How to apply for education loan?

Getting an education loan can be an easy task, provided you have filled the application correctly and provided the required education loan documents to the bank. Prior applying for an education loan, you need to remember following things:

The education loan is only available for long term courses.The courses for which you can avail education loan include major graduation, post-graduation, management, medical, engineering, and professional courses. Banks or financial institutions may have their approved list of educational courses and institutions.The maximum education loan amount you can get greatly depends on the market value of the collateral you are offering.

The first step in applying for an education loan is selecting and approaching a bank or financial institution for the loan. You need to learn about eligibility criteria, maximum loan amount, loan tenure, interest rates, terms and conditions, documents required before applying for an education loan. Let’s take a look at some important points of consideration and different steps related to education loan procedure

Step 1: Gather all Educational loan documents 
The student loan is different from other bank loans, so the documents required for applying for an educational loan are also bit different. The list of education loan documents you will need to submit with the loan application is quite big.

You need to have documents such as SSC, HSC, Graduation Mark sheetsInstitute Admission Letter with Fee break-upPersonal Information DocumentsAttested copies of documents for proof of age/date of birth and residential addressIf the person applying for education loan is a salaried employeeLatest 2 Salary Slips and documents mentioning date of joining detailsLatest 6 months bank statementIf the person applying for an education loan is self-employedLatest 6 months bank statementLast 2 years Income Tax Return papers with document showing computation of incomeLast 2 Years Audited Balance SheetIncome Documents( for co-applicant)Income Proof/Income Tax Returns papers of last two yearsLatest 6 months bank statementValuation certificate from Bank’s approved panel if you are offering residential/commercial property or piece of land as collateralDeclaration or affidavit saying you have not approached other bank or financial institution for an education loan.

You need to provide original policy documents and papers related to collateral for fixed bank deposits, KVP, LIC policy to get an education loan.

Step 2: Applying for an education loan
You can either fill up the online application form available on the bank portal or download the application form from the bank portal. Alternatively, you can also go to the nearest branch of the bank and fill the printed education loan application. Generally, the education loan officer overlooking the education loan procedure will help you fill the education loan form correctly.

Some banks do not charge processing fees for education loans while some charge upfront fees for processing the education loan. The loan approval is generally quick if you have provided necessary documents as required by the bank.

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