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Education Loan

Education Loan Assistance

Though scholarships & part time jobs help students fund their education, it may not cover all the expenses. Availing education loan can greatly reduce financial burden on students. Our team works with leading public/private banks and NBFC’s who provide you education loans at affordable rates for your study program. Our team assists its students with the entire process, starting from application to the required documentation, eligibility criteria and the selection of bank. We also arrange finances for you to secure acceptance offer letters from the universities.

FAQ's

What are the eligibility criteria for loan application?

While applying for a study loan, you must keep in mind the following criteria:

  • Nationality: Applicant should be an Indian citizen

  • Course: Banks usually fund full time bachelors & masters courses at colleges/universities in their list. Short term courses, certificate and online programs are not covered.

  • Co-applicant: Educational loans require a co-applicant to sign and provide collateral for the loan. This person should be a family member (parents, sibling or spouse) currently living and working in India, as loans are disbursed and paid back in rupees.

  • Collateral:

  1. For loans up to 4 lacs, no collateral is required

  2. For loans between Rs 4 – 7.5 lacs, a third-party guarantor is required

Collateral needs to be provided for student loans above Rs 7.5 lacs which could be an immovable clear title property

What is the stage for application of the Education Loan?

You can apply for education loan once you receive admission letter from the University. It is critical to show education loan as a source of funds (provided no other source) for your visa applications

When does the loan repayment start?

Loan repayment commences 6 to 12 months after course completion. If a student goes   abroad, lender recovers the remainder from co-applicant

What does an Educational Loan cover?

Education loan covers your tuition fees, hostel charges, library fees, cost of books, travel expenses as well as fees for study tours & exchange programs.

How much loan amount a student can avail for study abroad?

Lenders have their own criteria developed for the upper limit of the loan, the interest rate to be charged and the period and mode of repayment. Lenders usually have some pre-approved courses and institutions and usually sanction education loans on the basis of the quality of the institution, relevance of the course to career options, credit worthiness of the guarantor or co-applicant.

What are the interest rates for education loan?

Loan Interest rates vary between 9% to 15% depending on the banks/NBFC’s

When does the loan disbursement start?

Loan disbursement is done after the loan has been sanctioned. Banks also pay to universities towards tuition fees for release of admission letter required for visa application. Once student reaches abroad, disbursement is done for each semester stage-wise.

What are the documents required for education loan?

Following are the documents needed to apply for education loan.

  1. Two Passport Size Photos (Applicant and Co-Applicant)

  2. Photo ID (Applicant and Co-Applicant, Any one of the following)
    Permanent Account Number (PAN) Card, Passport, Driving License, Aadhaar Card, Voter’s ID Card

  3. Residence Proof (Applicant and Co-Applicant, Any one of the following)
    Passport, Driving License, Aadhaar Card, Voter’s ID Card

  4. Academic Documents of Student

  • Marksheet/Certificate of 12th Exam

  • Marksheet/Certificate of Subsequent Years of Education e.g. BE, BCom, BSc, etc.

  • Marksheet of Any Entrance Exam Taken e.g. CAT, CET, etc. (If applicable)

  • GRE/SAT/GMAT/IELTS/TOEFL/PTE, etc. Marksheets (If applicable)

  • Scholarship Documents (if applicable)

  1. Proof Of Admission (If available)

  2. Admission Letter From the Institute on its Letterhead With Institute’s Address

  3. Last 8 Months Bank Statements of Co-Applicant (If more than one bank account, provide copies of all)
    Make sure to include the bank statements of the Bank Account where Salary or Business/Professional receipts are credited every month.

 

 

  1. Income Proof of Co-Applicant

 

    1. In case of Salaried Employee (All of the following)

  • Latest 3 Salary Slips or Salary Certificate on Employer’s Letterhead

  • Last 2 year’s Form 16 from Employer or Last 2 Year’s Income Tax Returns

  • Any Other Income Proof That is Not Reflected in the Above Documents

 

      B.    In case of Self Employed or Professional (All of the following)

  • Last 2 Year’s Income Tax Returns

  • Last 2 Year’s Certified Financial Statements or Provisional Financial Statements Duly Certified by CA

  • Proof Of Office (any one of the following, Lease Deed, Utility Bill, Title Deed, etc.)

  • Any Other Income Proof That is Not Reflected in the Above Documents

 

    1. If, Collateral – Immovable Property (Flat, House, Non-Agriculture Land, All the Relevant Documents from the Following List)

 

  • Property Title Deed

  • 7 / 12 extracts in case of land

  • Registered Sale Agreement Along With Society Share Certificate

  • Original Registration receipt for the above agreement

  • Allotment Letter By Municipal Corporation / Authorized Govt. Authority Like MHADA, CIDCO, HUDA, DDA, JDA, GIDC etc.

  • Previous Chain of Sale Deed establishing title

  • Latest Maintenance bill along with Receipts issued by builder/ society

  • Latest Property tax bill along with receipts

  • NOC for mortgage from society/builder

  • Approved building plan

  • Encumbrance certificates as on date etc

Our Banking Partners

Banking Partner for Overseas Education Loan - Overseas Mentors Nagpur

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