Education Loan or we can also say Student loan provided by banking organizations or financial organizations for purpose of meeting higher education expenses of the students. Under this Loan scheme, the merit students of the country who are having the best educational qualifications are provided financial help to study in top institutes, colleges or universities in the current living country and in abroad.
Many Indian banks are providing loans to the students who are deserved. With flexible terms and conditions at the lowest interest rate loans are offering. The documentation process is kept minimal to enable the students to get the loan amount within a quick span without much complexity. In this posting, you can find the details about educational loans.
Education Loan Eligibility
Students who are brilliants and cannot meet the expenses of their higher education. The basic and initial eligibility for the educational loan is academic excellence, awards, and achievements of the students. And on the basis of the academic performance in the certifications and mark lists of before exams also banks provides an educational loan. In these ways, eligibility is assessed.
|Nationality||Must be an Indian|
|Limit of Age||Minimum of 18 Years and Maximum of 35 years|
|Record of Academics||Must be proven good|
|Qualification||Pursuing Graduation, P.G., or a PG Diploma|
|Source of Income||Parents or Guardians|
|Applied University||In India or in Abroad but should be recognized|
|Status of Admission||Confirmed|
|Security||Guarantor- depends on the loan amount and source of income|
Also see – Fee Reimbursement Scheme Details – Initialization, Motto, Eligibility, etc.
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 organizations. Also, the banks being very strict in their terms, failure to submit the mandated documents will lead to rejection:
The below are the needed documents to submit to the bank to receive Education loan.
- Filled bank educational loan application form with attached photographs.
- Have to submit 2 passport size photographs.
- Mark sheets copy of 10th or 12th or recent educational certificate.
- Documentation of cost of study or course expenses.
- Pan card and Aadhaar card of the respective student and parent or guardian.
In addition to above documents, students need to submit the documents of proof as follows.
- Proof of Age: Need to submit a Copy of birth certificate or Aadhaar Card or Voter ID or Passport or Driving License.
- Identity proof: Copy of Voter ID or Aadhaar Card or Driving License or Passport.
- Residence proof: Rental agreement or Bank statement of 6 months of the student or co-borrower or guarantor or Copy of Ration card or Gas Book or Electricity Bill or Telephone Bill.
- Income proof: Have to submit most recent salary slips or Form 16 of the parent or guardian or co-borrower.
- Documents of assets and liabilities of the parent or co-borrower or guardian.
- The updated passbook of bank or 6 months bank statement of the borrower
- The updated documents or statements of ITR (Income Tax Return with income computation) of 2 years or IT assessment order of last 2 years of parent/co-borrower/guardian.
The above is the list of documents of proofs need to submit by the education loan borrower.
To Improve Your Eligibility for an Education loan the following to be followed:
Banks are very strict in examining and assessing the eligibility of the candidates. The complete academic excellence of the students, their further course of education and status of current admission are the basic things that evaluated before giving a loan approval. Working in the following areas will improve your eligibility for an education loan:
- Securing the best percentage of marks in academics.
- Showcasing good academic records.
- Gaining top ranks and qualifying in exams.
- Got admission in top-rated college or university.
- Trusted financial background of parents or guardians or co-borrowers.
- For future employment/income generation, have to showcase good prospects.
How to Know Your Eligibility for an Education Loan?
Many of the members need financial help for their children higher studies. To receive education loan one needs to eligible for receiving education loan. Have to submit the documents of proofs and all. There is a process for this loan. As we know that many members need loan. But only some are eligible to have the loan. Some of the people they do not know that they are eligible or not. To know that you are having eligibility for the education loan you need to follow the below procedure. Based on this data, results for suitable education loan offers are displayed in an easy-to-compare manner.
check the official banking sites and check for the education loan according to their interest rates, rules, and regulations. If you are eligible for the education loan you can go for the further process which is useful for you or for your children’s higher educational purpose.