Marksheet loans for students: From eligibility to interest rates; all you need to know | Mint

To pursue higher education anywhere in the world, students not only require good grades but having enough finances is equally important. Most students face difficulty in arranging finances to fund their higher education despite having good grades. In order to help such students, the government and private banks have introduced a scheme called marksheet loans.

What are marksheet loans?

A marksheet loan or education loan is a special scheme launched to fund students to pursue higher education. The purpose of this loan is to provide financial assistance to meritorious students who cannot afford higher education. Financial institutions provide loans to students with excellent academic performance and good grades to study in top educational institutions in India and abroad.

Banks use previous marksheets as an essential eligibility criteria to provide loans to deserving students. However, it is important to note that the marksheets provided to determine eligibility for a loan do not act as a security. No banks in India provide loans against marksheets as security in India.

The amount of the loan will depend on the cost of higher education and the academic performance of the student. Typically, the terms and conditions of a marksheet loan are flexible. Apart from students, people with jobs who want to pursue higher education can apply for this loan.

Interest rate on marksheet loans

Banks will use various criteria to determine the interest rate on mark sheet loans. Compared to personal loans, marksheet loans are offered at lower interest rates. Check out the interest rates offered on marksheet loans by banks in India.

Eligibility for a marksheet loan

Please note that the eligibility criteria may differ from bank to bank, the listed points are some common factors:

Costs covered by marksheet loan

Some of the common costs covered by marksheet loans are:

• Tuition fees
• Examination fees
• Accommodation costs
• Books and related expenses
• Library fees
• Two-wheeler
• Travel costs for students planning to study abroad.
• Miscellaneous expenses related to the course.

However, the costs covered by the loan will be determined by the banks according to their policies and by the student applying for the loan.

In conclusion, marksheet loans are one way for meritorious students with limited funds to fulfil their dream of studying abroad. However, just like any other loan, a marksheet loan has to be repaid in future, hence opt for one which is suitable for your financial needs.

(Note: Raising a loan comes with its own risks. So, due caution is advised)