The university and college admission season has started. While some students are joining engineering and medical institutions, others are fulfilling their aspirations of studying abroad. We are all aware of the high costs of higher education nowadays and many meritorious students often have to back out of their preferred courses or universities as their households cannot afford the fees. This is where the facilities of education loans come in. Once students pass the entrance exams for institutions in India and abroad, the next steps involve counselling and paying the fees. At this stage, admission fees and other costs can become significant challenges. Taking out an education loan is a viable solution, but having precise and accurate information about it is crucial. Let us explore the process of obtaining an education loan.
Eligibility for Education Loan
If you want to take an education loan for higher studies, then you should have a confirmed admission to an institute and a good academic record. The course in which you have taken admission should be job-oriented, doctoral course, PhD or diploma etc. Some criteria for education loans are as follows-
The applicant must be an Indian citizen.
If the applicant for an education loan is below 18 years of age, then the application has to be made by his/her parents.
The applicant must have a good academic record.
Must have been admitted to a reputed university or college.
The course chosen by the applicant should be technical/professional or job-oriented. Most banks give preference to those courses which can prepare the students for employment.
The applicant must have a co-applicant who can be a parent, guardian, spouse or in-laws (in the case of married candidates). The co-applicant must have a stable source of income.
Eligibility for Education Loan
If you want to take an education loan for higher studies, then you should have a confirmed admission to an institute and a good academic record. The course in which you have taken admission should be job-oriented, doctoral course, PhD or diploma etc. Some criteria for education loans are as follows-
- The applicant must be an Indian citizen.
- If the applicant for an education loan is below 18 years of age, then the application has to be made by his/her parents.
- The applicant must have a good academic record.
- Must have been admitted to a reputed university or college.
- The course chosen by the applicant should be technical/professional or job-oriented. Most banks give preference to those courses which can prepare the students for employment.
- The applicant must have a co-applicant who can be a parent, guardian, spouse or in-laws (in the case of married candidates). The co-applicant must have a stable source of income.
Documents required for education loan
– Proof of identity – PAN/Passport/Driving License/Voter ID card etc.
– Residence certificate (any of the copies of the telephone bill, electricity bill, water bill, piped gas bill etc.)
– Income certificate
– Valid Indian passport (if studying abroad)
– Educational records
– Result of the entrance examination through which admission is to be taken
– Proof of admission
– Statement of cost of study/expenditure list
– 2 passport-size photographs
How to apply
Many banks and institutions in the country provide education loans. First of all, go to these banks and institutions or visit their website and gather information about the interest rate, loan repayment terms etc. Choose the best among them. After selecting a bank or institution for an education loan, it is time to fill out the application form. The application form will be available on the lender’s website. According to the Finance Ministry of the Government of India, applications for education loans are to be made through the Vidya Lakshmi portal www.vidyalakshmi.co.in.
Banks may summon you for an interview. During this, basic questions are asked about academic performance, course and the institute where the study is to be done and the job and salary after the studies etc. Based on the information given by the applicant, the bank decides whether to give the education loan or not.
The bank can approve the education loan after verifying all the information. In this, one of the applicant’s parents/guardians is made the guarantor. The credit score of the guarantor is also checked. Apart from this, the applicant has to give a promissory note and also sign an assurance letter. The bank does all this as a guarantee of repaying the loan within the stipulated period.
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