Overview

“Education loans, often known as student loans, are advances granted by banks or financial institutions to help students pay for their higher education expenses. The talented students of the country with good educational qualifications are granted financial assistance to study in prominent institutes in India and abroad under this special loan scheme.”

Education Loan Eligibility

As these loans are available to students who are unable to cover the costs of their higher education, applicants' eligibility is determined by their academic performance as shown in prior exam mark sheets.

The vital education loan eligibility criteria that the candidates need to fulfil to get approval for the loan are listed out here:

• The candidate applying for the loan must be a resident of India.
• He/she must have confirmed admission in recognised educational institutes in India or abroad.
• The age of the candidate must fall within the bracket of 18 to 35 years during loan application.
• He/she must be undergoing a graduate/postgraduate degree or a PG diploma.
• The applicant should have a secured admission in a college or university affiliated by University Grants Commission (UGC)/All India Council for Technical Education (AICTE)/Govt. etc.
• Students pursuing full-time courses need to have a co-applicant who can be either parent/guardian or spouse/parent-in-law (in case of married candidates).

Education Loan Documentation

As told earlier, education loan documentation doesn’t involve any hard-core paperwork. The process is simple and can be conducted online without paying physical visits to the banks. However, the process might vary depending on the criteria set by various banks or lending organisations. Also, the banks being very strict in their terms, failure to submit the mandated documents will lead to rejection:

Required Documents

Here are the mandatory documents that a student needs to provide to the banks while applying for a student loan:

• Duly filled and signed application form with affixed photographs
• 2 photographs of passport size
• Copy of exam mark sheets of 10th/12th or latest education certificate
• Statement of course expenses/cost of study
• Aadhaar Card and Pan Card of the student and Parent/ Guardian

1.Age proof Copy of Aadhaar Card /Voter ID/Passport/Driving Licence

2.Identity proof Copy of Voter ID/Aadhaar Card/Driving Licence/Passport

3.Residence proof Rental agreement/Bank statement of 6 months of the student or co-borrower/guarantor/Copy of Ration card/Gas Book/Electricity Bill/Tel Bill

4.Income proof

• Most recent salary slips or Form 16 of the parent/ guardian/co-borrower
• 6 months bank statement of the borrower or updated passbook of bank
• Updated ITR (Income Tax Return with income computation) of 2 years or IT assessment order of last 2 years of parent/co-borrower/guardian
• Documents stating the assets and liabilities of the parent/co-borrower/guardian