Looking at the Documentation required for Educational Loans for Students.

An education loan is a boon for students and parents alike.  To students, it provides the confidence to pursue their studies at the University of their Choice. To parents, it eases the worry of funding for their children’s education. Also, with the rising costs of education in India, education loans can help you to navigate through them. If you want to benefit from this way of funding, then you need to have as much information about educational loans as possible.  To help you out, in this article, we are looking at the documentation you will require when applying for educational loans for students. Let’s get started.

Firstly, do bear in mind that the documentation required by each lender will differ from the other. This article gives you a general idea of the documents you may probably be asked for.

1. Loan Application

The first and foremost thing in documentation for educational loans for students is a duly filled loan application form. You may also have to attach a certain number of photographs with this application form.

2. Proof of Identity

You can use the following sets of documents as proof of identity-

• Aadhaar Card.
• PAN Card.
• Voter ID Card.

3. Proof of Residence

You can use the following as proof of residence –

• Aadhaar Card
• Electricity Bill (not older than 3 months)
• Voter ID Card
• Driving License

4. Date of Birth Proof

Here, you may use your birth certificate to provide as date of birth proof.

5. Academic Documents

Lenders providing educational loans for students may ask for past as well as present academic documents to understand your previous academic record and your dedication towards your studies. These would include-

I. Marksheets of board examinations, that is, your 10th and 12th standard mark sheets

II. The marksheets and certificates pertaining to any undergraduate courses or diplomas you may have completed

III. Report cards of any applicable entrance exams that you may have given and passed

IV. Letter of admission from the university you have been accepted into

V. Fee schedule of your course as provided by the university 

Along with this, your lender will ask for additional documents from your co-applicant/s and guarantor. Let’s take a look at these too.

• Bank statements of a particular period
• Proof of Income
• Proof of relationship with the student

Students who have opted for a secured loan may have to provide documents related to the collateral as well. 

Let’s also take a brief look at the eligibility criteria required by educational loans for students.

1. The applicant should be an Indian citizen of 18 years and above.

2. The applicant must have already secured admission into the university of their choice.

3. The applicant must have a co-borrower residing in India. 

Apart from this, you could boost your eligibility for the loan by opting for a technical source or any course that’s preferred by the lender. Technical courses such as an MBA, engineering have a strong potential of higher income in the future. Hence, lenders are very much willing to provide education loans to such students.

Besides the documentation, several aspects of educational loans for students differ from lender to lender. Always make sure you do your research well before going ahead.