Education Loan Affidavit: 2025 Complete Guide in India

An education loan affidavit is a sworn legal document required by banks, NBFCs, or scholarship providers in India to verify a student’s intent to use loan funds for educational purposes and confirm repayment commitments. This comprehensive guide provides step-by-step instructions, a free downloadable template, and expert tips to ensure your affidavit is legally valid and accepted. For more legal support, explore our services page.

Student preparing education loan affidavit
A properly drafted affidavit ensures smooth loan approval

Table of Contents

What is an Education Loan Affidavit?

An education loan affidavit is a sworn statement by a student or borrower declaring their intent to use loan funds for educational purposes, such as tuition, books, or living expenses, and committing to repay the loan as per agreed terms. It is commonly required by banks (e.g., SBI, HDFC), NBFCs, or scholarship providers to ensure compliance with loan agreements and prevent misuse of funds. The affidavit must be notarized to be legally valid.

Notary public stamping education loan affidavit
Notarization is mandatory for a legally binding affidavit

Why is an Education Loan Affidavit Important?

The affidavit serves several critical purposes:

  • Loan Approval: Satisfies bank or NBFC requirements for loan disbursement
  • Legal Commitment: Binds the borrower to repay the loan as per terms
  • Scholarship Compliance: Verifies eligibility for education-related funding
  • Transparency: Ensures funds are used for intended educational purposes

Learn more about legal documentation on our guides page.

Education loan affidavits are regulated by:

  1. Notaries Act, 1952: Mandates notarization of affidavits
  2. Indian Evidence Act, 1872: Recognizes affidavits as legal evidence
  3. RBI Guidelines: Banks follow RBI’s education loan policies, requiring affidavits for verification
  4. Banking Regulation Act, 1949: Governs loan agreements and documentation

For legal references, visit the Reserve Bank of India or State Bank of India.

Video guide on drafting an education loan affidavit in India (placeholder)

Essential Components of a Valid Education Loan Affidavit

Every education loan affidavit must include:

Key components of an education loan affidavit
Essential elements every affidavit must contain
  1. Personal Details: Full name, age, address, and contact information of the affiant
  2. Loan Details: Loan amount, bank/NBFC name, and loan sanction date
  3. Course Details: Name of institution, course, and duration
  4. Purpose Declaration: Statement confirming funds will be used for education
  5. Repayment Commitment: Agreement to repay the loan as per terms
  6. Notarization: Stamp and signature from a licensed notary

10 Expert Tips for Drafting Your Education Loan Affidavit

Follow these tips to create an effective affidavit:

Tips for drafting an education loan affidavit
Professional tips for a strong affidavit
  1. Use Bank Formats: Follow templates provided by the bank or NBFC
  2. Be Specific: Clearly state the loan amount, course, and institution
  3. Attach Proofs: Include admission letters, fee structures, or loan sanction letters
  4. Use Formal Language: Maintain a professional tone
  5. Verify Details: Double-check names, loan amounts, and dates
  6. Notarize Promptly: Schedule notarization within days of drafting
  7. Prepare Copies: Create 2-3 notarized copies for bank and personal records
  8. Submit Timely: Meet bank or scholarship deadlines
  9. Consult Bank: Confirm specific affidavit requirements with the loan officer
  10. Keep Records: Save digital and physical copies of the affidavit

Common Mistakes to Avoid

These errors can lead to affidavit rejection:

  • Vague Purpose: Not clearly stating the educational purpose of the loan
  • Inaccurate Details: Errors in loan amount, course, or personal information
  • Missing Documents: Not attaching required proofs like admission letters
  • Improper Notarization: Lacking notary stamp or signature
  • Delayed Submission: Missing bank or scholarship deadlines

Frequently Asked Questions

What is an education loan affidavit?

It’s a sworn statement declaring the intent to use loan funds for educational purposes and committing to repayment, required by banks or NBFCs in India.

When is an education loan affidavit required?

It’s needed for loan approval by banks, NBFCs, or scholarship providers to verify fund usage and repayment commitment.

How much does notarizing an education loan affidavit cost?

Notarization costs in India typically range from ₹100 to ₹500, depending on the notary and location.

What documents support an education loan affidavit?

Supporting documents include:

  • Aadhaar Card or other ID proof
  • Address proof
  • Admission letter from the institution
  • Fee structure or loan sanction letter
How long does it take to prepare an education loan affidavit?

Drafting and notarizing an education loan affidavit typically takes 1-3 days, depending on document preparation and notary availability.

Conclusion

A well-drafted education loan affidavit is essential for securing loan approval and ensuring compliance with bank or scholarship requirements in India. Use our free template and follow this guide to create a legally valid document. For personalized assistance, contact our legal experts or download our free template below.

Free education loan affidavit template download
Download our free, bank-approved affidavit template