Studying abroad offers an invaluable experience, but the financial hurdles can be daunting. The cost of tuition, living expenses, travel, and more can quickly add up, making education loans essential for many students.
Elan Loans have become a popular choice among Indian students due to their flexible terms and competitive interest rates. This guide will walk you through everything you need to know about Elan Loans for study abroad loan requirements, including eligibility, the application process, and repayment options.
By the end of this blog, you will know
Elan Loans offers both secured and unsecured loan options for study abroad, catering to a variety of financial profiles and needs.
Secured loans start at 9.15%, while unsecured loans begin at 10%, offering lower rates than those of other private lenders.
Elan simplifies the application process with minimal documentation and quicker processing times, making it faster than traditional bank loans.
Repayment can extend up to 15 years, with a 6-month moratorium period following course completion before payments begin.
Ensure you compare multiple lenders, factor in all expenses, double-check documents, and understand interest terms to avoid delays and rejections.
Why Consider Elan Loans for Study Abroad?
Elan Loans stand out in the crowded market of study abroad loans for several reasons:
Flexible Loan Amounts
Whether you need a loan for bachelor’s, master’s, or even diploma courses abroad, Elan Loans caters to all your financial needs. They offer both secured and unsecured loans.
Competitive Interest Rates
Elan Loans offers lower interest rates compared to many private lenders and NBFCs. For secured loans, rates can start as low as 9.15%, depending on the collateral and university.
Easy Processing
Elan’s application process is structured to save you time and reduce stress. You don’t have to deal with excessive paperwork, and approval timelines are generally quicker than with traditional banks.
Loan Scheme Database
Explore 139+ loan schemes from 45+ banks, including government-sponsored schemes.
Real-Time Application Tracking
Check the status of your loan application anytime without visiting the bank.
Secure Document Upload
Upload KYC and supporting documents safely on the portal for lender verification.
Institute Search & Verification
View the consolidated list of approved institutes and courses eligible for education loans, at one place.
Real Time Updates
Get updates on application status, approvals, or queries directly through the portal.
Integrated Grievance Redressal
Raise complaints or queries to banks if there are delays or issues in processing. You can also reach out to the grievance cell.
Interest Rates and Repayment Options for Elan Loans
The interest rate for secured loans typically starts at 9.15% and can be lower depending on the collateral and the university’s ranking. Whereas, unsecured loans usually carry higher interest rates, starting from 10% due to the higher risk involved.
Here are some key repayment terms you must keep in mind:
Moratorium Period
The moratorium period extends for the duration of your course plus 6 months after completion. This allows you time to settle and find a job before you start repaying.
Repayment Tenure
The repayment tenure for Elan loans can extend up to 15 years, offering flexibility and ease of repayment once you start working.
Prepayment Options
Elan allows early loan repayment without penalty, so you can clear the loan faster if your financial situation improves.
Next, let’s take a closer look at how to qualify and apply.
Eligibility Criteria for Elan Loans for Study Abroad
Before applying for an Elan Loan, it’s crucial to understand the eligibility requirements. These criteria are designed to assess your academic profile, financial stability, and potential to repay the loan.
Secured loans, in which you pledge assets (such as property or fixed deposits) to the lender, typically offer lower interest rates and larger loan amounts. However, the eligibility criteria are stricter:
You must provide valuable assets, such as residential/commercial property or fixed deposits.
Your property must be legally owned, with clear title deeds, tax receipts, and a property valuation.
The co-applicant (typically a parent) should have a CIBIL score of 700 or above.
The student must be at least 18 years old.
Proof of admission to a recognised university abroad is required.
Secured loans are available to students who have assets to pledge and require higher loan amounts, sometimes up to INR 3 Crores, depending on the collateral.
If you don’t have assets to offer as collateral, you can still secure an education loan through an unsecured loan. These loans focus on the applicant’s creditworthiness and financial background.
The co-applicant’s (parent or guardian) annual income must typically exceed INR 6 Lakhs.
A minimum credit score of 700 is required for the co-applicant to strengthen the loan application.
A solid academic history is crucial, with strong grades in your previous degrees.
Top-ranked universities (according to QS rankings) significantly boost your chances of securing an unsecured loan.
For some students, strong test scores, such as a GRE score of 300+, can improve eligibility.
To apply for an Elan Loans for study abroad, you need to submit a few essential documents. Here’s a checklist for both the applicant and the co-applicant:
Document Category
Documents Required
Student Documents
Admission Letter, 10th/12th/Graduation Marksheets, standardised test scores (GRE/GMAT/TOEFL), Passport, and Recent Passport-size photos.
Co-Applicant Documents
PAN Card, Aadhaar, Income Proof (ITR, salary slips), Bank Statements (last 6 months).
Collateral Documents (Secured Loan)
Property Title Deed, Property Tax Receipts, Legal Reports, and Valuation Reports for pledged assets.
Applying for an Elan education loan can seem like a lengthy process, but breaking it down into clear steps can make it much more manageable.
Here’s how you can apply:
1. Check Eligibility
Before applying, ensure you meet the eligibility criteria mentioned above. If you’re unsure, consult with Elan Loan Advisors, who can assess your eligibility and guide you through the process.
2. Gather Required Documents
Keep a comprehensive document package, which includes student, coapplicant, and collateral documents. It will help expedite the process.
3. Submit Application
Once all documents are ready, submit your application either online through Elan’s portal or visit an Elan office in person. Ensure that all details are accurate to avoid delays.
4. Verification Process
Elan will review your application and verify the documents you have provided. For secured loans, property evaluations and legal checks will be carried out. This step usually takes around 7-10 days.
5. Loan Sanction Letter
If your application is approved, you will receive a sanction letter detailing the loan amount, interest rate, repayment terms, and disbursement schedule. This letter is also crucial for visa processing.
6. Loan Disbursement
Once the loan is sanctioned and all paperwork is signed, the funds will be disbursed. Tuition fees are typically paid directly to the university. Living expenses can be transferred to your foreign exchange card or personal bank account.
Planning to take an instant loan for higher studies? Ensure you are familiar with the co-applicant rules first. Our guide on ‘Who Can Be a Co-Applicant for an Education Loan’ breaks down the eligibility and documents required.
Common Mistakes to Avoid During the Study Abroad Loan Application
The journey to securing a study abroad loan can be challenging, but avoiding a few common mistakes can make the process much smoother and faster.
Here are the key missteps students often make, along with tips on how to avoid them for a hassle-free loan experience.
Not Comparing Lenders
Choosing the first lender you come across can be a mistake. Interest rates, loan limits, and repayment flexibility can vary greatly. Always compare multiple lenders to find the best terms for your needs.
Underestimating the Total Loan Amount
Many students only factor in tuition fees and overlook living expenses, travel costs, and insurance. Make sure your loan covers the full cost of studying abroad to avoid funding gaps.
Submitting Incomplete or Incorrect Documents
Missing or outdated documents, like bank statements or ITRs, can delay or even cause your loan to be rejected. Double-check that all required documents are included, accurate, and up to date.
Ignoring the Co-applicant’s Credit Score
A poor credit score from your co-applicant can lead to rejection, even with a strong academic record. Ensure your co-applicant has a CIBIL score above 700 and a stable income to improve your chances.
Misunderstanding Interest Terms
Some students assume no interest accrues during the moratorium period, but most loans charge simple interest during this time. Clarify how interest is calculated to avoid surprises.
Delaying Your Loan Application
Waiting until the last minute can risk missing out on reasonable loan offers or delaying visa approvals. Start your loan application as soon as you have your university admission letter.
Choosing the Wrong Loan Type
Applying for a secured loan without collateral or an unsecured loan without a strong co-applicant can lead to rejection. Pick the loan type that aligns with your financial profile.
Not Reading the Fine Print
Hidden charges or prepayment penalties can affect the total cost of your loan. Always read the loan agreement thoroughly before signing, and ask for clarifications if needed.
Elan Loans provides a reliable, flexible, and affordable solution to fund your overseas education. Whether you need a secured or unsecured loan, Elan Loans for study abroad loan requirements include favourable interest rates, quick disbursement, and easy documentation, making it an excellent choice for students.
If you’re looking for the right partner that makes this education loan process smoother and simpler,Propelldcan help. With quick digital approvals, collateral-free loans up to ₹50 lakhs, and flexible repayment options, Propelld takes the hassle out of financing your global education.
FAQs About Elan Loans for Study Abroad Loan Requirement
Can I apply for an Elan loan if I haven’t yet secured my visa?
Yes, you can apply for an Elan loan once you have admission to a recognised university abroad, even before your visa is approved. However, you’ll need to submit your visa details later for the disbursement of funds.
How soon can I expect my Elan loan to be approved?
Elan’s loan approval process is typically quick, taking around 7–10 days for unsecured loans. For secured loans, it may take longer due to property evaluation and legal checks.
Does Elan offer loans for diploma programs abroad, or only degree courses?
Yes, Elan loans are available for both degree and diploma programs abroad, provided you meet the eligibility criteria and have secured admission to a recognised institution.
How do I decide if I should apply for a secured or unsecured loan with Elan?
If you have assets to pledge, a secured loan can offer lower interest rates and higher loan amounts. If you don’t have collateral, unsecured loans are available but require a strong academic profile and a reliable co-applicant.
Can my co-applicant be someone other than my parents?
Yes, your co-applicant can be a sibling, spouse, or legal guardian, as long as they have a stable income and a good credit history.
How is the interest rate calculated on Elan loans for studying abroad?
Elan’s interest rates typically start around 9.15% for secured loans and 10% for unsecured loans. The final rate depends on factors like collateral, loan amount, and university ranking.
Can Elan cover the total cost of studying abroad, including living expenses?
Yes, Elan loans usually cover tuition fees, living expenses, travel costs, and insurance, ensuring comprehensive financial support.
Is there a minimum GRE or IELTS score required to qualify for an Elan loan?
There is no fixed minimum score requirement. However, higher test scores can strengthen your application, especially for unsecured loans.
Can I use an Elan loan to study in any country?
Yes, you can use the loan for most countries, as long as the university is recognised and the course is eligible under the lender’s criteria.
Do I need to make repayments during my course with an Elan loan?
For secured loans, repayment usually starts after the moratorium period. For unsecured loans, interest may accrue during the course and be added to the principal.
Can I pay off my Elan loan early without facing penalties?
Yes, Elan generally allows early repayment without prepayment penalties, helping you save on interest.
What if my Elan loan application gets rejected?
You can reapply after addressing the reasons for rejection, such as improving your co-applicant’s credit profile or submitting additional documents.
Can I increase my Elan loan amount after approval?
Yes, you may request a top-up loan if your expenses increase, subject to lender approval and updated documentation.
How important is my university ranking for loan approval?
University ranking plays a significant role, especially for unsecured loans, as lenders prefer institutions with strong placement records.
Are there any hidden charges in Elan education loans?
Most charges are disclosed upfront, but you should check for processing fees, insurance, and administrative costs before finalising.
Planning to fund your higher education but unsure if you qualify for a student loan? Understanding education loan eligibility in India is the first step toward securing the right financial support for your studies whether in India or abroad.
This comprehensive guide covers everything from basic eligibility criteria to government schemes, collateral-free options, and how Propelld simplifies the process with flexible eligibility and fast approvals.
By the end of this blog, you will know
While age, institute and credit score are the majorly known requirements, they are not all for an education loan. Read on for an exhaustive list of eligibility requirements.
Know the eligibility requirements for government schemes and for loans without collateral.
Know how to check your eligibility for education loan and how to calculate EMIs through our easy to use EMI calculator.
What is Education Loan Eligibility?
Education loan eligibility refers to the set of parameters that determine whether a student qualifies for financial assistance. These factors vary across lenders but generally include academic performance, admission status, course type, age, and co-applicant income.
Education Loan Eligibility for Students
The foremost question that needs to be answered before jumping onto anything else would be whether you qualify for a student loan. You will have to meet several prerequisites before financing your further education with an outside source. Some of the primary points for education loan eligibility in india are as follows:
Eligibility Criteria
Details
Chosen Course
– Eligibility may vary based on course type (undergraduate, graduate, postgraduate, doctoral, specialised).
– Check with lenders for financing options and specific criteria related to your course.
Applicant’s Nationality
– Eligibility can differ based on nationality; lenders may favour citizens or permanent residents.
– International students may face additional challenges and should research suitable loan options for non-citizens.
Age and Co-Signer
– Age requirements vary; minors usually need a co-signer.
– Verify minimum and maximum age limits for eligibility.
Academic Institute
– Some universities have partnerships with lenders for better loan terms.
– Enroll in recognized institutions; lenders may provide lists of approved schools for financing.
Academic Performance
– Some lenders may consider GPA, specific scores, or certifications.
– Good academic performance can enhance loan eligibility; keep relevant documents ready for verification.
Financial Factors
– Lenders assess the applicant’s financial background to determine repayment capability.
Credit History
– A strong credit history is preferred; limited or no credit history may affect eligibility.
– Co-signers can help improve approval chances if the applicant lacks credit.
Income Prospects
– Lenders evaluate current financial status and future earning potential.
– Co-signer’s income may also be assessed if the student’s income is not applicable.
Debt-to-Income Ratio
– This ratio is a critical factor for lenders to gauge the ability to handle additional debt.
– Understanding the calculation can help in meeting eligibility requirements.
For students wondering about education loan eligibility after 12th in India, here’s a complete guide on how to apply, which documents are needed, and which banks are more likely to approve loans early on read more in this education loan after 12th blog.
When we talk about eligibility, Propelld provides hassle-free education loans with easy documentation and flexible eligibility. For example, talking about co applicants, we consider not just parents but also grandparents and our parents’ siblings as co applicants. We do make every effort not to reject your loan.
Can I get an education loan if my co-applicant doesn’t have ITR or stable income?
Yes. Some NBFCs and digital lenders like Propelld consider alternative income proofs such as rental income, pension, or business cash flow if formal ITRs are unavailable.
Do lenders check academic backlogs when evaluating education loan eligibility?
Yes, especially for technical or management courses. However, if you have strong current grades or admission to a reputed college, most lenders overlook backlogs.
How to Check Your Education Loan Eligibility Online
You can quickly check your eligibility for an education loan through Propelld’s digital process:
Step 1: Visit Propelld’s official Education Loan Page Step 2: Select ‘Check Eligibility’ Step 3: Enter your course, institution, and co-applicant details Step 4: View customized loan offers Step 5: Apply online — get approval within 7 days
With Propelld, you can even get 100% of your education fees financed with no collateral required. Do check our margin money policy for complete details.
After checking your eligibility, the next step is to calculate the EMI and repayment schedule to better plan your finances. One of the easiest ways to do this is using an EMI Calculator.
As per the calculator, your monthly EMI would be approximately ₹14,500.
This calculation allows you to plan your finances effectively. This tool also accommodates various repayment scenarios, ensuring you have a clear picture of your loan journey.
Do check out our interest rates slabs as per profiles, APR, reducing balance vs flat rate and some worked examples on interest calculation, on ourInterest Rate Policy Page.
How to Improve Your Eligibility for an Education Loan?
To ensure that students receive financial aid, banks are vigilant while evaluating a candidate’s eligibility. The general academic standing of the applicants, their intended course of study, and their present admission status are taken into account before authorizing a loan.
Here are a few steps that can help you improve your eligibility for an education loan:
Scoring high grades/ranking in the qualifying exams
Displaying good academic record
Getting admission to a reputed/top-tier institute or university
Strong financial background of parents/guardians/co-borrower
Displaying good prospects for future employment/income generation
Here is a list of documents that you must submit if you are applying for an education loan:
Document Category
Details
Educational Certificates and Admission Documents
– Academic qualifications (mark sheets or certificates for HSC, SSC, Graduation, or Post Graduation).
– Admission letter from the educational institution.
– Schedule of tuition and other fees.
Personal Identification/KYC Documents
– Proof of identity (Aadhaar card, PAN card, Voter card, Passport, Driving licence).
– Proof of address (Voter ID, utility bills, rent/lease agreements, Aadhaar card, Passport).
Proof of Income
– For salaried individuals: Employee ID Card, Salary Certificate, recent salary slips, income tax returns.
– For self-employed individuals: Proof of turnover, balance sheets, business ownership proof, income tax returns.
Banking Documents
– Recent bank statements (last 6 months) or salary credit statements.
– For NRI applicants: Additional statements for NRE/NRO accounts.
Documents Required from Students
– Entrance exam results and proof of admission.
– Statement detailing the cost of study and expenses, along with the college/course prospectus.
Documents Required from Co-applicants/Guarantors
– Personal identification and residence proof.
– Income proof (salary slips, income tax returns, business financial statements).
– Property or security documents if collateral is involved.
Vidya Lakshmi Portal Details and Cheque
– Details related to the Vidya Lakshmi Portal, if applicable.
– A cheque for processing fees or initial payments, if required.
Eligibility: Minimum age should be 16 and maximum should be 35, Good academic record, Completed Class 12 or Diploma
Expenses covered: College fees, exam/lab/library fee, travel costs/passage money for studying abroad, books and equipments, computer costs covered if required by the course
Available for technical/professional courses/postgraduation courses (MCA, MBA, MS, etc.), courses by CIMA London, CPA in USA etc, Degree/Diploma programmes
Expenses covered: College fees, exam/lab/library fee, travel costs/passage money for studying abroad, books and equipments, computer costs covered if required by the course
Expenses covered: College fees, exam/lab/library fee, travel costs/passage money for studying abroad, books and equipments, computer costs covered if required by the course
Can I get an education loan without a co-applicant if I have a strong GRE/GMAT score?
Yes. Many lenders consider top global admit + high standardized test scores as indicators of repayment potential and may waive co-applicant requirements
Do unsecured education loans have shorter repayment periods?
Usually yes. Unsecured loans often come with 7–10 year repayment terms versus 10–15 years for secured ones, depending on loan amount and lender policy.
Can You Get an Education Loan Without Collateral or a Co-Signer?
Reader Insight (from a Reddit Discussion)
A user recently shared that his 23-year-old friend, admitted to a reputed German university, needed a ₹10–12 lakh loan but faced repeated rejections. No property for collateral, and her retired father couldn’t qualify as a co-applicant. He asked, if it is really impossible to get an education loan without a guarantor or collateral.
As discussed above also, unsecured education loans are possible, especially through NBFCs and fintech lenders who assess your profile more holistically than traditional banks. Here are a few factors that can make this task easier:
1. Focus on Academic & Admission Strength
NBFCs and new-age lenders evaluate your academic record, university ranking, and future earning potential rather than depending only on your family’s assets. A strong academic and admission profile can significantly improve approval chances.
2. Choose the Right Lender Type
Traditional banks mostly require collateral or a financially strong co-applicant. In contrast, NBFCs like Propelld assess your academic merit, employability, and course ROI (Return on Investment) to decide your eligibility.
3. Understand the Trade-offs
While unsecured loans offer flexibility, they come with:
Slightly higher interest rates than secured loans.
A lower sanctioned amount in some cases.
Yet, the upside is significant too: no asset risk, quicker approval, and simpler documentation.
4. Pro Tip: Strengthen Your Profile
If you can, add a co-applicant with a modest but stable income (such as a pensioner parent). Even partial income stability can positively influence the lender’s decision.
How to Get an Education Loan After 12th?
Although you may be a student intending to secure an education loan after completing the 12th grade, there are several crucial factors you must understand. However, it’s very easy to secure finances for your studies.
Lets see the major eligibility requirements for education loan after 12th:
Eligibility Criteria for Education Loan After 12th Class
Criteria
Description
Citizenship
The applicant must be an Indian citizen.
Completion of Class 12th
The student should have completed their Class 12th examination from a recognised board or institution.
Admission to Recognised University
The applicant must have secured admission to a recognised university or college for further studies.
Can You Get an Unsecured Education Loan After 12th Class?
Students can apply for an education loan to study in India or abroad after completing 12th class. You can get a maximum of 2 crores unsecured loan with an interest rate of 10.5 to 12.5%.
Government Education Loan Schemes
The Government of India offers support to Indian students who want to pursue higher education. Students can get either a government education loan or help with the interest on loans they take from banks.
Here are 5 popular government education loan schemes, along with their major features and eligibility.
Interest subsidy for students pursuing higher education abroad.
Eligible students from economically weaker sections.
Dr. Ambedkar Central Sector Scheme
Financial assistance for students from Scheduled Castes for higher education.
SC students, minimum 50% marks in previous examinations.
Apart from these popular student loans, you can explore the official websites of your state government. There you can get information about financial aid for students to study abroad.
Propelld: Offering Digital Solutions for Education Loans
Students usually face problems like not having a credit history, cumbersome procedural formalities, and delayed approvals in the offline loaning system. However, you can brush aside such botherations with the education loan process at Propelld, which is 100% digital and quicker than the conventional methods.
Get your loan disbursed in just 3 steps:
Fill the Institute and Personal Details in the Online Application
Hassle Free Digital KYC and Loan Approval by us.
Loan Amount is Transferred Directly to the College
Do check out our service level standards and commitments on our SLA Policy Page.
Can I get a 20 lakh education loan without collateral?
Yes, some private banks and NBFCs like Propelld offer up to 20 lakh loans without collateral, depending on the course, co-applicant’s profile, and eligibility.
Can I get an education loan with 50% marks?
Yes, several banks provide loans for students with a minimum of 50% marks in higher secondary or graduation exams.
Who is eligible to apply for an education loan?
Indian students aged 18 or above with admission to a recognized course in India or abroad are generally eligible.
Is a co-applicant required for an education loan?
Yes, most lenders require a co-applicant, such as a parent, guardian, or spouse, who has a stable income and good credit history.
How does the co-applicant’s income affect loan eligibility?
The co-applicant’s income is a key factor in determining repayment capacity and loan amount. A higher, stable income improves eligibility and interest rates.
Does the co-applicant’s credit score affect approval?
Yes, lenders consider the co-applicant’s credit history and financial stability when approving the loan and setting interest rates.
Can education loans be taken for studying abroad?
Yes, education loans are available for international courses, provided the institution and program are approved by the lender.
What types of courses are covered under education loans?
Loans cover undergraduate, postgraduate, diploma, and professional certification programs from recognized institutions in India and abroad.
What is the minimum salary requirement for a co-applicant?
While many lenders recommend a minimum monthly income of ₹30,000, some accept lower incomes if other eligibility criteria are strong.
Who can reject an education loan application?
Banks may reject applications if the applicant’s academic performance is low, age criteria are not met, or the co-applicant’s financial profile is insufficient.
Is taking an education loan risky?
Risk exists if repayments are missed or if the student takes on more debt than manageable. Defaults can negatively impact the credit score of both the student and co-applicant.
How do I improve my education loan eligibility?
Maintain strong academic performance, ensure the co-applicant has a stable income, and meet age criteria (usually 16–35 years).
What are the general eligibility criteria for education loans in India?
Applicants must be Indian residents, have secured admission to a recognized course, be within the age limit (typically 18–35), and usually have a co-applicant with stable income.
Is student income necessary for loan eligibility?
No, lenders generally assess the co-applicant’s income for repayment capacity. The student’s income is not mandatory.
How can I apply for an education loan in India?
Research banks and NBFCs, check eligibility criteria, submit admission proof, academic records, and co-applicant income proof, and complete the application process online or offline.
What documents are required for an education loan?
Commonly required documents include admission proof, identity and address proof, academic records, co-applicant’s income proof (salary slips, ITR, bank statements), and collateral documents if applicable.
Can students with low academic scores still get a loan?
Yes, lenders consider the co-applicant’s profile, the course’s prospects, and repayment ability, not just academic performance.
What is the maximum age limit for unsecured education loans?
Unsecured loans generally have a maximum applicant age of 28–35 years, depending on the lender.
Can education loans cover living expenses and travel costs?
Yes, most loans cover tuition fees, hostel charges, living expenses, and travel costs for both domestic and international studies.
How long does it take to get an education loan approved?
Approval timelines vary by lender. NBFCs like Propelld may approve faster (within a few weeks), while traditional banks may take longer, especially for secured loans.
