There are many students in India who are financially weak but have the potential to do something. These students can avail student loan in India for further studies. A student loan can be availed to study in India or abroad. Almost all banks provide education loans.
Student Loan Process In India
Fill In The Loan Application Form
Same as every loan, an applicant has to fill the required information in an application form. They have to fill details related to academics, contact details etc. You have to provide accurate information.
Personal Discussion
After filling the application form, there will a round of personal discussion. The officials ask many questions related to academics. Here they overview that can you repay the loan or not? So some of the banks give it lesser attention and some prefer it.
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Provide Validated Supporting Documents
Documents relating to admissions are mandatory in case of education loans. Banks verify the enrollment of the students for their student loan in India. If the loan amount is above Rs. 4 lakhs one may also require collateral security.
Stage Of Loan Approval Or Denial
A guarantor is mandatory for an education loan. Applicant’s parents or guardians can be the guarantor. Banks check the guarantor before sanctioning the loan. After the complete checks, the loan may be sanctioned or denied.
Disbursal Of The Loan
After the completion of formalities and the signed post-dated cheques, the bank will disburse the loan. Therefore the college/institute of the applicant directly got their fee.
Details Of Education Loan
| Interest Rate For Education Loan | 12% To 17% Floating |
| Processing Fees | NA |
| Education Loan Tenure | 1 Year To 10 Years |
| Loan Amount | Up To 100% Of Educational Expenses |
| Pre-Closure Charges | NA |
| Guarantor Requirement | Yes |
Education Loan Eligibility
- Applicant must be an Indian resident
- Applicant should have secured admission in a recognized institute
- The student must provide collateral
- If the applicant is NRI then he/she must hold an Indian passport
This above eligibility is a basic requirement, so banks may request for more proof or documentation
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Documentation Required
- Loan application form
- ID and address proof
- Passport sized photographs of the guarantor, applicant etc.
- Proof of income
- Six months bank statement
- Details of collateral security
Therefore education loan is popular as student loan in India. If you are willing to study more but don’t have enough fund for this purpose, then you should go for a student loan. With the help of this loan, you can study in India as well as abroad. Presently education is too expensive and most of the families don’t have enough money to educate their children in better universities. So student loan is the best option for them.
