10 points checklist for applying Education Loan in India

Every hardworking and bright student’s dream is to get higher education. But rising cost of education and lack of finances are the two big hurdles for achieving their goal of higher education.

Now the numbers of students are increasing who are seeing education loan a best option to achieve their dream.

So education loans come as rescue to fulfill the dream of higher education. Education loans are the investment for building a bright future of students. So you should do proper research and invest some time before choosing bank for education loan.

Some banks and Government also provide subsidy and lower rate of interest to promote education.

We have prepared a checklist to follow all guidelines for planning to apply for education loan.

1. What does education loans cover?

Education loan covers the basic course fee along with other expenses such as hostel fee, exam and other miscellaneous expenses.

2. Who can apply for the loan?

The main applicant is a student. A parent, spouse or sibling can be the co-applicant.

3. What is the amount of loan?

The amount of loan offered to the students studying in India and overseas varies from one bank to another.

4.Whom is the loan offered to?

Education loan is offered to the students for studying in India or overseas for higher education.

5. Which types of courses are covered under the education loan?Full time courses

Part time or vocational courses

For doing graduation and post graduation in various fields like medical, engineering, management, designing, and hotel management etc.

6. Eligibility for applying the loan

1. One must be an Indian citizen and age of student must be 18-35 years during applying for loan.
2. Having secured admission into a college/University recognized by a competent authority in India or abroad.
3. The applicant must have completed his higher secondary level schooling.
4. Admission letter of the Institution

7.Required Documents for education loan

1. Completely filled and signed application form with affixed photographs.
2. 2 photographs of passport size
3. KYC document for age, address and identity proof. Aadhar card and pan card of the student and co applicants.
4. Photocopy of mark sheet of Class x, xii and graduation(if going for post graduation)
5. Fee structure or statement of expenses of chosen course/cost of study.
6. Income proof documents of parents or guardians like salary slips and last 2 years Income tax returns of the parents or guardians.
7. Bank account statement last six months of borrower and parents or guardians.
8. If collateral is required, then document of immovable property and fixed deposits
9. Signature proof
10. If you have received any scholarship, copy of scholarship letter is needed.

8. Following documents, you have to submit for age proof and identity proof.

Copy of aadhaar card/voter ID/passport/driving license

9. For residence proof :-

Rental agreement/copy of ration card/gas book/electricity bill/telephone bill/bank statement of the student or co-borrower