Steps to filling an Education Loan Form

2 mins read15.0K Views 4 Comments
Piyush
Piyush Kohli
Study Abroad Expert
Updated on Apr 8, 2020 13:31 IST

Ever since the concept of the educational loans came into existence, pursuing ambitions have never been easier. So, if you're considering to study abroad don't hold yourself back due to lack of money.

All the students who wish to pursue their ambitions will have the privilege of the increased educational loan portfolio by Commercial banks. The loans can be repaid in the form of equated monthly instalments or EMIs which begins from one year after the course of six months after obtaining a job. The tenure can be anything from 3 to 8 years.

Here are steps to follow for filling out a loan application form -

STEP 1. Check the recognition of the course or institute by the bank

Many international courses and colleges are not recognized by Indian banks for loans. That means you may not get a loan if your choice of course or college fall in that category. Check for such a list at all banks you plan to apply for a loan.

STEP 2. Find out the amount of loan required
Roughly estimate the expenditure. Discuss with the family on what amount is affordable and what amount is required to take a loan.

STEP 3. Search out various loan options

STEP 4. Compare the available options and find out the optimum one
Go through all the terms and conditions from the bank before opting for the education loan. You should be clear of these facts -

  • Which offers the lowest interest rate 
  • How long will I be paying the loan
  • How long can I defer payments while studying
  • Is there any option for deferring payments if faced into a financial problem

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
Guide to Student Loans: Eligibility Criteria, Application Process
Guide to Student Loans: Eligibility Criteria, Appl...2k downloads
Canada Student Visa Guide: Study Permit, Requirements, Fees, Application Process
Canada Student Visa Guide: Study Permit, Requireme...39k downloads

STEP 5. Apply for the loan to Study Abroad.

The following important documents are required for almost all loan applications -

  1. Completed Education Loan Application Form
  2. Mark sheets of last qualifying examination
  3. Proof of admission, scholarship etc.
  4. Schedule of expenses for the specified course
  5. Two passport size photographs
  6. Borrower's bank account statement for the last six months
  7. Income tax assessment order of the last 2 years 
  8. A brief statement of assets and liabilities of the co-borrower 
  9. Proof of Income (i.e. salary slips/Form 16)

Things to keep in mind

There are a few important things that banks scrutinize before granting loans. You need to keep them in mind before you apply for a loan, and they are as follow –

  • Repayment capacity of the student's parents/family/sponsor.
  • The value of collateral security. Banks usually get the valuation of the collateral done from an approved valuator
  • Margin money. Usually, in the case of overseas education loan, the student family is required to contribute some margin money, which is usually 25%. For example, if a student is applying for Rs. 20 Lakh loan and the margin money is 25% then Rs.5 lakhs has to be contributed by the student's family.

Related article: Things to know before applying for foreign education loan

 

About the Author
Piyush Kohli
Study Abroad Expert

With a plethora of knowledge of the education domain, Piyush Kohli has been involved with study abroad for over 5 years and counting. He comes with prior experience on the complexities of the study abroad applicatio... Read Full Bio

Comments

(4)

S

Shehnazpreet Kaur

8 months ago

Hiii. . I want education loan. Are am eligible for it .. I want to take post graduation diploma

Reply to Shehnazpreet Kaur

P

Piyush KohliStudy Abroad Expert

7 months ago

Hi Shehnazpreet, you need to visit any major bank along with your documents to learn whether you
are eligible for an education loan.

please send us sbi application forms to malshettyabhishek@gmail.com, and their email id for hderababd and secunderabad

Reply to Abhishek S Malshetty S Malshetty

P

Piyush KohliStudy Abroad Expert

a year ago

Hi Abhishek, you can get the application forms on the official website of the bank.

5 years ago

application from

Reply to

5 years ago

Yes sir

Reply to

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