Education loan

Education loan

Education loan is provided for higher education in Graduate/ Post Graduate courses from domestic or international education institute. The required eligibility -

For domestic Institutes:

Approved courses leading to Graduate/ Post Graduate degree or Post Graduate Diploma conducted by recognised colleges/ universities recognised by UGC/ AICTE/ Government/ AIBMS/ ICMR etc.

For international Institutes:

Job oriented Regular degree or post graduate diploma/ professional courses offered by reputed institutes at Under Graduate (UG) and Post Graduate (PG) level in any discipline offered by foreign Institutes/ Universities preferably in USA, UK, Australia, Canada, Singapore, Europe, Hong Kong and New Zealand.

 

Expenses covered

  • Fee payable at college/ school/ hostel
  • Examination/ library/ laboratory fee
  • Travel expenses/ passage money for studies overseas
  • Insurance premium for student borrower
  • Caution deposit, building fund/ refundable deposit supported by institution bills/ receipts
  • Purchase of books/ equipments/ uniforms/ instruments
  • Purchase of computer at reasonable cost if required for completion of the course
  • Any other expense required to complete the course like study tour, project work, thesis.

FAQs

Is margin money required for education loan?

Based on amount of loan it ranges from bank to bank between 5% to 15%.

What is maximum tenure of loan?

Maximum tenure varies from 7 years to 15 years

Is collateral security required?

Yes, collateral security is required by Banks for loan above Rs. 20 lakh. Security can be owned by parents, relative or any third party guarantor.

Checklist of Documents to be submitted along-with duly filled Loan Application Form -

I) Student-applicant:
  • 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
  • Passport to be mandatorily submitted
  • Academic Records:
    • 10th Result
    • 12th Result
    • Graduation Result- Semester-wise (if applicable)
    • Entrance Exam Result through which admission is being taken (e.g. GMAT, GRE, TOEFL, etc.)
  • Proof of admission: Offer Letter or Admission Letter from the Institution. Conditional admission letter may be considered.
  • Statement of cost of study/ Schedule of expenses
  • 2 passport-size photographs
  • If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year
II) Co-applicant::
  • 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 loan from other Banks/Lenders, then Loan A/C statement for last 1 year
III) Income Proof for Salaried Co-applicant/ Guarantor:
  • Salary Slip or Salary Certificate of last 3 months
  • Copy of Form 16 for last 2 years or copy of IT Returns for last 2 financial years, acknowledged by IT Dept.
  • Bank account statement for last 6 months (of Salary Account)
IV) Income Proof for Self-employed Co-applicant/ Guarantor:
  • Business address proof (If applicable)
  • IT returns for 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

Note: All documents should be self-attested.