Have you ever wondered what a student loan is and whether or not it is worth it to avail of this facility? If you are a student aspiring to pursue higher education in India or abroad, you have likely been curious about a student loan and how to apply for student loans when the time comes. Alternatively, if you have children of college-going age, this may be something you need to be aware of. 

Let’s get into the details of a student loan and find out everything you need to know about this credit facility. 

What is a Student Loan, and How to Apply for this Facility? 

A student loan, also known as an education loan, is simply a kind of borrowing that can be used to pay for eligible educational courses. Typically, these loans cover various costs like tuition and other ancillary costs like accommodation expenses, exam fees and more. The primary borrower in a student loan is the student, and the parent, spouse, sibling or any other creditworthy adult can be the cosigner.

The exact process to apply for a student loan in India may vary from one lender to another. However, here’s how you can apply for student loans. 

1. Compare loan offers from different lenders and choose the most favourable options.
2. Check which ones you qualify for and identify the education loan you wish to apply for.
3. Visit the bank’s website and head to the student loan section. 
4. Fill in the application form online and attach the supporting documents required.
5. Submit your documents and wait for the lender’s approval.

The Different Types of Student Loans Available in India

Depending on your requirements, you can avail of different types of education loans in India. Some of the commonly available types of loans include the following: 

• Domestic education loans for pursuing educational courses in India
• International student loans for pursuing educational courses abroad
• Loans for higher education, like graduate and postgraduate programs
• Loans for professional education 
• Secured loans, which require collateral in the form of deposits, property or securities
• Unsecured loans that do not require any collateral

No matter the type of loan, repayments for these loans generally come with a moratorium period. Banks typically require borrowers to start repaying these loans either 12 months after the course completion or 6 months after becoming employed, whichever is earlier. 

Complement Your Student Loans with the Best Personal Loans

Now that you know what a student loan is and how to apply for student loans, you can check various offers online and proceed. However, if you need to borrow more than the maximum limit you are eligible for, you can always rely on a personal loan for the additional funds. Fi Money can help you with instant loans that arrive directly in your account. 

These are pre-approved personal loans made available to select users with good credit scores. On Fi, this process is 100% paperless, and the loans are provided at competitive interest rates — where each user remains in control with complete visibility of all details. Plus, you can avoid EMI late fees by setting up automatic in-app payments. Our licensed partner bank assigns an eligible loan amount to each user (up to ₹5 lakhs).

Frequently Asked Questions (FAQs)

How much education loan can a student get?

The amount of student loan a student can get in India varies from one lender to another. Before you apply for an education loan, you can compare the minimum and maximum loan limits set by different lenders and make an informed choice. 

What are student loans and education loans?

A student loan or an education loan is a type of credit facility that helps students pay for their education costs in India or abroad. 

‍