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The process to apply for an education loan in India

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You have several aspirations and study hard to fulfil them. Whether you want to pursue higher studies in India or abroad, you need funds to pay for all academic courses. Vocational and specialised courses have varying fee structures. You can pay them by applying for a loan at a bank or financial institution.

With proper guidance, you can complete the education loan process hassle-free with no complications. While the application, approval, disbursement, and repayment procedure may differ among various financial institutions, it is simple to follow.

Determining the loan amount

Before you apply for student loan, you should evaluate the loan amount and check whether it will meet the financial requirements. The assessed expenses should cover the hostel and college fee, examination, laboratory, library fee, books and equipment costs, and travel expenses. The loan amount should be accurate because it can affect the education loan interest and the security required.

Comparing lenders

The entire process of comparing different banks requires plenty of time and energy. Students can compare and choose lenders on various parameters to suit the simplest needs. The criteria include the student profile, collateral profile, and co-applicant profile.

Applying for the loan

The process to avail of a student loan starts with filling the application form and submitting the documents. The education loan documents differ between lenders. It includes the university’s offer letter, the loan application form, the estimated education cost, original mark sheets, and residential proof. They may also require the IT returns, PAN cards, income proof, passport, etc., of the co-borrower.

Repayment

The repayment for education loan in India starts after the moratorium period (EMI holiday) or when the person gets employment (whichever is earlier). Some financial institutions require partial interest payments during the period of study. They charge interest even during the study period, and therefore the moratorium period is accrued for overseas education loan.

How to calculate the expenses?

You can calculate the expenses towards the loan using the education loan EMI calculator. It gives you accurate results within seconds. You need to enter the loan amount, rate of interest, and loan tenure to get the monthly payment amount. You can access the calculator at any time as it is available on the bank or lending website for free.

How to compare schemes?

You can take the quotations from different banks and lenders online and offline and compare them on websites. A student loan in India allows you to fulfil your dreams and choose the desired profession. According to the scheme, you can calculate how you can afford to repay the lender in instalments and adjust the tenure and interest rate.

Conclusion

You can also enquire about the different loan eligibility requirements. Ensure you have a clean credit record and decent repayment capacity for swift loan approval.

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