Marksheet Loan

Marksheet loan also known as education loan or student loan is a financial product offered by the banks and financial institutions to support students pursuing higher education in India or abroad. These types of loans are designed to provide financial aid to academically meritorious students who cannot afford the cost of higher education. The loan is granted based on the student’s academic performance. Many people think that the banks take the mark sheets as security while offering this loan. But this is not true as no Indian bank offer loan against marksheet as security. To apply for this type of loan, students are required to submit copies of their mark sheets, proof of admission, and other necessary documents. 

Marksheet loans offer substantial funding with flexible terms and quick disbursal. Even working professionals aiming to continue their education can apply. 

Top Indian Banks that Offer Marksheet Loan

The below-listed are some of the top Indian banks offering education loans based on a marksheet: 

1. State Bank of India
2. HDFC Bank
3. Axis Bank
4. Canara Bank
5. SBBJ
6. Union Bank
7. UCO Bank
8. Bank of Baroda
9. Punjab National Bank
10. Non-Banking Finance Company (NBFC)

Marksheet Loan Interest Rates 2025

The rate of interest for education loan also known as marksheet loans offered by some of the top-banks are as listed below: 

Expenses Covered by Marksheet Loan

1. Graduation, Post-graduation/Degree/Diploma courses from renowned colleges or universities approved by UGC/ AICTE/IMC/Govt. etc.
2. Regular Degree and Diploma courses conducted by leading autonomous educational institutes such as IIM, IIT etc.
3. Educational disciplines including Engineering, Management, Medicine, Computer science, Pure Science, Architecture, Agriculture, Hotels and hospitality, Fine arts and design etc.
4. Technical and vocational training courses such as aviation, air-hostess, shipping, nursing, teacher training etc.

Marksheet loan also known as education loan covers the following expenses:

1. 100% of the payable college tuition fees
2. Accommodation charges, if any
3. Books and equipment
4. Library fees
5. Examination fees
6. Travelling expenses for studying in abroad, if any
7. Cost of two-wheeler
8. Other miscellaneous expenses necessary to ensure completion of course

Eligibility Criteria

1. The applicant must be an Indian resident who has secured admission to a recognized college or university in India or abroad. 

1. They should be between 18 and 35 years of age at the time of applying for the loan. 

1. The applicant must be enrolled in a graduate, postgraduate degree, or a postgraduate diploma program. 

1. Admission must be confirmed in an institution approved by UGC, AICTE, the Government, or other recognized authorities. 

1. For full-time courses, a co-applicant is required - this can be a parent, guardian, spouse, or parent-in-law (in case of marriage). 

Documents Required to Apply for a Marksheet Loan

1. Properly filled Loan Application Form
2. Letter of admission
3. Copy of 10th/12th mark sheet or latest education certificate
4. Statement of cost of study
5. 2 passport size photographs
6. Pan Card and Aadhaar Card of the student and Parent/ Guardian

Identity Proof Documents

1. Driving License/Voter ID/Passport/Aadhaar Card (Copy of any one)

Address Proof Documents

1. 6 months bank account statement of the student or guarantor or co-borrower/Rental agreement/Ration card/Electricity Bill/Tel Bill/Gas Book (Copy of any one of these)

Income Proof Requirements

1. Latest salary slips or Form 16 of the parent/ guardian/ co-borrower
2. Last 6 months bank statement or updated bank passbook
3. Updated 2 years ITR (Income Tax Return with income computation) or Last 2 years IT assessment order of parent/guardian/co-borrower
4. Statement of the assets and liabilities of the parent/guardian/co-borrower

Loan Amount & Quantum

The quantum of mark sheet loan are:

1. Up to Rs.10 lakh for studying in India
2. Up to Rs.20 lakh for studying abroad

Note: In special cases at bank's discretion, a higher amount is lent to the applicants.

Loan Approval Timeline

The approximate time required for the approval of the loan is 15 to 30 working days that is calculated right from the receipt date of the application. The receipt is the guarantee that the application is completed in all aspects.

Security Required for Marksheet Loan

The security of the loan is dependent on the quantum or required loan amount and the credit value of the principal borrower. The collaterals that are generally accepted are fixed deposit, residential property which can be a house, apartment or flat, non-agricultural land or life insurance that has an assured sum of 100% of the marksheet loan amount. In some cases, banks also offer loans without collateral. 

Marksheet Loan Disbursement Process

The marksheet loan will be disbursed either in installments or in full payment keeping in account the amount of fund to be disbursed along with the fee schedule as reviewed by the bank directly to the mentioned educational institute.

What is the role of the guardian?

In the loan processing, the role of the parent(s) or guardian of the applicant is considered as a co-applicant in respect of the student loan. Here the guardian plays the role of the primary debtor.

Tips to Get Lower Interest Rates on Marksheet Loan

If you want to get a marksheet loan, then you can follow the below-mentioned tips:

1. First, check with your educational institution to see if they have a tie-up with any specific lender offering negotiated interest rates. If not, ask whether they have a pre-approved loan arrangement in place that could simplify and speed up the loan sanction process compared to external lenders.
2. Just in case, if you plan to move out abroad, ask your institution whether it is possible to get a loan on campus, only after you have registered for the course. Going abroad can help you get better interest rates too. For example - The basic interest rates in the US and UK is considered lower than that of India presently.
3. In order to get low interest along with faster approval, good terms with the bank's branch manager can help. For instance, if anybody from your family or you is a regular visitor at the local branch of the bank, you can use this as an advantage. The branch manager can help you in getter better loan terms with quick disbursal.

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