Few tips to apply for an education loan in India

There are many non-banking financial companies that offer education loans to students looking to pursue higher education in India. These loans are available at very low interest rates and with easy repayment options for the convenience of students.  An education loan in India covers the students’ course fees, his entrance exam fees, the cost of study material and equipment and other payable deposits. The interest rates for an education loan in India varies from 10 per cent to 16.50 per cent depending on the lender.

To apply for an education loan in India, students would need two co-applicants and a guarantor.  These co-applicants should be a citizen of India and should be either the applicant’s parent, sibling, legal guardian or relative. They need to have a bank account in India with a facility to write cheques.

An application for an education loan in India can be made in the following ways:

1) Visiting the NBFC’ office

Students can apply for an education loan in India by visiting the NBFCs office and purchasing the loan application from the office’s counter. This application form needs to be filled with all the required details and duly signed by the loan applicant.

2) Submit the required documents

Along with the loan application form, applicants would need to also submit certain documents like his two colour photographs, photo id proof, residence proof, age proof, documents verifying his signature, academic documents, a proof of his admission to applied college or university and documents proving the entire fee structure of the course.

3) Submit documents of co-applicants and guarantor

Along with their own documents, applicants would need to submit the documents of co-applicants and the guarantor while applying for an education loan in India. These documents would include their photo ID proofs, address proofs, date of birth proof, income proofs and documents verifying their signatures. Co-applicants need to submit the eight months bank statements.

4) Doorstep services for customers

A few NBFCs also offer doorstep services to offer customers an education loan in India. In this process, the representative of the NBFC pays a visit to applicants’ homes and gets the form filled from them. He also collects the required documents from the applicant.

5) Applying online

A few NBFCs have also introduced an online application process to offer customers an education  loan in India, To avail of this option, students just need to fill an application form provided on the NBFCs website and submit it either through e-mail or just by clicking on the submit button on the website.

Once a student submits his application for an education loan in India, the NBFC will verify the loan application along with the credentials of the co-applicant burrower before processing the loan with a nominal processing fee.

6) Repaying the loan

Students can repay their Education Loan in India either by paying either the entire or partial interest during the duration of their course. They can also repay their EMIs after moratorium period or step up their repaying facility by initially paying lower EMIs and gradually increasing them over a period of time.

Higher education is a dream of many students in India. We hope this article proves helps these students fulfil their desires.