When planning higher education, an education loan often becomes a practical solution to cover tuition fees, living expenses, and other academic costs. Typically, parents are considered the default co-applicants for such loans. However, in certain cases, students may look to their brothers or sisters for support. This raises an important question—can siblings help you get an education loan?
The simple answer is yes, siblings can help, but the process depends on the lender’s criteria, your sibling’s financial profile, and the type of loan you’re applying for. Let’s explore how this works in detail.
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While traditional banks follow a rigid structure, newer platforms like Propelld are offering more flexible options tailored to today’s students. These alternatives may be especially helpful when exploring non-traditional co-applicants or funding routes.
How Can Siblings Help in the Education Loan Process?
Siblings can assist in your education loan journey in two significant ways:
- As a Co-applicant
A sibling with a stable income, good credit score, and financial documents can be accepted as a co-applicant. This increases your chances of approval, especially if your parents are not financially eligible or available to support your loan. - As a Guarantor
Some banks and NBFCs allow siblings to act as guarantors. This means they legally promise to repay the loan in case of default, even if they are not directly involved in the repayment schedule.
In both cases, lenders evaluate your sibling’s financial health and relationship with you before making a decision.
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Eligibility of Sibling as a Co-applicant
Not all lenders accept siblings as co-applicants, but many NBFCs and private banks are open to it, provided certain conditions are met. These include:
- The sibling must be an Indian citizen
- Should be earning regularly (salaried or self-employed)
- Must have a good credit score
- Should ideally fall within the age range of 21–60 years
Some lenders may also require proof of relationship, such as a birth certificate or legal affidavit, especially when the surname differs or the relation needs verification.
Why Choose a Sibling Over a Parent as a Co-applicant?
Sometimes, involving a sibling as a co-applicant makes more sense. This is particularly helpful in situations where:
- Parents are retired or nearing retirement
- Parents don’t have a steady income or good credit history
- Siblings are financially well-settled and willing to help
In such cases, having a sibling as a co-applicant can reduce interest rates, increase the loan amount eligibility, and make approval faster, especially when applying to private lenders.
Depending on your situation, you might also want to consider an Education Loan without Collateral, especially if a co-applicant is hard to arrange.
Benefits of Having a Sibling as Co-applicant
Here are some key advantages of involving a sibling in your loan application:
| Benefit | Description |
| Improved Loan Eligibility | If your sibling has a strong income, your loan approval chances increase |
| Better Terms | A good credit history can help you get lower interest rates |
| Higher Loan Amount | You may qualify for a larger loan amount depending on their income |
| Alternative Support | Useful when parents aren’t eligible or willing to co-sign |
These advantages can be especially useful if you’re planning to study abroad or at a premium institute with higher costs.
Points to Consider Before Making Your Sibling a Co-applicant
While involving a sibling might seem like a good solution, there are also some important considerations:
- Legal Liability: A co-applicant is legally responsible for loan repayment. If you default, your sibling’s credit score will be affected.
- Financial Burden: If your sibling already has financial commitments (like their own EMIs), this might strain their finances.
- Documentation: Your sibling will need to submit income proof (like salary slips or ITR), PAN card, identity/address proof, and a relationship document.
- Emotional Understanding: It’s important to have transparent communication. Both of you should clearly understand the responsibilities before proceeding.
What If Sibling Is Not Financially Eligible?
If your sibling doesn’t meet the income or credit score requirements, or is unwilling to take on legal responsibility, you still have other options:
- Apply with another family member who meets the criteria
- Offer collateral if applying for a secured loan (such as property or FD)
- Explore NBFCs or private lenders with flexible co-applicant policies
- Choose a lender that offers education loans without co-applicant for top universities
Conclusion
Siblings can absolutely help you get an education loan, either as a co-applicant or guarantor. Their financial standing can significantly influence your loan approval, interest rates, and overall eligibility. However, both parties should clearly understand the financial and legal responsibilities involved.
Before applying, check with lenders regarding their specific co-applicant policies and evaluate if your sibling is comfortable supporting you financially. With the right planning and transparent communication, your sibling can be a strong pillar in your education journey.
FAQs
Can I get an education loan with a sibling as a co-applicant?
Yes, many lenders accept a sibling as a co-applicant if they have a stable income and good credit history.
Is it possible to take an education loan with sibling support?
Yes, sibling support in the form of financial backing or co-application can help improve your chances of getting an education loan.
Can my sibling be a guarantor for my education loan?
Yes, some financial institutions allow siblings to act as guarantors if they meet income and creditworthiness criteria.
What is the sibling eligibility for education loans?
To support your education loan, your sibling must be an Indian citizen, financially stable, and ideally have a good credit score.
What is the maximum loan amount I can get for studying in India and abroad?
The maximum loan amount can go up to ?150 lakh for studies in India and ?300 lakh for studies abroad, depending on the lender.
Is there an age limit for applying for an education loan?
Yes, most lenders accept applicants between 16 and 35 years of age.
Can I apply for an education loan before securing admission?
You can start the process, but final loan approval usually requires proof of admission.
What expenses are covered under an education loan?
Education loans typically cover tuition, exam and library fees, books, travel, and living expenses.
Is collateral required for all education loans?
Collateral is generally not required for loans up to ?7.5 lakh but may be needed for higher amounts.
Can I avail tax benefits on education loans?
Yes, interest paid on education loans is tax-deductible under Section 80E of the Income Tax Act.
What is the typical repayment period for an education loan?
The repayment tenure can extend up to 15 years depending on the loan amount and lender.
When does the repayment of the education loan start?
Repayment usually begins after a moratorium period covering the course duration plus 6–12 months.
Can I prepay my education loan?
Yes, most lenders allow prepayment without any penalty.
What happens if I am unable to repay the loan?
Failure to repay can affect your credit score and lead to legal action, so it’s best to contact your lender for help.