As the cost of education is on the rise every year, the viability of education loans is seemingly becoming more important.
Here are the steps describing how to get a student loan to finance your higher education –
Check your eligibility
Although eligibility varies among different financial institutions, these are some basic prerequisite for most of them –
- Applicants must be an Indian citizen.
- An authoritative body must recognise the university/college as a competent establishment.
- Applicants must have cleared their secondary examinations.
The financial institution can also ask for these documents for verifications –
- Admission letter issued by the educational establishment.
- Fee structure of the institute.
- Mark sheets for classes X, XII.
- Graduation marksheet if applicable.
Conditions for co-applicant
Applicants must have a co-applicant, who also has to provide –
- Proof of income, such as pay-slips.
- Income tax return files.
Requirements to avail the loan
- A third party-guarantor is required for loans between Rs.4-Rs.7.5 lakh.
- Collateral if the loan amount exceeds Rs.7.5lakh.
How to apply?
Offline application –
- Fill out the application form.
- Fix an appointment with officials from the financial institution. Discuss interest rates, repayment tenor and other necessary conditions.
- Provide necessary documents.
Online application –
- Visit the financial institution’s website and fill-up the form.
- Wait for a representative to reach out to you.
Although an educational loan enables you to study in some of the best colleges in the world, it only covers the tuition expenses. Alternatively, you can avail a loan against property for education to finance any miscellaneous cost you have outside of your studies.