Documents Required for Education Loan

Education Loans have become a necessity with the increasing cost of education. Fortunately, several banks and financial institutions offer student loans for Indian and abroad universities. To apply for an education loan, you must follow the set process and fulfil the required eligibility criteria.

You must prove your identity, address, and financial status with key documents. The article below provides details of the documents required for an Education Loan.

Documents required for Education Loans

Submitting the required documents is crucial to having a hassle-free Education Loan application. Also, choosing the bank offering the best education loan that suits your financial needs is essential before applying.

Documents required before Education Loan sanction
 

Here are the documents required for an Education Loan before the sanction.

Educational certificates and admission document

1. Passing certificate or mark sheet of HSC, SSC, Graduation or Post Graduation as applicable

2.  Admission letter copy issued by the institute

3.  Schedule of tuition and other fees issued by the institute

4.  Test score proofs as applicable

Personal identification documents/KYC documents

1. Proof of Identity

Any one of these - Aadhaar card, PAN card, Voter card, Passport, Driving-license or any other government-recognized identity proof.

2. Proof of Address

Any one of these - Voter ID card, utility bills such as water or electricity bills, rent/lease agreements, aadhaar card or passport

Proof of income
 

1. Salaried borrower

i) Employment Proof - Employee ID Card / Employment proof / Salary Certificate for cash salaried cases

ii) Latest 3 month’s salary slips

iii) Last two years' income tax return details

2. Self employed

i) Turn over proof for self-employed and business owners

ii) Last two years' balance sheet of the business

iii) Business ownership proof

iv) Additional documents for rent income or pension income as applicable

Banking documents

1. Latest 6 month’s bank statement or salary credit bank statement is required. This might vary as per the lending institution’s policy

2. Latest 6 months NRE/NRO Bank Statement required in case of NRI applicants

i) A duly filled application form

ii) Two passport-size photographs

Documents required after Education Loan sanction

The following documents are required for an Education Loan after the loan sanction:

1. Payment instructions :
Repayment can be done via Standing Instruction Mandate (SI) or National Automated Clearing House (NACH) mandate registration. For NACH Mandate, post-dated cheques (PDC’s) are required along with security PDC. This might vary as per the lending institution’s policy.

2. Loan agreement :
The loan applicant and the co-applicant need to carefully read and sign the loan agreement

3. University fee demand letter

Documents required after loan disbursement

A few documents are needed after every fraction of loan disbursement. Here is the list of required documents after Education Loan disbursement:

1. Academic progress report of the applicant for previous semesters

2. Payment receipt copy of last semester from the institute

3. Disbursement request letter duly filled by the applicant

4. Visa copy & SWIFT advice copies for overseas education

The bank may also ask for additional documents at its discretion. You must ensure that you have all the documents handy before proceeding with your Education Loan application. It helps ease the application process, saving time and money.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.