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Education Loan
Summary: Several lending institutions offer education loans in India to help students pursue their dream courses without worrying about funding. Here’s a complete guide to the education loan process and how you can apply for one.
With Indian banks and non-banking financial companies (NBFCs) offering hassle-free education loans, it has become easier for students to pursue their dream careers. Studying abroad has also become more affordable, thanks to a simple education loan process. According to data from the Ministry of Finance, in the last ten years, more than 4.60 lakh students in India have availed of education loans for studying overseas.
This article is meant for those who are looking to apply for an education loan to pursue higher studies. It offers a complete guide to the education loan process in India. It has tried to cover all crucial verticals, including education loan eligibility, the documents required, and how to apply.
Also read - Education loan eligibility for students: Challenges and solutions
Before applying for an education loan, it is crucial to understand the study loan process thoroughly. Here are the steps involved -
Make sure you are eligible to apply for an education loan
The first step of the education loan process is to evaluate the education loan eligibility criteria. Different lending institutions have different eligibility requirements -
Education loans are usually given only to Indian nationals. Non-Resident Indians (NRIs) too can avail of education loans in India if they hold a valid Indian passport.
The age of the applicant also plays a crucial role in determining their education loan eligibility. Usually, lenders provide education loans to students aged between 18-35.
Since education loans are taken by students, they are the primary applicants. However, parents or guardians can become co-applicants. Including parents as co-applicants improves one’s chances of getting approval for an education loan application.
Education loans are granted for pursuing a wide array of courses, including postgraduate, undergraduate, and diploma programmes. However, they should be affiliated with the Government of India.
Those seeking admission to a well-reputed university or college may find it easier to get an education loan in India. They can also secure the best education loan interest rates.
The academic performance of a student also determines their education loan eligibility. Lenders usually ask for a minimum percentage or grade in qualifying examinations. For example, you may have to secure at least 60% in your Board examinations if you wish to avail of an education loan for an undergraduate program.
Apart from the points mentioned above, the lender may also ask for certain other documents before the education loan application is approved.
The second step of the education loan process is assembling the required documents. Lenders ask for these documents to confirm your education loan eligibility and complete other technical formalities.
Please note that this list is indicative. A lender may ask for additional documents at the time of loan processing.
Several lending institutions provide education loans in India. But you need to select the right one as per your requirements. Research different lending options and compare their education loan offerings based on factors such as interest rate, repayment terms, eligibility criteria, disbursal process, and customer services.
For instance, you can apply for a student loan with IDFC FIRST Bank, one of the most reputable banks in India. The bank sanctions loans quickly through a seamless online education loan process.
The next step in the education loan process is determining how much money you will need and applying for that amount with a chosen lender. You can apply for an education loan offline or online by filling out an application.
Banks can finance up to 100% of your course expenses, depending on the loan amount required.
With an IDFC FIRST Bank Education Loan, you can get collateral-free financing of up to Rs 50 lakhs*. Make sure to assess your requirements carefully and apply for an appropriate loan amount.
After the lender receives your loan application and the required documents, a verification process will be initiated. This may take a few days or even up to a month. The bank may call you for a round of personal discussions to analyse why you need an education loan and how you plan to repay it. A bank employee may also visit your place of residence to complete the verification process.
After the verification process is completed, the lender will inform you whether your education loan application is approved. If everything goes well, you can get a quick approval. Just make sure that you have submitted all the required documents and have entered all details in your loan application form correctly.
Now that you know how to get an education loan, go ahead and avail of funding for your dream course. With an IDFC FIRST Bank Education Loan, you can give your career wings with financing of up to Rs 1 Cr* at highly competitive interest rates. Click here for more details.
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.