If you are researching ways to apply for an education loan to finance your academic ambitions, we have you covered. After securing a seat in your preferred institution, here is a list of things you must tick off your list while filling a loan application form.
Step 1# Fill out the application form correctly
Nowadays, certain lending institutions let you apply for education finance online and offer quick disbursal of funds. However, if you apply offline, fill your education loan application form with a pencil first. This way, you can rectify any mistakes you make later.
Also, while filling out the form online or offline, provide accurate contact information, residential address, educational qualifications, cost of course, including tuition fees, hostel expenses, etc., and any other information asked for.
Step 2# Meet with the lender
After submitting the form, your lender might require certain clarifications. In the personal discussion, the loan officer can ask you questions about your academic performance, the course you selected, the institute you wish to attend, the future scope of your chosen educational stream, and so on.
You may also be required to give a detailed break-up of the loan amount requested. It is best to prep for the same beforehand.
Step 3# Compile the necessary documents
Before the lender can approve your personal loan for education, they will ask for proper documentation. You can start compiling the following papers.
- Admission offer letter or the student acceptance confirmation and the fee break-up provided by the college/ university
- Photo identity proof like voter ID card, PAN card, passport, Aadhaar card, or driving license of the student, parent or guarantor
- Salary slips and ITR returns of the student, parent, or guarantor
- Any other document required for studying abroad, if applicable. For instance, entry permit, I-20 Form, etc.
- School mark sheets and certificates (most lending institutions ask for 10th and 12th class mark sheets)
- Income proof like last 6 months’ bank statements of the person guaranteeing the loan repayment
- Documents of the collateral pledged (if applicable)
- Language proficiency scorecards like HSK, IELTS, TOEFL
- International admissions exam scorecards for GMAT, GRE, SAT, LSAT, etc.
Additional Read: Things to Look Out for While Signing Education Loan Documents
Step 4# Wait for approval
Now, the lender verifies your student loan application form, documents, and transcripts, before approving your loan. Until the student cannot repay the loan, the lender considers parents or guardians as guarantors. The interim guarantor signs a promissory note, which is a notarised document, affirming that they are responsible for repaying the loan.
Step 5# Check for funds
Once the lender sanctions your loan, they will notify you about funds disbursal. At this point, you must check with your institute since lenders typically credit the loan amount into the account of your chosen college or university.
Additional Read: Things You Need to Know about Education Loan Sanction Letter
To sum up
All set to apply for education financing? If you are looking for a reliable financier, turn to Tata Capital. We offer education finance at competitive personal loan interest rate with minimal paperwork and comfortable repayment tenures.
Click here to check our relaxed education or personal loan eligibility criteria and apply today!