Education Loan Process
Education loans have made the pursuit of academic courses easier, without burdening parent or guardians with liabilities, that we should be bearing.
The education loan process may vary from bank to bank but there are some fundamental steps.
Step 1: Fill in the loan application form
Like in case of every loan, the applicant has to fill in an application form which may ask for details such as contact details, details relating to academics etc. it is important to fill in accurate information.
Step 2: Personal Discussion
Once the applicant, i.e. the student fills in the form, there is a round of personal discussion wherein he/she may be asked various question relating to the academic performance, the course one has selected, probably the institute etc. At this stage, it is very important to be lucid and clear about one's selection of course and its future potential of generating income. While some banks are known to hold the academic record important, some may give it a slightly lesser attention. This does not go to say that one needs an excellent academic record. But, make sure that there are answers to those mishaps that could have occurred during the academic life.
Step 3: Provide validated supporting documents
Unlike other loans where the talk of documents relating to say property, might come in at a later stage and may cause delay-documents are a must. In case of education loans, documents relating to admissions are mandatory even before the bank considers the loan application. The bank will verify the enrollment of the student from the concerned institute. One may also require collateral security such as papers relating to property to be mortgaged if the loan amount is above Rs. 4 lakhs.
Step 4: Stage of loan approval or denial
When one takes some other kind of loan, there is a co-guarantor, especially in case of personal and home loans. For an education loan, a guarantor is mandatory. The guarantor could be an applicant's parents or guardians. The bank will run a thorough check of the guarantor and his/her credit history before sanctioning the loan. After completion of the process, the loan may be sanctioned or denied.
Step 5: Borrower's signature on a Promissory Note
While the parents/guardians are guarantors, the student is the actual borrower of the loan. Once the loan is sanctioned, the student has to sign a promissory note to the bank.
Step 6: Disbursal of the loan
Once the formalities are completed (additional documents and signed post-dated cheques may be required), the bank will disburse the loan. The bank may disburse the college/institute fee directly to the concerned institute.
10th Marksheet / Passing Certificate- 1 to 3 Lakh,
10th +12th Marksheet/ Passing Certificate -1 to 5 Lakh,
10th +12th Graduation + Post Graduation Marksheet/ Passing Certificate- 10 to 15 Lakh Education Loan.
10th + 12th Grduation + Post Graduation Photo Copy, 6 Photo's, Address Proof, I.D Proof, 3 x Rs. 50 Non Judicial Stamp Paper in favour of Applicant (Blank) Bank A/c No + Statement Address Proof Documents, Rasan Card / Electric Bill / Mobile Bill / Land line bil / Passport etc.
I.D Proof Documents: Pen Card / Electric Bill / Mobile Bill / Land line Bill /Passport etc.
Any Type of Guarantee:- Govt. Guarantor Pvt.Ltd., Guarantor Property, Guarantor ITR,
Documents Required :-
• 7 Photo
• Address Proof
• I.D Proof
• 2 month pay slip / Property Papers / Last 2 Year ITR
• Bank Statement Last 6 Months
• 3 x Rs. 50 Non Judicial Stamp Paper in favour of Guarantor (Blank)
• File Charge : 3150/-
• R.O.I. – 4% to 12%
• E.M.I. – According for Lakh / Time