Education Loan Documents Required

An education loan is one of the foremost methods to provide financial assistance to meritorious students for pursuing higher education in India.
 

Banks have set Education Loan eligibility standards for the student as well for the co-applicant. The student should be a citizen of India with good academic track record and should have secured an admission to a recognized University/College. All loans require a co-applicant who needs to fulfill the basic requirements to apply for an educational loan. The co-applicant could be a salaried or self-employed parent, relative or sibling with a steady source of income. The age, annual income, work experience in the current organization, total work experience, educational qualification and profession of the co-applicant are all considered by banks before deciding on the loan amount.

Though every bank or financial institution has its own requirements for the documents to be submitted with an Education loan application form, most banks may ask for the following to be submitted.

Documents from student

  1. Application form (fully completed and signed)
  2. Two passport size photos (both Applicant and Co-Applicant)
  3. Letter of admission from the Institute (on its letterhead with the address of the Institute)
  4. Cost break-up of the educational program from the Institute (specifying the tuition fees- term-wise, year-wise and any other expenses involved)
  5. Academic record of the student:
  • 12th board marksheet
  • Certificates of subsequent years of education- graduation and postgraduation (if any)
  • Marksheet of any entrance exam taken by the student (if applicable)
  • Scholarship documents (if any)
  1. Affidavit or Declaration that confirms that no loan has been availed from another bank or financial institution
  2. ID Proof (any one of the following)Passport, Pan card, Voter's ID card, Driving License, Aadhaar card
  3. Address Proof (any one of the following): Driving license, Ration card, Voter's ID card, Passport, Aadhaar card
  4. Age proof (any one of the following): Birth certificate or Class X certificate
  5.  Visa approval and travel papers

Documents from Co-applicant (if salaried):

  1. Address proof
  2.  Identification proof
  3. Last 3 months salary slips or salary certificate on employer's letterhead
  4. Last 2 years Form 16 from employer or last 2 years Income Tax returns
  5. Any other income proof that is not reflected in the above mentioned documents

Documents for Co-Applicant if Self employed (Professionals/Individual):

  1. Address proof
  2.  Identification proof
  3. Last 6 months bank statement
  4. Last 2 years Income Tax Returns
  5. Proof of office (any one of the following: lease deed, utility bill, title deed)
  6. Any other income proof that is not reflected in the above mentioned documents
     

According to the Reserve Bank of India guidelines, the maximum student loan for education in a domestic University is Rs. 10 lakhs, and for studying abroad, it is Rs. 20 lakhs. The guidelines also declare that an education loan taken up to Rs. 4 lakhs is allowed without collateral security and when the loan exceeds the said amount, it becomes necessary to have a collateral and third party guarantee, which in most cases is one of the parents of the student.

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