How to Set Out on Your Educational Journey with Marksheet Loans

A marksheet loan helps ensure financial limitations do not stand in the way of you fulfilling your educational aspirations. These loans help you pursue higher education, usually related to graduate, post-graduate and vocational courses. To know more about what these loans entail, their eligibility and the documents required, read on.

What is a Marksheet Loan?

When pursuing higher education, you may realise that high tuition and living expenses are narrowing your choices. If you have been admitted to an accredited or highly-ranked education institute and are a deserving student, you can take a marksheet loan. Its name comes from the fact that it is based on your marksheet or examination scores. 

This personal loan is tailored to fill the gap to help you study in a college/university of your choice either within or outside the country. You can get a marksheet loan online from many lenders based on your eligibility and the institution you have been awarded admission to. The amount varies between up to ₹20 lakhs or more based on the financial institution. 

The best part about such courses is that you do not have to repay them while studying or while the course is ongoing. Instead, you can graduate or complete the course and then start repaying after about 1-1.5 years. This moratorium period depends on the financial institution, and the interest accrued during this period is usually added to the amount you owe. Thus, your parents or co-borrowers need not repay this loan. 

Also Read: Education Loans

Eligibility Criteria for Marksheet Loans

Ensure you qualify before applying for this loan, as it requires you to have high grades and admission to a reputed college or educational centre. Lenders normally offer a loan to you if your chances of employability after the course are high. You may be either a student, a self-employed/salaried candidate or have salaried/self-employed parents. 

Age Requirements:

• Minimum Age: 18 years
• Maximum Age: 35 or more years

Co-Applicant Obligation:

• Required for full-time courses (parent, guardian, spouse, or parent-in-law)

Collateral Requirement:

• Not required for certain loan amounts, usually up to ₹7.5 lakhs 
• Required for certain loan amounts, usually more than ₹7.5 lakhs

Educational Requirements:

• Educational Outlook: Pursuing a graduate, post-graduate degree, vocational or PG diploma course
• Institution: Admission to a college or university recognised by UGC/Govt./AICTE/IMC

Also Read: Challenges With Traditional Education Loans

Paperwork Required for Marksheet Loans

Before you apply online for a marksheet loan, keep the following documents related to you as the applicant and your guarantors/co-borrowers (usually parents) ready. 

• Identity Proof: Passport, Voter ID, Driving License, PAN Card, Aadhaar Card

• Address Proof: Utility Bills (electricity, telephone), Passport, Ration Card, Driving License, Aadhaar Card, Rental Agreement, Property Documents, Maintenance Bills

• Income Proof:
• If guarantors/co-borrowers are salaried employees:

– Recent Salary Slip/Certificate with Form 16

– Bank Statement: Last 3-6 months

– Job Continuity Proof: Appointment Letter/Experience Certificate

• If guarantors/co-borrowers are self-employed professionals:

– Bank Statements: Last 6 months

– ITR: Last 2 consecutive years

• Application Documentation: Appropriately filled loan application form, 2 passport-sized photographs, admission letter, 10th/12th mark sheet or latest education certificate, statement of cost of study

• Additional Proof for self-employed:

• Office Address Proof: Utility bills, property documents, rent agreement
• Business Existence Proof: Tax registration, shop establishment proof, company registration certificate

Courses Financed By Marksheet Loans

Some of the courses covered under these loans are:

• Graduation and post-graduation courses along with degree or diploma courses 
• Education in disciplines such as medicine, management, IT and more
• Technical as well as vocational training courses such as nursing, teacher training, aviation and more

Also Read: Education Loan For Professional Courses

Expenses Covered by Marksheet Loans

Some of the typical expenses covered by this loan are:

• Tuition fees
• Living and accommodation expenses
• Commuting expenses 
• Books, equipment, computer, lab, exam and other fees 
• Travel expenses from place of residence to the college/institution 
• Other expenses incurred in the course of completion 

Interest Rates of Marksheet Loans

While marksheet personal loan rates may change over time, here are the rates from premium financial companies as of August 2024:

Bank	Interest Rates (Per Annum)
State Bank of India	8.10% onwards
HDFC Bank	9.05% onwards
Canara Bank	8.80 % onwards
Union Bank of India	8.20% onwards
Bank of Baroda	8.15% onwards
Punjab National Bank	9.20% onwards

Also Read: Personal Loan Vs Education Loan

In case you are unable to qualify for competitive marksheet loans or are falling short of funds in your academic pursuits, you can pay for any ed-tech course on EMI with Fibe. Get up to ₹5 lakh to sign up for any online course and upskill to give yourself the best chance to succeed. 

Take up to 3 years and repay comfortably in low-cost or no-cost EMIs. With minimal documents and an easy application process, Fibe’s EdTech Finance offers you a great way to accomplish your educational goals. Download the Fibe App or visit the website to explore its benefits.  

FAQs on Marksheet Loans

Can I get a loan on my 12th marksheet?

Yes, you can. Most lenders offering marksheet loans require a copy of your 12^th or 10^th standard marksheet. You can apply for this loan with even 50% marks with certain issuers.

How do banks verify marksheets?

The bank or lender will contact your school or educational institute to verify your marksheet.

Can I get a loan on my degree certificate?

Yes, but first, you must be eligible for a marksheet loan. If eligible, certain lenders will issue the loan.