Wednesday, April 24, 2024

How to get student loans in India?

Education has the potential to change the status of anyone. For many, education is just like earning a degree to showcase the certification, and too many of them give value to value education. Imparting graduation from a top university and graduating with a college degree is a dream of many students in India. Investment in Higher education can be blissful as it opens doors of a well-paying and rewarding career opportunities.

Affordability is a common barrier that students confront in accomplishing this aim. Scholarships, grants, and work-study programmes can help with financial aid, but the cost of college has risen dramatically in recent years. It is considerably more costly if one wants to study abroad because of added costs.

Thanks to the loan facility provided by many Top universities, NGOs, banks and financial institutions. As per the direction given by Reserve Bank of India to all scheduled commercial banks of India to introduce a special education loan scheme which aims to offer financial support to brilliant students who want to pursue higher education in India and overseas with acceptable terms and conditions.

Understanding student loans

Student loan is the sum of money lent by Government or private institutions to students who want to pursue graduation, post graduation or higher studies.  

In order to facilitate students with easy access to finances and promote students to pursue higher education, the Government tends to impose lower interest rates which can be paid after a certain period of time called moratorium period. Such loans cover tuition and accommodation fees along with travel expenses and other charges.

Many private Indian banks offer loans to students for pursuing higher education in India or overseas. Leading loan providers of student loans are SBI, Axis and HDFC Bank. 

If you are a student who wants to apply for higher education in India, there are some criteria you need to match with. Citizen of India between the age of 18-35 years with a good academic record having secured admission to a recognized university/institution.

How Student Loan is beneficial?

Required documents to apply for loan in India

Loan application filled completely with recent photograph of applicant  along with following proofs:

  • Photo Identity card- Voter ID/Adhar/Pan/Driving license/PAN
  • Age Proof- Adhar card, or high marksheet/certificate
  • Address proof and signature proof
  • Admission letter with fee breakup
  • Marksheets-10th, 12th and applicable exam scores like GRE/TOEFL/IELTS, etc.
  • Income proof of guardian that is co-applicant
  • Bank statement of last 6 months
  • Income tax return of previous two years
  • Collateral documents
  • Last 2 years audited balance sheet

Online and offline modes to apply education loans in India

Both online and offline applications need to submit necessary documents attached with the duly filled loan application form. After getting approval of the loan, the bank issues a loan document which contains several elements of the loan. The bank disburses the loan amount either in installments or according to the requirement given by the university or institution after the loan document is signed.


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