Education loans help bridge the gap between educational aspirations and financial limitations. They are especially beneficial for meritorious students who cannot afford higher education. However, the process of filling out the education loan application form can be complex, and students often have many doubts about it. They may not understand how to fill out the form, be unsure of their eligibility, or be clueless about the reasons for loan rejection.
Financial institutions like banks and NBFCs offering education loans have very detailed application forms that you need to fill out with utmost care. Making even a single mistake can jeopardize your chance of securing a loan for your higher education. To help you navigate through this process, we have brought you the ultimate guide, providing all the information you need before and during the education loan application process.
Who is Eligible to Fill Out the Education Loan Application Form?
Before you start filling out the education loan application form, you need to ensure that you are eligible. Below, we have provided the eligibility criteria that you need to meet to get an education loan from any bank or NBFC in India.
- Age Limit: Financial institutions in India have set a minimum & maximum age limit for education loans. For most banks, the minimum age limit for loans is 18 years, while for some education loans, like the ICICI Bank Education Loan, the minimum age limit is 16 years. The maximum age limit of the applicant can be between 35 and 40 years, depending on the bank.
- Nationality: The applicant must be an Indian citizen who is eligible to apply for a loan from financial institutions. Some banks may also extend loans to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).
- Eligible Colleges: You can get an education loan if you have a valid admission letter from a recognised college/university. Some premier institutions also have tie-ups with some banks and if you apply for a loan from such banks and have an admission letter from the institution, then you can also get a rebate in the education loan interest rates.
- Eligible Courses: Only the courses which can lead to a job or a successful business in the future are eligible for an education loan.
Also Read: Education Loan Eligibility Criteria – Complete Guide for Students
Things to Consider Before Filling the Education Loan Application Form
Students need to be aware of a few points before they start applying for an education loan. Here are a few factors that will ascertain the best education loan to you according to your needs and make your form-filling process seamless.
Choosing the right bank: Students who are in need of urgent student loans often make the mistake of not researching their options. Exploring different options and picking the best NBFC or bank to get your student loan is important. It is possible that the bank from which you were going to get your student loan is charging a bit higher interest rate. Even a difference of 0.5% in interest rates can lead to savings of lakhs.
Looking for the applicable government schemes: There are various schemes offered by the government of India that offer collateral-free education loans to students. However, there are certain criteria that you must meet to get these loans. Therefore, you must check out these student loan schemes by the government before filling out the education loan application form.
Also Read: Education Loan by Government of India
Keeping all the required documents ready: Before filling out a study loan application form, you need to keep all your documents handy. If you are applying for it offline, keep a physical copy of the documents; if applying online, keep it in PDF format. We will discuss the documents required in detail below.
Checking the EMI details: Different banks and NBFCs have different interest rates. Thus, their EMIs will be different. We recommend you use an education loan calculator to find how much the EMI of the loan will be and whether it is affordable for you or not.
Requirement of a Co-signer in an Education Loan Application
Most bank loans have a specific requirement for a co-signer in an education loan. A co-borrower shares equal responsibility for repaying the loan alongside the student, who is the primary borrower. This means that the co-signer can financially assist the student in repaying the loan if they are unable to pay back the amount on time.
It’s important to note that only a close family member can be a co-signer for an education loan. If you have a legal guardian, they can also serve as a co-borrower. During the loan underwriting process, the lender checks the financial background of the co-signer before granting the loan. This is why you must ensure your co-signer has the following qualities before you fill out the education loan application form:
- CIBIL Score: Your co-signer must have a high CIBIL score, preferably somewhere between 750 and 900.
- Good Credit History: The co-applicant should have a good credit history. This means they do not have any unpaid EMIs, excess loan application queries, or other issues.
- Income Proof: They need to provide their income proof as well. Their income should be more than enough to cover the education loan EMIs.
How do you fill out an Education Loan Application Form?
The education loan application form can be filled out online and offline. Students who are looking for the steps they need to follow to complete the application process smoothly can find both the loan application form and the filling process below.
Filling an Online Education Loan Application Form
The application process for an educational loan is similar for all the banks and NBFCs in India. Here’s the ready reckoner for the step by step application filling process.
Step 1: Visit the official bank or NBFC website where you want to apply for a scholar loan. Then, go to the loan application section.
Step 2: Click on the “Apply Now” button to start the education loan application process.
Step 3: Now, you will be redirected to the application page. Here, you need to fill out information like your course details, course fees, co-signer details, and contact details.
Step 4: Next, you need to upload all the supporting documents and provide details for the collateral if needed.
Step 5: Submit your education loan application form and wait for the bank to contact you for the loan sanction details.
Filling an Offline Education Loan Application Form
Banks in India which are registered with the RBI have branches all over the country. You can pick one of the banks and visit their nearest branch to initiate the education loan application process. Check the step-wise process here:
Step 1: Visit the bank branch or the head office.
Step 2: Contact the loan officer in the branch and explain your requirements to him.
Step 3: He will suggest to you the best study loan scheme they have and provide you with an application form.
Step 4: Fill out the application form with all the required details.
Step 5: Attach a physical copy of all the supporting documents in the application form.
Step 6: Hand the education loan application form to the bank’s loan officer.
Step 7: When the application is approved, you will receive your sanction letter via mail.
Documents Required to Fill Education Loan Application Form
You need to keep the following documents handy if you are applying for an education loan.
- Educational certificates from class 10 to the last qualification.
- An admission letter from the college from which you have applied for admission. (It must clearly show the course fees, hostel fees, and other costs that you need to bear.)
- ID proof of the applicant and the co-signer – (Aadhar Card /PAN Card/Driving License)
- Bank statements and income proof of the co-signer.
- Asset ownership documents for collateral purposes.
- Domicile certificate for address proof
- Subsidy application forms
Also Read: Documents Required for an Education Loan – An Extensive List
Ensuring Your Education Loan Application Success
Here are some tips that can help you make your education loan application form impeccable and help you increase your chances of getting a loan sanctioned.
Complete Your Application Form
One of the rookie mistakes made by first-time applicants is not filling out the loan application form completely or correctly. The forms which have incorrect or insufficient or forged information get rejected in the first round of the underwriting process. Therefore, ensure that you fill all the mandatory fields in the form with correct and complete information.
Having Collateral
Applicants who require an education loan of more than ₹7.5 lakhs are required to pledge collateral to the bank. A collateral is an asset owned by the borrower that they need to pledge to the bank, and the lender can sell it in case the borrower does not pay the EMI. Keep in mind that the collateral’s value should be higher than the requested loan amount. So, for example, if you ask for a ₹10 lakh loan, then the minimum value of the collateral should be around ₹12 lakh. Equal value collateral in secured loans usually does not get approved by the banks as they offer only 80-90% of the collateral value as a study loan.
Also Read: What is a Collateral? – Understanding its Meaning, Purpose, Types and Importance
Correct Loan Amount
When students fill out the education loan application form, one of the common mistakes they make is asking for an amount that they can not justify. Banks can provide a study loan for your course fees, hostel fees, and other educational expenses. However, students need to provide appropriate proof that they need the amount they mentioned for educational purposes only. For example, if you require only ₹15 lakhs for your educational needs during a course but you put ₹16 lakhs in the loan application thinking that you will keep the extra ₹1 lakh for the sudden extra expenses, then your loan application will be rejected.
Academic Performance
One thing that is crucial during the education loan application form process is showing your academic performance. The lender checks whether the applicant is a serious student who is willing to complete his course and join the workforce as soon as he can. To determine whether they have checked the students’ academic performance up till now. You need to demonstrate that there has been no gap in your studies without any valid reason. Also, you must be an excellent student who has received good marks throughout his academic career.
Choosing the Right Course & College
An education loan with a moratorium period is offered to students by banks in the hope that they will get a job after completion of their studies. That is why banks prefer your education loan application form if you opt for any professional courses. Some of the top professional courses in India are:
- BTech
- BBA
- LLB
- BHM
- MBA
- PGDM
Another factor that can affect your likelihood of getting a job after completing your course is the college you choose. So, for example, if a student pursues an MBA from an IIM and another student pursues an MBA from a tier 2 or 3 college, then the education loan application form of the student pursuing an IIM will have a higher likelihood of getting accepted. This is because IIM has a brand that can give you better job opportunities than any other B-school.
Also Read: Dos and Don’ts to Avoid Educational Loan Application Rejection
Conclusion
To successfully apply for an education loan, you must first meet the eligibility criteria, gather all the required documents, and carefully fill out the application form. Having a co-signer, sufficient collateral, and a good academic record can also increase your chances of approval. By following these steps, you can ensure a smooth and hassle-free education loan application form fill up experience.
FAQs
Is an education loan easy to get?
Yes, it is quite easy to get an education loan since you can apply for it online and offline. Keep in mind that the process is easy only when you fill out the application form correctly and you are eligible for the loan.
How to write an education loan application?
You do not need to write a separate application for your education loan; the bank or NBFC website has an education loan application form, which you need to fill out with the correct information, upload the required documents, and then submit it.
Can I get a 100% education loan?
Yes, it is possible to finance 100% of your education expenses with a study loan. You simply need to show all the expenses required to the bank, and they will grant you the loan. Keep in mind that for bigger loans, you may be asked to pledge collateral.
How do you qualify for an education loan?
You can qualify for an education loan if you have a valid admission letter from your college and you are pursuing a job-oriented course from a recognized college or university. Also, you need to be between 16 and 35 years of age. There are other criteria as well that you need to meet to qualify for an education loan.
Which type of document is required for an education loan?
You will be required to submit various types of documents for your loan application, such as educational documents like the marksheet for class 10, class 12, graduation, etc. You will also need the admission letter of the current college, ID proofs, the co-signer's income certificate, etc.
How is an education loan repaid?
Once you fill out the education loan application form and your loan is approved, you will get the loan amount in your bank account that you mentioned during the application process.
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