Higher Education Loan

Education loan is an advance fund to a student what they use for the purpose of financing a college or vocational education. There are few documents, which are required by most of the organization who provides education loan.

1. Entrance Loan

Loan application form
Health Insurance certificate
Resident's card

2. Enrollment Loan

Loan application form
Health Insurance form
Resident's card

Want an Educational Loan ? he conditions to get an education loan are in fact fairly straightforward and basic. The first one is that you must be a citizen of India .You should have already got admission. Once you secure admission to the course you wish to pursue, you are free to approach a bank to avail of funding. Here are a few questions you must ask when looking for an education loan.

1. How much loan will I get?

Whenever you take a loan, the bank will not fund the entire amount of your education. You will be expected to fund a part of it. If the loan amount is not too large, the bank may offer to fund the entire amount. But generally bank does keep some margin amount.

2. Is their any processing fees?

Some banks may charge a processing fee, others may not. If they do, check whether it is a fixed amount or a percentage of the loan amount.

3. What is covered under the loan?

The cost of education is not just your tuition fee. It also includes the traveling expenses boarding and logging expenses. It may also help you buy books computers etc. It would be advisable that you first make the list of expenses and then apply for loan.

4. Do I have to provide any security?

This all varies on the loan amount. Usually, if the loan amount is upto Rs 4,00,000, you will not have to make available any security. If it is more than that, you will have to.

5. Is guarantor required?

Yes, the justification behind having a guarantor is that it puts a moral obligation on the individual taking the loan to repay it. Should you default for whatever reason, the guarantor will have a legal obligation to pay up.

6. When do I start repaying the loan?

As long as you are studying, you will not have to worry about repaying the loan. This starts only once the course for which you have taken the loan is over or once you start working. A number of banks may ask for repayment six months after the course is completed while others put it at a year.

7. What would be the repayment period?

Usually, you will get up to a maximum number of 10 years to repay the loan.

8. Documents required?

This will vary depending on the bank in question. When you are given the education loan application form, you will also be given a list of the documents you need to give the bank.

Some of the documents are:

You will have to give proof that you have been selected for the course and the schedule of fees.
The mark sheet of the last qualifying examination will also have to be produced.
Keep a couple of photographs ready.
Address Proof
Last three years of income proof or IT return of co-applicant.

9. Is my course eligible for a loan?

All graduation, post-graduation and professional courses are eligible for a loan but generally banks prefer that the courses are recognized by the law.