11. Education Loan
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
- 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
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