Nowadays, more and more private as well as government banks are providing various sorts of education loan in India. In this article, you will get to know about the eligibility criteria and the step-by-step method to apply for an education loan.
Are you wondering how to fund your own education? With lots of banks offering different kinds of education loans in India, pursuing higher studies within the country or even abroad has become much easier and affordable these days. Here are a few important points you must know:
Eligibility criteria for education loan
You must be an Indian by nationality.
You must have secured your admission in a recognized institute by clearing specific entrance exam. If not, you might not be eligible to apply.
You should have a proper proof of admission if you taken admission in India. In case of studies in abroad, the institute you have secured admission in must provide you with an offer letter. To apply for a study loan, you must have one of these two with you.
Generally, educational loan is not sanctioned for part-time, correspondence or distance learning programs. The course you have taken admission in must be a full-time one.
Keep your mark sheets, certificates and all other educational credentials handy as you would need to submit those along with your loan application.
How to apply for an education loan
Typically, all private or government banks need you to follow a common application procedure for providing education or study loan to the students of India. To know the step-by-step method, read on below carefully:
Decide on the amount of loan you need by taking into account both the type of course you are going to pursue and your present financial condition. Your loan amount should cover all your study related costs including fees of hostel, tuition, course material and many more. Make sure that you apply for a minimum amount so that you do not need to pay high interest rates.
Once you are sure of your loan requirement, you should look for a suitable bank to take the loan from. There are lots of banks offering attractive educational loan schemes for aspiring students. It is good to make a comparison of rates of interest as well as loan privileges before making a decision. Once you are done with this, just approach the local branch of your preferred bank, have a discussion with the branch manager, and discover the best possible deal for you.
Now, it is time to produce all your necessary documents to the bank. These include:
– The proof of admission or offer letter provided by the institute you have taken admission in.
– Mark sheets as well as certificates of all the examinations you have already qualified (especially the last one).
– The schedule of expense obtained from the institute you are associated with. It is one of the vital documents you need your education loan to be sanctioned.
– All other documents required. Usually, it would depend upon by the bank you are applying for a loan to.
After submitting your loan application along with all essential documents, you have to wait for a few days. You would be informed by the bank itself once loan is processed. With so many banks providing various types of education loan in India, you would never feel left out. Opt for any one of them per your educational needs and make your dreams come true in no time.
About the Author
Shradha Aggarwal is an Indian freelance writer. She has been writing about several courses, coaching centers, distance learning, scholarships, Placements in India,education loan in India, exams in India, institutions in India like JNU, IIT, ISI etc. for the last 7 years. You can read her articles on different websites and blogs.