How can I apply for a student loan? Who is eligible for a loan?

Posted by sourav on September 19th, 2018

Quality education is must for a successful life. What we become tomorrow crucially depends on the quality of education we receive today. But the cost of education at top institutions/universities in India and abroad has been going up over the time. Education has been commoditized & studying from the top-notch B-school or law school or other schools in various fields adds to the professional skills in your portfolio and gets you a placement for a good job. But often such placement guaranteed education requires great price. In such cases, an education loan plays very important role.

What does an education loan cover?

Education loan is provided to finance all your education related expenses. It is extended for the purpose of pursuing an academic degree in India or abroad and is provided by almost all banks and NBFCs (Non- Banking Financial Companies). An education loan covers all expenses including course fees and other associated expenses like accommodation charges, books and supplies, exam and other miscellaneous charges.

Who can apply for an education loan?

Any Indian student who has got admission into a university/college approved by any competent
authority in India or abroad to pursue a full-time, part-time, graduation, post-graduation, vocational, professional and technical courses can apply for an education loan. There is no restriction on the upper age limit as per the RBI guidelines.Documents required
The documents required may vary from lender to lender, time to time. Usually, the following will be

asked for:

• Mark sheets of X, XII   and graduation (if any)
• Letter of admission from the college/institution
• break-up of the costs of the course
• Photographs (Usually passport size)
• Bank Account Statement of the applicant for the last six months (If Applicable)
• Income tax Assessment statement of the guardian (Parents or Guardians)
• Statement of Assets & Liabilities of the co-borrower (Parents or Guardians)
• Proof of Income of the Guardian
• Identity Proof like Driving License, Passport or Voters ID for both the student and the Guardian
   Address Proof like Ration Card or Electricity Bill etc
  Courses eligible for the education loan
  There are many courses that are eligible for an education loan. Here are some of them:

Courses in India

• Vocational and skill development courses of 2 months or 3 years duration approved by
  Government or National Skill Development Corporation are provided a loan under this scheme
• Graduation courses like BA, B.Com, B.Sc. BCA, B. Tech, B.E. etc
• Post Graduation courses like MA, M.Sc., M.Com, MCA, MBA, MBBS, Ph.D. etc.
• Professional Courses like Engineering, Medicine, Law, Veterinary, Management etc
• Courses like ICWA, CA, CFA etc

Courses Abroad

• Post Graduation Courses like MCA, MBA, MS etc
• Graduation courses offered by reputed universities

Please note that this is not an exhaustive list. It’s just an indicative list that shows you the kind of
courses which are eligible to get the best education loan. To know in details also read Courses Eligible For
Education Loan in the blog section of Afinoz.com.