Education Loan: You can also take education loan for school studies, fill the form only after knowing the terms and conditions..

Education Loan for School Fees: These days, the top schools of the city have become out of the reach of common people. It is becoming difficult to pay the fees of schools located in metro cities like Delhi, Mumbai, Noida, Bangalore as well as tier 2 and tier 3 cities. It does not seem possible to control school fees, but if you want, you can get your child a first-class education by taking a school education loan. For this, you should know the eligibility and other important details.

In India, education loan facilities can also be availed for school studies (from nursery to 12th class). Usually, people take loans for higher education (graduation, post-graduation). In comparison to them, the loan taken for school fees is less popular. However, government banks like the State Bank of India, and Bank of Baroda Bank, and private banks like ICICI, HDFC, and some financial institutions also provide loans for school education.

School education loans cover school tuition fees, books, uniforms, hostel fees and other school-related expenses. School education loans are primarily designed for families who find it difficult to afford high private school fees or other education-related expenses. Most top private schools charge fees in lakhs. In such a situation, needy parents can avail of education loans from banks and NBFCs (non-banking financial companies).

School Education Loan Eligibility: Who can avail of a school education loan?

The amount and terms of a school loan may differ from those available for higher education loans. Many banks offer a small amount (up to Rs 4 lakh) for school loans without any security, while a larger amount may require collateral (such as property).

School Education Loan Eligibility

The eligibility criteria for a school education loan may vary from bank to bank. Below are some common conditions:

Indian citizenship: The applicant (student or parent) must be an Indian citizen. Some banks also offer loans to NRI (non-resident Indian) students (if they have a valid Indian passport).

Student age: School education loans are usually available to students between the ages of 3 and 18. Some banks keep the minimum age limit up to 16 years.

School admission: The student should be admitted to a recognized school (affiliated to CBSE, ICSE, state board or international board). Banks check the reputation and accreditation of the school.

Co-applicant: A parent (parent or legal guardian) has to join as a co-applicant for a school loan. The co-applicant must have a regular income (salary, business, or other source).

Income limit: Under some government schemes like Central Sector Interest Subsidy (CSIS), the annual income of the family should be up to Rs 4.5 lakh to avail of the loan. However, private banks can increase this limit to Rs 8 lakh.

School Education Loan Limit: School education loan limit
The loan amount for school education is usually up to Rs 4 lakh. But some banks also offer loans up to Rs 10 lakh. No collateral or third-party guarantee is required for loans up to Rs 4 lakh. Guarantee is provided under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL) for loans up to Rs 7.5 lakh. This amount covers the following expenses:

Tuition fees, hostel fees, and examination fees.

Books, uniforms, and other educational material.

Laptop or other equipment, if required by the school.

Travel expenses, if the student is studying in a boarding school.

Documents required for education loan

Some mandatory documents have to be submitted for the loan:

Student documents: Aadhaar card, PAN card, passport-size photo, and proof of admission to the school.

Co-applicant documents: Aadhaar, PAN, income proof (ITR, salary slip), and bank statements.

School-related: Fee structure, bills, and recognition certificate.

Security (if applicable): Property documents or other collateral documents.

Education loan by Government: Government schemes and subsidies for loans
Those taking loans for school education can avail the benefits of some government schemes.

PM-Vidyalakshmi Yojana: This scheme provides loans without collateral to meritorious students. Families with income up to Rs 8 lakh get 3% interest subsidy.

Central Sector Interest Subsidy (CSIS): Families with income up to Rs 4.5 lakh get interest subsidy during the moratorium period (course period + 1 year) of the loan.

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