A 6-Step Guide On Applying For Educational Loans

Educational loans are an efficient way to fund your higher studies. They take care of several expenses beyond the academic fees, thus allowing you to focus on your education and excel at it. Have you thought of applying for educational loans but are unsure of where to begin or how to proceed? To help you and others like you stuck in such a situation, we have provided a 6-step guide on how to apply for an education loan.

1. Understand how much money you need

The first step is to calculate and figure out how much money you exactly need. Get an idea of the academic fees that your target institutes charge; research the travel fare and the living expenses that you may incur at the new study destination, and so on. After research regarding these expenses is done and you have come to an approximate figure you will need, start looking for lenders that provide that amount. Some lenders have an upper limit on the loan amount, so choose accordingly.

2. Reach out to the lender

After you have finalized the lender, you need to reach out to them and convey your requirement. You can visit a branch or go the digital way by visiting the website. Besides the amount covered, some other aspects that you should consider when selecting educational loans include: 

• The eligibility of the lender 
• The rate of interest of the lender 
• The option of collateral-free loans
• The kinds of expenses the lender is covering 
• The loan-sanctioning time of the lender
• The repayment options offered by the lender

3. Fill the loan application form

Now, you have to fill the loan application form with the correct information and submit it. Usually, this form is a simple one and can be accessed online as well as offline. It is also advisable to double-check the information provided in the application form for educational loans.

4. Submit the required documents

Along with the application form, you will be expected to submit the following documents: 

• Photo IDs
• Proof of Residence
• Proof of income (of the co-applicant, if applicable)
• Proof of date of birth 
• Collateral documents (if applicable)
• Admission-related document (if applicable)

The list of documents required for educational loans may differ from lender to lender. The co-applicants and the guarantor may also have to provide photo IDs, proof of residence/income/date of birth, and so on. If you have any major doubts, you can also opt for doorstep services which many lenders provide at a minimal cost.

5. Receive the loan offer letter

Once the lender has verified your loan application form and the documents, they will send you a loan offer letter. This letter will also have the loan amount outlined which will help you serve this document as ‘proof of funds’ to the university you are applying to.

6. Read the terms and conditions

This is the most important step without which you should not sign the loan agreement. Reading the terms and conditions of the educational loan agreement will help you understand what you are signing up for so that there is no problem later on.

Do note that the process to apply for educational loan may differ from lender to lender. You are advised to reach out to the lender to get better clarity on the process. Good luck!