Education loans, also referred to as student loans are advances made by banks or financial institutions to assist students in paying for their higher education costs. Under this special loan scheme, the country's talented students with strong educational qualifications are given financial aid to study in prestigious institutes in India and overseas. Many Indian banks offer such loans at low-interest rates and flexible terms and conditions to qualified applicants. Additionally, the documentation process is maintained to a bare minimum so that students can obtain their loan cash as soon as possible.
As education loans are for students who cannot afford to pay for their higher education, their academic performance determines applicants' eligibility, as evidenced by preceding exam mark sheets. The following are the important education loan eligibility criteria that candidates must meet to be approved for the loan:
- The applicant must be a resident of India to be considered for the loan.
- They must have received confirmation of acceptance into a recognized educational institute in India or overseas.
- The candidate's age must be between 18 and 35 years old during the loan application.
- They must be studying for a graduate or postgraduate degree or a postgraduate diploma.
- The candidate must have been accepted into a college or university with which they are linked.
- Full-time students must have a co-applicant, who can be a parent or guardian or a spouse or parent-in-law (in the case of married candidates).
Documentation for Student Loans
As previously stated, there is no hard-core paperwork involved with college loan documentation. The procedure is straightforward and can be completed without visiting a bank. The method, however, may differ depending on the requirements established by various banks or lending organizations. Furthermore, because of the banks' rigorous requirements, failure to present the required documentation will result in rejection, so be careful. Before applying for an educational loan, you should know about India's education loan interest rate.
Documents Required for educational loan.
The following is the documentation that a student must submit to a bank when applying for a student loan:
- The application form that has been filled out and signed, as well as images that have been affixed
- Two passport-size pictures
- Copy of 10th/12th-grade exam results or most recent educational certificate
- Statement of course costs/study costs
- Student's Aadhaar and Pan Cards, as well as Parent/Aadhaar Guardian's and Pan Cards
What can you do to increase your chances of getting a student loan?
To ensure that monetary aid reaches deserving students, banks carefully examine candidates' eligibility. The student's general academic excellence, intended education path, and current admission status are all factors discussed before awarding a loan. As a result, focusing on the following areas will help you qualify for an education loan:
- Getting good scores and a good ranking on the qualifying examinations
- Having a strong academic record
- Getting into a prestigious/top-tier institute or university
- Parents/guardians/co-borrowers must have a strong financial history.
- Possessing promising employment/income possibilities in the future