Dreaming of studying at a prestigious university but worried about the costs? Education loans bridge the gap between your aspirations and financial limitations. However, the long list of student loan requirements can feel overwhelming. In this blog, we try to simplify the student loan criteria, right from the documents you need to factors that can improve your chances of approval.
Documents Required for Education Loan
Before applying for an education loan, you will need to organise the required documents. Depending on your profile, different sets of documents will be needed. Here are the lists of documents for salaried and self-employed individuals, and those for first and subsequent disbursals.
Documents for Education Loans for Salaried Individuals
Salaried individuals must provide proof of income and other supporting documents such as:
- KYC Documents: Aadhaar card, PAN card, or passport, recent utility bills.
- Income Proof: Latest salary slips for three months or Form 16.
- Bank Statements: Last six months’ bank statements.
- Educational Proofs: Educational records like SSC and HSC certificates.
- Admission Letter: Copy of admission letter along with fee structure.
- Optional: Guarantor
Documents for Education Loan for all Other Individuals
The documents required for education loans for self-employed or other individuals are as follows:
- KYC Documents: Aadhaar card, PAN card, or passport, recent utility bill
- Income Proof: IT returns or business financials for the last two years (for non-salaried individuals).
- Bank Statements: Last six months’ bank statements.
- Educational Proofs: Educational records like SSC and HSC certificates.
- Admission letter: Copy of admission letter along with fee structure.
- Optional: Guarantor
Documents Required for First Disbursement
When applying for the first disbursement of an education loan, the following documents are needed:
- A demand letter from the educational institution.
- Loan agreement and sanction letter signed by applicant and co-applicants.
- Disbursement request form signed by applicant and co-applicants
- Receipts of margin money paid to the college or university along with a bank statement which has the transaction documented.
- Documents for collateral security (if applicable)
- Form A2 signed by applicant or co-applicants in case of overseas institute.
Documents required for subsequent disbursement
- A demand letter from the educational institution.
- Disbursement request form signed by applicant and co-applicants
- Receipts of margin money paid to the educational institute along with a bank statement which has the transaction documented.
- Exam progress report, marksheet, or bonafide certificate.
- Form A2 signed by applicant or co-applicants in case of overseas institute.
Factors Enhancing Education Loan Eligibility
Here are the factors that affect your education loan eligibility:
- Academic Background: Good grades in academics makes lenders more confident about funding your education.
- Age: Your age is also a factor. Most lenders have a defined age bracket for education loans and being in that range improves your chances, as it aligns with the expected timeline for starting repayment.
- Co-applicant or Guarantor: In the case of education loans, a co-applicant is usually a parent. If they have a steady income and good credit score, it can strengthen your application.
- Educational Institution: Admission to a recognised or reputed institution boosts eligibility.
- Collateral: Offering collateral such as fixed deposits or mutual funds reduces the lender’s risk thus increasing approval chances.
- Lender’s Policies: Each lender has specific policies regarding loan approval, such as preferred institutions, course types, and acceptable co-applicants. Research your lender’s requirements beforehand to customise your application.
Chances of Getting an Education Loan
To increase your chances of getting an education loan, ensure the digital documents you upload for your education loan application are genuine and legible to speed up processing and approval. Maintain a good credit repayment history, as late payments or defaults can negatively impact your profile and loan chances.
At CASHe, we simplify the education loan application process with minimal paperwork and quick approvals. We offer customised loans catering to diverse needs to make education more accessible for students like you.
Conclusion
Education loans empower you to pursue your academic dreams without financial stress. By understanding the education loan requirements, gathering the necessary documents, and improving your eligibility, you can streamline the process and secure the funding you need for your future.
CASHe offers a seamless online education loan process with amounts ranging from ₹45,000 to ₹3,00,000. Simply upload digital documents to complete your application. Enjoy instant disbursement and flexible EMI plans with tenures from 270 to 540 days, making financing your education easy and convenient.
