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Education Loan Eligibility: Check Yours Today

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Created on
January 18, 2023


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If you’re looking to get a student loan, you need to check your education loan eligibility first. While the  criteria is easy to meet, it’s still important to know where you stand before you apply. 

Who is Eligible for Student Loans in India?

While the education loan eligibility checklist for each lender will be different, here’s a generalised overview of the criteria commonly listed by lenders:

  • An applicant who is a citizen of India.
  • An applicant who is 18-35 years of age when applying for the loan.
  • An applicant who has already secured admission to the institution - in India or abroad.
  • An applicant who is applying for a graduate or postgraduate degree.
  • An applicant whose co-signer has a steady source of income and meets the set minimum income requirements. 
  • An applicant who has a good academic record. 

How do Lenders Gauge Education Loan Eligibility?

Lenders generally use the following parameters to gauge your education loan eligibility:

1. Academic Record - Your past academic record will be the foremost factor under review before a lender grants you a student loan. This includes your past merits, achievements, awards, marks, etc. 

2. Selected Course -  Your lender will also review the course you have picked. It does so to check whether it's accredited to a good institution and whether the course can produce lucrative employment prospects in the future that will help you pay back the loan amount. 

3. Shortlisted Institution - Similarly, your lender will also check if the institution offering the course is one of repute. Lenders usually have a list of approved institutions and a corresponding list of vetoed institutions. 

4. Co-Applicant’s Income - As a student applying for a loan, you will have to list co-signers or co-applicants who will vouch for the repayment of the loan on your behalf. Thus, the lender has to determine their eligibility to repay the loan in case they can’t. This is why their income and credit history come under the scanner. 

5. Collateral Value - Student loans above 7.5 Lakhs are secured loans issued against collateral. The lender will review the type of collateral deposited and the value of the collateral to assess your eligibility for the loan. 

Are All Courses and Institutions Covered by Student Loans?

While student loans cover a broad spectrum of courses and institutions, these lists are exhaustive in nature. Lenders have a specific list in place to gauge education loan eligibility. 

How to Improve my Eligibility for Student Loans?

There are several factors that can impact your education loan eligibility, but there are also steps you can take to increase your chances of approval. Read more in detail below:

1. Having a Stellar Academic Record - Students with top-notch academic records find it easier to secure educational loans than those with poor records. Thus, if you’re preparing to apply for a student loan, you should work to build your academic record to enjoy easy approvals. 

2. Picking a Co-Signer with a Good Credit Score - Every loan has an income component. Since you are a student applying for the loan, this component gets passed on to your co-signer. As mentioned earlier, your co-signer has to guarantee the repayment of the loan. Picking a co-signer with a good credit history assures the lender that the loan will be repaid on time, improving your eligibility for the student loan. 

3. Choosing a Reputed College/University - If you get selected to a reputed university, your chances of getting approval improve. You can also pick an institution from the lender’s list of pre-approved ones to instantly boost your eligibility. 

4. Selecting a Course with Good Prospects -  A course in which you’re confident of finding employment and making returns should be your go-to. Generally, banks have course/college preferences themselves, do a bit of digging on these to get an idea of what your bank prefers.


It’s important to note that taking a loan comes with a series of consequences that you should be aware of before going ahead with the loan process which includes your education loan eligibility. Look into interest rates and duration closely, and ensure that you cover your bases for worst-case scenarios before taking a student loan. 

Frequently Asked Questions

1. What are the qualifications for a student loan?

Student loans in India are open to those of 18 years or above, applying to a UG, PG or diploma course at a recognised university/college in India or abroad. The applicant should also have a co-signer with a stable income and collateral for loans above Rs 7.5 Lakhs. Lastly, the applicant should be able to furnish the necessary documents to prove her/his qualifications. 

2. What disqualifies you from getting a student loan?

You may be disqualified for picking an educational institution that’s listed on the lender’s veto list or one that’s not well-reputed or recognised. You may also be disqualified if the lender deems that the selected course doesn’t show promise for future revenue flows. Another significant reason might be the poor credit score of your co-signer. 

3. How much must I earn to fall under education loan eligibility?

Student loans take the co-signer’s income into consideration. While the minimum income limit may vary from one lender to the next, generally, it is placed at 30,000 per month. Again, lenders also consider loan applications with co-signer incomes that don’t meet this minimum threshold.

4. How much salary is required for student loan?

The salary required for a student loan depends on various factors such as the loan amount, repayment terms, and the lender's criteria. Generally, lenders may consider a minimum salary of around INR 20,000 to INR 25,000 per month as a basic requirement for granting a student loan in India. However, specific requirements may vary among different lenders, and it's advisable to inquire with the desired lender for accurate information based on your circumstances.

5. Which students are eligible for an education loan in India?

In India, students who are Indian citizens and have secured admission into recognized courses in India or abroad can be eligible for education loans. Eligibility criteria may vary among lenders but typically include factors such as academic performance, course selection, and the financial capability of the student or co-applicant.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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