Education Loans In India: Education loans, also known as student loans, are advances made to students by banks or other financial institutions to help them cover the costs of their higher education. These loans allow students to attend universities in India and abroad. In India, several banks offer education loans at good rates. Education loans cover most expenses, such as tuition fees, hostel expenses, exam fees, library fees, laboratory fees (if applicable), refundable caution deposits paid to the educational institute, the cost of books, uniforms, and other essentials required for completing the course, and travel expenses, including the cost of return airfare for international flights.
How To Apply For An Education Loan?
The steps to apply for an education loan may vary from bank to bank, but there are some common steps which most banks follow:
Step 1: Select a Bank
Select a bank which offers education loans. Many banks in India, such as the State Bank of India, Bank of Baroda, and Canara Bank, provide student loans for higher education.
Step 2: Check Eligibility Criteria
After selecting the bank, check the eligibility criteria for the education loan. Most banks have common eligibility criteria for student loans that include the minimum percentage of marks required in the previous examination, the course of study, and the institute in which the student plans to study.
Step 3: Fill Out the Application Form
Fill out the student loan application form carefully. Application forms will be available from the bank’s website or at the bank branch. It is advised to fill out the form accurately.
Step 4: Application Processing
After submitting the application form, wait for the bank to process your application and approve or reject the loan. The concerned bank will conduct a thorough check of the guarantor’s credit history and may also verify your academic records. If everything is in order, the bank will approve the loan.
Step 5: Distribution of the Education Loan
Once all the paperwork is completed, the bank will pay the programme fee directly to the concerned institute. The bank may also provide additional funds for other approved expenses like books, living costs, etc.
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Documents Required For An Education Loan
The documents required for an education loan are given below:
- Admission Letter from the Educational Institution
- Previous Marksheets
- Age Proof
- ID Proof
- Address Proof
- Signature Proof
- Salary Slips
- Latest Bank Statements
- ITR With The Income Computation
- Audited Balance Sheet
- Proof Of Turnover
- Completed Application Form with Signature
- Latest Passport-Size Photographs
Education Loan Information:
Calculate Education Loan EMI