Education is a right for all. But at times, your finances might become an obstacle in the way of you getting admitted to your dream college/school. However, there are many grants that help you overcome this obstacle. Education loans, or student loans, are advances made by financial institutions to help students bridge the barrier of their financial background and get admission into the course of their choice. The talented students of the country with good educational qualifications are granted financial assistance to study I prominent institutes both in India and abroad. Many Indian banks provide such loans to qualified applicants at a low-interest rate along with flexible terms and conditions. Along with all these perks, the documentation process for these loans is made easy and simple so that students can receive their loans funds in a timely manner.
Since these are the loans funding education, one of the most important qualifications for being eligible for these loans is having a good mark sheet. Apart from these, the following are the various criteria banks look at before giving you the loan
- The candidate must be a citizen of India.
- They must have passed their high schooling from any recognized educational institutes in India or abroad.
- The candidate must be 18-35 years during loan application.
- They must be undergoing a graduate/postgraduate degree or a PG diploma.
- They should have secured admission in a university affiliated by UGC/AICTE/Govt., etc.
- Students who are pursuing full-time courses need to have a co-applicant who can be either a parent/guardian or spouse/parent-in-law.
- Income source of the candidate/guardian should be stable enough to ensure timely repayment of loans.
If you hold the eligibility mentioned above, you will have to start with the application for the loan. For this you will need a list of documents. Following is the list of documents that banks ask for while they process your application
- First and foremost, your duly filled and signed application form with affixed photographs.
- Two passport size photographs
- Copy of marksheets of class 10th/12th or latest educational qualification marksheet
- Statement of your course expenses or in other words, cost of study.
- Aadhar and Pan card of the student and the parent/guardian.
- Age Proof in the form of copy of Aadhar card/voter ID/passport/Driving License.
- Identity proof in the form of Copy of Voter ID/Aadhar Card/Driving License/Passport
- Residence proof in the form of Rental agreement/Bank statement of 6 months of the student or co-borrower/guarantor/Copy of Ration card/Gas Book/Electricity Bill/Telephone Bill
- Income proof can be submitted in the form of following documents:
a. Most recent salary slips or Form 16 of the parent/guardian/co-borrower
b. 6 months bank statement of the borrower or updated passbook of bank.
c. Updated ITR (Income Tax Return with income computation) of 2 years or IT assessment order of last 2 years of parent/co-parent/borrower/guardian.
d. Documents that state the assets and liabilities of the parent/co-borrower/guardian.
Some of the deal-making factors that can assure you of your education loan is granted after you have completed the procedures is the mixture of the following factors
- Academic background of the student.
- The co-borrower’s job profile and their income status.
- The type of collateral that is being provided.
- The rankings, reviews, and reputation of the university where the individual has secured admission.
For more information, you should always consult the bank officials where you have your account, and read more on their website for further details. What we have provided you here is a general outlook on the eligibility and documentation required while applying for an education loan. The specifics may vary from bank to bank. Therefore, research is very important while considering a decision like this. With this, we wish you the very best in your study endeavours.
Who is eligible for education loan?
The candidate requesting the loan must be an Indian citizen. He or she must have received a letter of acceptance from a reputable school, either in India or overseas. When applying for a loan, the candidate’s age must fall between the ages of 18 and 35.
Also Read: All You Need to Know About Loans