Log in Contributions Create Account Talk Main Page
For more procedures click : India
India - How to get an Educational Loan


Procedure

[edit]

First check whether your educational institute has a tie-up with any bank for educational loans. If it has, there could be more flexibility in collateral and documents required or interests rates offered to you. If not, it is preferable to approach the bank branch where one of the parents have an account. However, in certain cities, there may be branches designated for issuing education loans.

This loan is repayable from one year after the completion of the course or from 6 months from gainful employment whichever is earlier. The repayment period is typically 5-7 years. The interest until the beginning of repayment is borne by the Government of India for low income families. After repayment starts, the borrower can claim income deduction for the interest under section 80-E.




Required Documents

[edit]


  • Completed Loan Application Form (see below)
  • 2 Passport Size Photographs
  • Proof of residence (passport, voter's ID card, etc)
  • Proof of admission
  • Parent's proof of income (salary slip, form 16)
  • Parent's bank account statement (last 6 months)
  • Parent's Income Tax Assessments of last 3 years
  • Aadhaar Card
  • 10th/12th/Graduation/Post Graduation marks statements (all applicable)
  • A detailed statement from the institute giving the breakup of expected expenses
  • Proof of satisfactory academic performance after loan approval for every semester

If the individual was working full time before the course, he/she should also submit

  • Details of Present Employment.
  • Proof of income (salary slip, form 16) and Income Tax Returns for the last 3 years





Office Locations & Contacts

[edit]


Please list down the office locations that can be approached for applying. External links can also be used for specifying office locations.




Eligibility

[edit]

  • Graduation, post-graduation, technical and professional courses conducted by colleges approved by UGC/ AICTE/IMC/Govt
  • Courses conducted by autonomous institutions like IIT, IIM etc
  • Teacher training/ Nursing courses approved by Central/State Government
  • Regular Degree/Diploma Courses like Aeronautical, Pilot training, Shipping etc. approved by Director General of Civil Aviation/Shipping



Fees

[edit]

  • Tuition Fee
  • Examination
  • Books/Computer
  • Hostel
  • Insurance
  • Educational trips
  • Uniforms
  • Library/Laboratory
  • Passage Money for travel abroad
  • Two-wheeler (upto Rs. 50,000/-)



Validity

[edit]

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever



Documents to Use

[edit]

Please attach documents that can be used by people. e.g. links




Sample Documents

[edit]

Please attach sample completed documents that would help other people.



Processing Time

[edit]

Please explain processing time taken in obtaining the document/certificate.



[edit]


Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external websites.
Please remove the "&" inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M". 
	




Instructions

[edit]

Please provide other instructions related to the certificate/documents.
e.g. The state office holds birth records since january 1908.



Required Information

[edit]

Amount LoanedEdit

  • In India - a maximum amount of Rs 10 lakhs can be drawn
  • Abroad - a maximum amount of Rs 20 lakhs can be drawn

For amounts less than Rs 4.5 lakhs, there's no need for security. Any amount between Rs 4.5 lakhs and upto Rs 7 lakhs requires a parent to be a co-obligant. For loans beyond Rs 7.5 lakhs, tangbile collateral security (usually a house) must be hypothecated. All loans are secured by parent of the student borrower. In case of married person, co-obligator can be either spouse or the parents/parents-in-law

DisbursementEdit

The loan is disbursed in stages as per requirement directly to the institutions and associated vendors of educational paraphenalia. The lending institution may also make a request with the educational institution for your progress reports and link disbursals to it.

Things to CheckEdit

  • Whether interest rate offered is fixed or floating
  • Whether certificates will be retained by bank during the period of the loan
  • Processing fees and prepayment penalty




Need for the Document

[edit]


Anyone who has secured an admission into an approved course in India or elsewhere is eligible for an Educational Loan. The bank manager has discretion in approving the loan based on the student's academic performance and the expected employment opportunities for the course.



Information which might help

[edit]


Enter other informations which might help.



Other uses of the Document/Certificate

[edit]

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.




External Links

[edit]


Others

[edit]

NotesEdit

  • Vocational training and skill development study courses are not covered




Content is available under Creative Commons Attribution unless otherwise noted.
Privacy policy About Wikiprocedure Disclaimers