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11. Education Loan

 
Concept

An education loan is a sum of money borrowed to finance post-secondary education or higher education-related expenses. Education loans are intended to cover the cost of tuition, books and supplies, and living expenses while the borrower is in the process of pursuing a degree. Payments are often deferred while students are in college and, depending on the lender, sometimes they are deferred for an additional six-month period after earning a degree. This period is sometimes referred to as a "grace period / moratorium."

 
Common Parameters for Eligibility of Education Loan

  • Applicant should be an Indian national.
  • Applicant may / may not a confirmed admission in a college/educational institution at the time the loan application is made.
  • Applicant should be in the age bracket 16–35 years.
  • The Applicant should have a co-borrower such as a parent who acts as guarantor for the loan
  • Collateral may or may not be required for the education loan.
  • Academic scores of applicant
  • The applicant must have cleared the entrance exams as required
  • CIBIL score of co-borrower
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Documents Required

  • Admission confirmation letters and papers validating any scholarships the applicant has qualified for.
  • Schedule of expenses for the course including tuition fees and other expenses.
  • Score sheet of qualifying test(s).
  • Copies of foreign exchange permit/student visa for overseas studies.
  • Bank account statements for last 6 months. (Can be a joint account with parent/guardian)
  • Statement of assets and liabilities of borrower.
  • Proof of age
  • Proof of residence
  • 2 passport size photographs
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Expenses covered under Education Loan

  • Tuition fees and hostel expenses
  • Exam, library, and lab fees if applicable
  • Any refundable caution deposits paid to the educational institute
  • Cost of books, uniforms, and other essentials for completion of course
  • Travel expenses
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