Educational loans – Eligibility, Required documents, Interest Rates

No deserving students should be stopped to pursue their dreams due to lack of money. One who has the desire to study should not be away from the studies just merely because of lack of financial support. In India day by day education is becoming costlier. There are number of students who depends on educational loan for their higher studies and study in abroad. The sole objective of educational loan is to give the financial support to those who cannot afford the higher studies.

Eligibility for Educational loans:

Generally all the banks consider some eligibility criteria for educational loans which is as follows:

• Student should be an Indian national
• He/she should be of the age group 16 to 35-40 years
• He/she should be pursuing a graduation/ post-graduation.
• Should have a confirmed admission from a college or institution which has been recognized by UGC/Govt./AICTE.
• He/she should have a Co-applicant: A co-applicant is mandatory for all full time programs. Co-applicant could be Parent/ Guardian or Spouse (if married) / Parent-in-law.
• Collateral security is required for the loans crossing certain limits which may vary from bank to bank.

Coverage:  Following are covered by educational loan

• Tuition Fees payable
• Complete accommodation charges
• Exams Fees
• Any auxiliary academic fees
• Fees for books, library and any lab.
• Travelling expenses (For study in Abroad)
• Other expenses associated with studies.

Disbursement of loan:

Generally banks take up to 15 days to process the loan application if it is complete in all respects. Otherwise it may be up to 1 month also.

Maximum amount

Maximum amount of loan varies from bank to bank.

Documents required:

• Duly filled loan application form along with photographs
• Acknowledgement of admission into the institution
• Statement showing the details of the cost of education having the break up for each part.
• Duly filled KYC form
• Marks cards and certificates of Secondary and senior secondary along with the degree courses if any.
• AADHAR and PAN card of the students and parents/guardian.
• Proof of residence & proof of address
• Bank statement of co applicant / guarantor
• Proof of income of the guarantor
• Any form of communication from the institution/college mentioning about educational loan.

Interest Rates:

Interest rate vary from bank to bank

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