Education Loan Eligibility Criteria and Documents Required

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Nowadays, self-funding your education has become tough because of the never-ending and ascending expenses on quality education but thankfully students have an option of availing an education loan to study in India or abroad. Education loans or student loans have made it possible for students to pursue their dream of quality education in top universities. Meritorious students with excellent academic profiles are offered financial help to aid their studies. But there are a few chances of rejection of the education loan applications even when they meet all the required eligibility criteria. This is because of the lack of documents or insufficient time given by the bank to produce the documents. This article will cover the education loan eligibility criteria and documents required by the bank to avail of an education loan. 

Education Loan Eligibility

Students who are willing or already taking an education loan must understand the eligibility guidelines and qualify for the same. Eligibility criteria may vary from bank to bank. However, few common criteria set by the financial institutions that students need to fulfill in order to avail an education loan are: 

  1. The student applying for the loan must be a resident of India
  2. The student must have a confirmed admission letter in a recognized University and should be affiliated by UGC/AICTE/Government etc. 
  3. The age of the student must be between 18 to 35 years (when applied for the loan)
  4. The student must opt for an undergraduate or post-graduation courses or PG Diploma
  5. Students willing to pursue full-time courses need to have a co-applicant (parent/guardian or spouse/parent-in-law/ siblings/ first cousins)

Education Loan Documents- Documents required for education loan

The student loan documents process plays a very crucial role as the unavailability of the mandated documents set by the banks can lead to the rejection of your education loan application. 

Basic Documents

Here are a few mandatory documents that a student need to provide to the banks while applying for a student loan:

  1. Duly filled and signed application form with affixed photographs
  2. Copy of exam mark sheets of 10th/12th or latest education certificate
  3. Statement of course expenses/cost of study
  4. 2 photographs of passport size
  5. Aadhaar Card and Pan Card of the Student and Parent/ Guardian
  6. Copy of Aadhaar Card /Voter ID/Passport/Driving License
  7. Identity proof
  8. Age proof
  9. Copy of Voter ID/Aadhaar Card/Driving License/Passport
  10. Residence proof
  11. Rental agreement/Bank statement of 6 months of the student or co-borrower/guarantor/Copy of Ration card/Gas Book/Electricity Bill/Tel Bill

Income proof

  1. Most recent salary slips or Form 16 of the parent/ guardian/co-borrower
  2. 6 months bank statement of the borrower or updated passbook of bank
  3. Updated ITR (Income Tax Return with income computation) of 2 years or IT assessment order of last 2 years of parent/co-borrower/guardian
  4. Documents stating the assets and liabilities of the parent/ co-borrower/ guardian  

Basic Property related documents

  1. Property title deed
  2. Registered Sale Agreement or gift deed or will papers, followed by the original receipt of the same
  3. Allotment Letter by Municipal Corporation (MHADA/CIDCO/HUDA/DDA/JDA)
  4. 30 years link document of the property previous chain of the sale deed
  5. The latest property tax bill and latest electricity bill with the same address
  6. Copy of municipality approved building plan or plot layout 

Other points to remember- Related to property

  1. If the joint property is divided into two parts then clear segregation in the property is required
  2. If a huge land was registered and later was separated into two parts, then motherland registration is required
  3. If the property is acquired through a Gift or a will, then the property should be registered on the new owners’ name. 

There are a few state-specific requirements like for Bangalore A Khata, B Khata, and E Khata is required which is demanded on an immediate basis by the banks. So, it is recommended to avoid going to Government banks directly and apply through Vidyaloans as our team will let you know all the documents required prior and will guide you throughout the education loan process. 

What will Improve Your Education Loan Eligibility?

In order to validate the monetary help which is extended to worthy and meritorious students, banks follow stringent guidelines while assessing the profile of the student. There are few factors which will improve your student loan eligibility. Few parameters are: 

  1. Scoring high grades/ranking in the qualifying exams
  2. Displaying a good academic record
  3. Getting admission in a reputed/top-tier institute or university
  4. Strong financial background of parents/guardians/co-borrower
  5. Displaying good prospects for future employment/income generation

Before applying for an education loan from any of the top banks, you should check your education loan eligibility in advance. You can also connect with our team to know the complete education loan eligibility criteria as our team at Vidyaloans bridges the gap between the student and the bank. Our team will closely check with multiple Government banks and will keep a close check on your loan application status. Vidyaloans will come to your rescue if you are facing any trouble with your education loan process. Connect with our team to know all the available services and experience a hassle-free experience with Vidyaloans.

About the organization- VidyaLoans is an organization which helps Indian students in India to secure a non-collateral loan from Government banks up to 7.5 Lakhs. We have a dedicated team of professionals who assist students with queries and guide them throughout the loan process. Our Team at Vidyaloans is committed to sanction the best loan option suiting the applicant's profile and needs, in a stipulated time frame.