The significance of quality studies is a given. However, it is also true that studying in India or Abroad becomes quite a challenging task for many. Moreover, given the financials required, people face difficulty applying for and affording the same. In such cases, student loans prove to be a savior. Furthermore, these also help bridge the gap and bring parity between the rich and the poor.
While the benefits of education loans are many, applying for them with the correct procedure can be challenging and tedious. In addition, different student loan lenders have different expectations from the applicants, and a list of colleges and universities is available for application and admission.
This process is divided into multiple steps and requires one to submit a set of specific documents for each phase. First, let’s go through the fundamentals of applying for an education loan with the detailed process steps, benefits, and more.
Let’s start with the two key features of education loans in India. First, students are eligible for income tax benefits after these loans. Secondly, girls students can enjoy concessional rates of interest for educational loans.
An education loan is preferred over a personal loan because it comes with multiple benefits and convenience. Furthermore, it pays for the course tuition and additional expenditures, including books, lodging, transportation, and equipment. The eligibility for loan amount depends on the course cost and the applicant’s family income.
Speaking of eligibility, any student can get these loans with their parents or guardians as co-applicants. Its repayment starts one-year post after the course completion or within six months of getting a job, whichever is earlier.
Now, let us look at each step in detail.
Application Process For Student Loans
Research Process
Commonly, applicants commit the mistake of applying for student loan amounts equal to their fees and tend to ignore the loan magnitude. Options to pay later allure students and cost them significantly in the long run. So, it is always best to start with a research process and go through the repayment terms of their education loan.
To clarify, the research can be divided into the following steps:
- Check the total academic fees required (consider extra expenses)
- Confirm fund sources and amount without taking a loan,
- Now identify the loan amount needed. (2-1)
- Check the official websites of registered PSU, private banks, NBFCs, or education loan experts to research for information.
- Check the terms and conditions of student loans.
- Seek confirmation for these details by directly reaching out to the bank.
Now, the process can be taken further in either of two ways: Online or offline. With the intervention and availability of online platforms, students are no longer required to visit offline application stations.
However, many people still choose to visit bank branches and opt for offline applications. In either case, here is the detailed procedure for both options.
Offline Application Process
- Start by collecting complete information about the education loan calculation. Post that, gather the necessary application documents.
- Visit the nearest branch of the selected bank.
- Ask for a student loan application form, and fill in all the personal, academic, and financial details.
- Confirm all loan terms and conditions.
- Conclude the loan application process and ask for a formal student loan agreement.
Alternatively, let us look at the detailed steps of the Online loan application process.
Online Application Process
- Go to the selected bank’s official website
- Hunt for the education loan product page
- Fill in the application cum consent form with your personal and contact details.
- Respond to the bank callback and provide your complete financial and academic details
- Visit the bank to complete the loan sanction process or opt for the doorstep service of a study loan.
To sum it up, this process depends on the callback and follow-up services the respective banking institutions offer.
Education Loan Application Through Government Portal
The Indian government provides a dedicated education loan portal called ‘Vidyalakshmi’. To apply for the same, a student must:
- Visit the official Vidyalakshmi portal website
- Register with your contact details and verify registration via email
- Fill up the Common Education Loan Application Form
- Upload the necessary academic, personal and financial collaterals with KYC documents
- Select the list of available schemes and finalize a suitable bank’s study loan option for your requirements
- Apply for the same and confirm your application
- Ensure regular follow-up for the application status
- Upon bank confirmation call, confirm all details as mentioned in your form
Banks for Educational Loan: Educational Loan Bank Branches
Education Loan Application Process Through Education Experts
- Research for the best student loan expert service options
- Get in touch with online and offline education loan experts
- Fill up the provided form
- Upon call back from experts, provide the necessary details
- When experts revert to the best possible options, finalize and confirm one.
Going ahead, it is essential to note that students must apply separately for subsidies apart from the loan application form. For the same, one needs to submit family income proofs and caste/category certificates.
Now, let us go through the benefits.
Benefits Of Education Loan
- It applies to all. Any student willing to study can use and benefit from an education loan.
- Education loan is applicable for all courses. Graduation, post-graduation, diploma or vocational- one can avail of student loan for all these courses.
- Ease of availability is a significant advantage as education loans are widely and easily accessible. All banks offer this as a priority product per the RBI’s guidelines.
- Depending on the requirements, one can avail of a loan amount ranging anywhere from Rs. 2 lakhs to Rs. 22 lakhs. However, the exact loan size depends on the course applied for
- The expense curve for education is rising with each passing day. Student loans help in the completion of education with financial ease
- Applicants can avail of extra benefits such as library fees, caution deposits, building deposits, laboratory fees, tuition, examination fees, hostel fees, travel expenditure, and more
- Easy repayment is another significant advantage of education loans. Usually, the repayment tenure can extend up to 5 to 7 years post-course completion.
