Eligibility Criteria for Education Loan - Documents Required

4 mins read1.0L Views 57 Comments
Rahul
Rahul Singha
Study Abroad Expert
Updated on Mar 24, 2022 11:06 IST

Eligibility Criteria for Education Loan

Education Loan: It is the dream of every student to pursue higher education abroad. Picturesque landscapes, state-of-the-art infrastructure, the best education system and a promise of a better lifestyle are some of the factors that draw students from the comfort of their homes to foreign shores. However, all this and more comes with a price. Often the dreams of students to pursue education abroad are dashed by colleges charging high tuition fees and students spending so much more on living costs as compared to India. Scholarship Programmes and similar initiatives by various private and public institutions have made studying abroad possible for limited students who possess the gift of the brain, leaving the majority out.

It is here that Indian public and private banks along with other financial institutions have stepped in to provide Education Loans to students of all calibres to pursue their dream of studying abroad by providing them with financial assistance. However, there is a stringent eligibility criterion that has been laid down by financial institutions and it is very important for students to satisfy them to be eligible for the Education Loan for studying abroad. 

Education Loan Eligibility Guidelines

It is important for students to understand the eligibility guidelines and qualify the same, to be able to apply to their preferred money lending institution/bank for their Education Loan. The eligibility criteria vary for different banks. However, some common factors that are taken into account by all money lending institutions (banks) include:

  • The student is required to be a citizen of India.
  • The loan applicant must have attained the age of 18 else his/her parents will have to avail of the loan.
  • The candidate must possess a good academic background.
  • The aspirant must have secured admission to a recognized foreign university/institution/college.
  • The desired course which the applicant is going to undertake must be a technical or professional one, as banks give preference to job oriented courses

You might be interested in these free downloads
Indian Banks offering Education Loans for Studying Abroad: Interest, Eligibility, Documents
Indian Banks offering Education Loans for Studying...6k downloads
Canada Student Visa Guide: Study Permit, Requirements, Fees, Application Process
Canada Student Visa Guide: Study Permit, Requireme...38k downloads
Student Visas for Study Abroad: Requirement, Fees and Application Process
Student Visas for Study Abroad: Requirement, Fees ...14k downloads

Documents Required for Education Loan

While the formalities vary for different banks while applying for an Education Loan, however, there are a set of formalities that are identical across the board, such as documents that you would require to disclose along with your Loan Application Form. The documents primarily include but are not limited to:

Education Loan documents required for Student-applicants:

  • Proof of Identity (either): PAN/ Passport/ Driver’s License/ Voter ID card
  • Proof of Residence/ Address (either): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhaar Card
  • Valid Indian Passport
  • Academic Records: 10th Result and 12th Results
  • Graduation Result: Semester-wise (if applicable)
  • Entrance Exam Result through which admission has been secured including GMAT, GRE, TOEFL, IELTS scores
  • Proof of admission: Offer Letter or Admission Letter from the Institution. A conditional admission letter may be considered in the case of studying abroad.
  • Statement of cost of study/ Schedule of expenses
  • 2 passport-size photographs
  • If any previous loans from other Banks/Lenders, then the Loan A/C statement for the last 1 year

Also, Read

Guide to Student Loans Indian Banks offering Education Loans for Studying Abroad
Top Education Loans Providers in India for Study Abroad Public v/s Private Education Loan Providers

Education Loan documents required from Co-applicants:

  • Proof of Identity (any one): PAN/ Passport/ Driver’s License/ Voter ID card
  • Proof of Residence/ Address (any one): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhaar Card
  • 2 passport-size photographs
  • If any previous loans from other Banks/Lenders, then the Loan A/C statement for the last 1 year

We have also provided the Income Proof documents that would be required from the Co-applicant as part of the Education Loan process. 

Documents required for Income Proof for Salaried Co-applicant/ Guarantor:

  • Salary Slip or Salary Certificate of last 3 months
  • Copy of Form 16 for the last 2 years or a copy of IT Returns for the last 2 financial years, acknowledged by IT Dept.
  • Bank account statement for the last 6 months (of Salary Account)

                                            OR

Documents required for Income Proof for Self-employed Co-applicant/ Guarantor:

  • Business address proof (If applicable)
  • IT returns for the last 2 years (if IT payee)
  • TDS Certificate (Form 16A, if applicable)
  • Certificate of qualification (for C.A. / Doctor and other professionals)
  • Bank account statement for last 6 months

Related Reads

Steps to filing an Education Loan Form Education Loan Vs. Self-Funding to Study Abroad
Top 5 Mistakes International Students Make While Applying for Student Loans Financial Documents Required for Study Abroad Applications 

Students are informed that from loan application to approval and disbursement, the entire loan process is time taking, so it is always advisable to apply for an Education Loan months in advance to avoid any last-minute complications. Students who have applied for an education loan from a nationalized bank are required to start the repayment process after the completion of the moratorium period (Repayment commences one year after the course completion or 6 months after securing a job, whichever is earlier). However, students should understand the moratorium time varies for different loan providing institutions. Read: SBI Education Loan for Study Abroad: Ultimate Guide

Education Loans for Popular Countries Abroad

Education Loan to Study in the USA

Education Loan for Studying in Canada

Education Loan to Study in the UK

Education Loan for Studying in Australia

Education Loan for Studying in Germany

Education Loan for Studying in Singapore

Applying for a loan to study in New Zealand

Education Loan for studying in Ireland

Education Loan for studying in Sweden

Education Loan for Studying in France

Education Loan for Studying in the Netherlands

 

Contact India’s leading education loan providers through Shiksha Study Abroad For more queries. Do write to us in the comments below. Or request a call back from our Shiksha Study Abroad Counselling Services

About the Author
Rahul Singha
Study Abroad Expert

With over 8 years of experience in overseas education, Rahul Singha has been previously associated with prominent education houses. He is also responsible for keeping a sharp eye on education policies of major study... Read Full Bio

Comments

(57)

Hello sir am Kato sebunya Emmanuel a Ugandan student I want to study in Italy MBBS what can I do maybe to get a scholarship there

Reply to emmanuel sebunya kato

R

Rahul SinghaStudy Abroad Expert

31/01/22

Hello Emmanuel. You should check out popular MBBS universities in Italy. You can check out our MBBS guide here: https://studyabroad.shiksha.com/study-mbbs-abroad-eligibility-colleges-fees-exams-jobs-articlepage-2551 and check out scholarships here: https://studyabroad.shiksha.com/scholarships

I want to get Bank loan for the abroad study so plz suggest me how I fill the tuition fees of University.

Reply to kender kumar

R

Rahul SinghaStudy Abroad Expert

01/10/21

Hello Kender. You can apply for an education loan to take care of your university expenses as well as living costs. Kindly contact a bank closest to you to know more about the details on education loans. You can also visit: https://studyabroad.shiksha.com/apply-education-loan

r

ranveer

25/08/21

Hello sir, I want to study MBBS in Australia or UK. Can I get a 50 to 100% loan from any bank?

Reply to ranveer

R

Rahul SinghaStudy Abroad Expert

26/08/21

Hello Ranveer. Most banks provide education loans for students wanting to study abroad. However, you would have to get in touch with the banks to understand the process of obtaining an Education Loan and complete the application that entails.

Hello sir
I want to do masters in london university but financially we are not settled , can I get educational without any land documents kindly give your piece of advice sir .

Reply to marapalli vamshi

R

Rahul SinghaStudy Abroad Expert

01/06/21

Hello Marapalli. The right person to ask this would be the bank you are planning to take an education loan from. They will be able to give you other alternatives to availing of an education loan.

S

Sumesh

27/05/21

Hi
Like many others , it’s difficult to trust such posts as there are many only to tempting and fall prey to unless u experience its worthiness !! Kindly advice if u can really help or guide regarding education loan other than what all I read above in the blog as that was very generic .
reply pls

Reply to Sumesh

R

Rahul SinghaStudy Abroad Expert

28/05/21

Hello Sumesh. As we have clearly stated in the article above. The article talks about the general requirements for applying for an education loan. We do not provide an education loan. Candidates are required to approach a financial institution preferably a bank to avail of an education loan to st...Hello Sumesh. As we have clearly stated in the article above. The article talks about the general requirements for applying for an education loan. We do not provide an education loan. Candidates are required to approach a financial institution preferably a bank to avail of an education loan to study abroad. You can apply to reputed banks by visiting: https://studyabroad.shiksha.com/apply-education-loan

We use cookies to improve your experience. By continuing to browse the site, you agree to our Privacy Policy and Cookie Policy.