Documents Required For Education Loan: A Detailed Insight

Ever dreamed of pursuing a degree abroad? Having an international qualification opens up a host of new opportunities for students. It not only allows them to learn from the best minds in the world, but also encourages them to step out of their comfort zone and explore a different culture. One of the advantages of studying abroad is that one learns to be independent.

The rising higher education costs demand that a solid plan to chalk out the finances be made to attain a higher education degree. A good investment in research needs to be made to accumulate funds for higher education in India or abroad, as education has become an expensive affair.

An education loan is handy for higher studies. It not only helps to pay the exorbitant college fees, but also covers other expenses, such as books, hostel, food, laptop purchase, living expenses, and so on, in India or abroad. It takes care of the finances while allowing the students to research about the program they want to study.

It is critical to be aware of the documents required for an education loan so that the process becomes easy when the applicant wants to apply for it. This will prevent any last-minute delays and the inconvenience of rejection. The banks or institutions need the education loan documents list to verify the applicant’s credibility for loan repayment. Incorrect documents will unnecessarily delay the loan approval process.

Though the documents required for education loan approval may vary from one bank to the other, all banks have a set list of required documents for the education loan, and the applicant can inquire about the same easily. This article provides a brief overview of theeducation loan document list for the immediate assistance of the applicant.

Standard Documents Required for Education Loan for Studies Abroad or in India

Kindly take note of the list of education loan documentsrequired by India’s private and government banks. One is not required to submit the original documents, but a photocopy of all the original documents is mandatory.

• Fully completed and signed Loan Application Form
• Photograph on the application form
• Valid Passport (mandatory requirement for admission in a foreign country)
• 2 latest coloured passport size photographs of the applicant and co-applicant. (The photo should have a clearly visible face and forehead with a light background. It must be a clear photograph with no hijab, sunglasses, or cap. Sikh applicants can wear a light-coloured turban.)

 Academic Record of the Student

• Board marksheet/Passing Certificate of classes 10 and 12
• Marksheet/Certificate of subsequent years of education like B.A, B.Tech, B.E, B.Sc, M.A, etc.
• Marksheets of any entrance exams taken such as GRE, TOFEL, GMAT, CAT, etc.
• Any scholarship documents if granted
• Copy of the Offer Letter/Admission Letter from the College/Institute in India/ abroad
• Fee structure and schedule of the College/ Institute
• Receipt of any amount paid

Residence Proof (any one)

• Valid Passport
• Voter ID card
• Driving Licence
• Fixed Landline or Mobile bill
• Cooking Gas bill or Electricity bill
• Recently updated Bank Passbook or duly stamped Bank Statement
• Notarized Rent Agreement Deed
• Property Papers

Identity Proof (any one)

• Driving Licence
• Voter ID card
• Valid Passport
• Aadhar card or Aadhar Enrolment Number
• PAN card
• Government Department ID card

Documents Required for Student Loan Co-Applicant/ Guarantor

While applying for a student education loan, one needs to furnish the details of a co-applicant or guarantor (Parents or anyone from the family) who has the ability to repay the loan.

A primary co-applicant is the person who is liable to repay the applicant’s loan in case he/she is not able to do so. The co-applicant can be the applicant’s parents, spouse, sibling, or guardian.

A guarantor is the third person who gives a guarantee for the repayment of the student loan amount if the applicant or co-applicant doesn’t have a collateral property to pledge for the student education loan taken.

The following are the documents required from the co-applicant/ guarantorin addition to the mandatory documents mentioned above:

Income Proof of Co-Applicant (Salaried Person)

• Address/Residence Proof (same as the list above)
• Identity Proof (same as the list above)
• Salary Slips or Salary details of last six months on the employer’s company letterhead
• Income Tax Return of last two years
• Form 16 of last two years from employer
• Any other income proof not mentioned above (For eg. Fixed Deposits, Bonds, Shares, Debentures, etc.)

Income Proof of Co-Applicant (Self- employed Professional)

• Address/Residence Proof (same as the list above)
• Identity Proof (same as the list above)
• Proof of Office Address (like Lease Deed, Telephone Bill, etc.)
• Stamped Current Account Bank Statement of last six months
• Proof of Income Tax Returns of last two years
• Business Proof (Registration Certificate, Sales Tax Certificates, or GST Certificates)
• Any other income proof not mentioned above

Wrapping up

Submitting the correct documents required for an education loan is mandatory. It facilitates a smooth and hassle-free disbursement of the education loan. Be ready to walk into a new institution – a place of learning and witness the dreams come alive! Apply for an education loan at today and take a step towards fulfilment of your goals.