Going international to pursue education is the end goal for many aspiring students. Higher studies abroad can be a game changer for the career of many students still studying in school. However, the decision to go abroad is quite cumbersome considering the whopping financial commitment to it. Hence, it’s advised to arrange funds through bank borrowings for a comfortable journey abroad. Funding partially through own resources and then from education loans can be extremely wise to do. Through this blog, we will look at the best offers you can consider for taking an education loan. The underlying subjects related to education loan will also be focused upon like a brief process, eligibility or top education loan providers.
What is the eligibility criteria for education loan in India?
The first and foremost thing is to check whether you are eligible to apply for an education loan or not. Below provided is the usual criteria which Indian banks follow for checking the eligibility of the loan applicant is:
- The applicant should be a citizen of India.
- The applicant must have attained the age of 18 else his/her parents will have to take the loan.
- The applicant must have a good academic background.
- The applicant must have secured admission at a recognized foreign university/institution/college.
- The desired course which the applicant is going to study must be a technical or professional one, as banks give preference to job oriented courses.
Documents required for applying for an education loan
Before applying for an education loan, the applicant must be completely aware of the documents required to apply for a student loan. Following documents are required to apply for an education loan:
- Filled application form
- Photographs: Passport size photographs of the applicant and the co-applicant.
- Photo ID: Photo ID of the applicant and the co-applicant. It can be a PAN card, driving license, Voter ID card, Aadhar card, or Passport.
- Residence proof: Resident proof of the applicant and the co-applicant
- Academic documents:
o Mark sheet and certificates of the applicant
o Mark sheet (Score Report) of GRE, GMAT, TOEFL, IELTS, etc. whichever is applicable
- Admission proof: Admission letter shared by the university or college.
- Bank statements: Last six months bank statements of the co-applicant
- Income proof: Income proof of the co-applicant
- In case of collateral (immovable property), it can be flat, home, or non-agriculture land the following documents are required:
o Property title deed
o Building approved plan
o NOC for a mortgage from builder or society
NOTE: These requirements can vary as per the banks own regulations.
Loan Application Process
From loan application to approval and disbursement, the entire loan process is time taking, so it is always advisable to apply to for loan a little early. Follow these steps for applying for a student loan:
- Check the course which you are going to study is recognized by the banks or not.
- Figure out how much loan amount you require and how much you are going to arrange on your own.
- Compare the student loan provided by different banks for studying abroad and go for the one which caters best to your needs.
- After finalizing the bank and the loan amount, fill out the loan application form and approach your bank.
- As soon as your loan is approved, the bank will issue a loan document that includes various elements of the loan.
After signing the loan document, the bank will disburse the amount in installments or as asked by the university.