline application) students are suggested to adhere to some basic principles for best results.

How to apply for education loan: Offline process

  1. After gathering the complete information about the education loan calculation, collect the necessary documents required for application.
  2. Visit the nearest branch of the selected bank.
  3. Ask for a student loan application form and fill all personal, academic and financial details.
  4. Confirm all the terms and conditions from bank official/relationship agent/loan officer.
  5. Complete the loan application process and get a formal student loan agreement.

How to apply for education loan: Online application process

How to apply for education loan through official bank website?

  1. Visit the selected bank’s official website.
  2. Find the education loan product page.
  3. Fill the application-cum-consent form by providing your personal and contact details.
  4. Provide complete academic and financial details on callback received from the bank.
  5. Opt for doorstep service of study loan or visit the bank to complete the loan sanction process.

This application process is basically dependent on the call-back and communication services offered by the respective banking institution. Students have to either go through the comprehensive (shortened) offline process of application or they have to opt for a doorstep service for extra payment.

How to apply for education loan from government vidyalakshmi portal?

  1. Visit the Vidyalakshmi portal’s official website.
  2. Register with your contact details and verify registration from email.
  3. Complete the Common Education Loan Application Form (CELAF).
  4. Upload necessary collateral, academic, financial and identification (KYC) documents.
  5. Select the finalised bank study loan option from the list of schemes available.
  6. Apply for the scheme and confirm your application.
  7. Check loan application status regularly.
  8. Confirm all details as mentioned in CELAF on bank confirmation call.

After this process, the study loan will be delivered to the applicant’s bank account via DBT (direct benefit transfer). Did you know that students can choose to apply for 3 different student loan schemes at one time to maximise their chances of securing the best services?

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Loan application process from education loan experts

The application process for education loan experts is:-

  • Search for the best student loan expert service (Buddy4Study Eduloan, HDFC Credilla, Avanse etc.).
  • Get in touch with education loan expert online or offline.
  • Fill the study loan application form (provide contact details only, for the first instance).
  • Experts will contact the applicant, where applicants will need to provide the required details.
  • Experts will revert with best loan service options.

How to Apply for Education Loan: Post Loan Application Processes

Wait! The application process is not yet over. Among the students asking this riveting question of ‘how to apply for education loan’; most find themselves at the loss of post application information after starting their student loan. How to apply for education loan subsidies? How to apply for tax benefits available against study loan interest payments? The students who proceed with incomplete information about schemes like loan subsidies and tax benefits often fall into the situations like debt-trap

How to apply for education loan: Subsidy application

  • Student loan subsidies are mostly provided by the government but applicants should also check for internal bank schemes for subsidies.
  • There are several subsidy schemes for girl children and students with special abilities.
  • Study loan interest rate subsidy is not automatically enrolled with your loan even if you pass the eligibility criteria.
  • Students need to apply for subsidy separately, apart from student loan application form.
  • Applicants would be required to submit family income proof and caste/category certificates for such subsidies.

Also read: “Education Loan Interest Rate” for more details on study loan interest rate subsidies.

Education Loan: Key Features to Consider for Application

Student loan application process also involves gathering information about various aspects of banking and academic norms. Students with all the information about both these aspects are able to get the maximum benefits of student loans. Applicants and co-applicants can compare student loans based on following parameters to decide better. The answer to ‘how to apply for education loan’ lies in knowing the most and the knowing the latest!

Features and conditions to consider for education loans

  • Study loan amount: minimum limits and upper limits, if sufficient enough to pay for the complete education
  • Student loan interest rates: floating MCLR rates based changes, institution/course based relaxations in interest rates
  • Student loan eligibility: difference between financial eligibility and academic eligibility, requirement of co-applicants, age limits
  • Expenses covered: only tuition fees and living expenses covered or additional study tools and equipment expenses, other academic expenses like building fees, caution money covered as well?
  • Processing charges: collateral inspection charges, deed-writing charges, pre-payment charges, margin payment
  • Study loan discount and subsidies: subsidy for girl students, government schemes, private banking schemes

How to Apply for Education Loan: Cautionary Reminders

Education loan norms keep changing regularly, and that’s the reason why most students have to rely on bank officials to provide them with the best information. With the increase in regulatory policies and transparency in loan schemes, students can now access the basic information required for study loan very easily without the intervention of the bank. Also, remember that study loans are not the only modes to finance education. Financial aid by scholarships for Indian students is also another viable option, perhaps a better one.

Education loan application involves a diligent effort to churn out maximum knowledge about all terms and conditions that banks can propose for any scheme. Applicants who are able to devote enough time and thought to this process are able to pursue education without any financial concerns; compared to others for whom student loan becomes a burden.

Remember before you sign the loan document- read the fine prints carefully and familiarise yourself with all the loan details so that there are no unpleasant surprises later.

If you still have any queries, you may write to us at and we would be happy to help you out. Happy Learning!


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  2. Non-affiliation: The Buddy4Study app is not associated with any government entity in India or elsewhere. When featuring government scholarships, we rely on publicly accessible information from central and state government websites in India.

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