Education Loan Application Process
Many feel that cost of education in India is increasing at a pace that is faster than growth rate in initial salaries. Though this statement can be contested, it's a fact that at times, high cost of studies comes in way of providing quality education to many. It is to address this concern that banks are willing to lend out through education loans to capable students.
If you are planning to take educational loan/student loan in near future, then here are few steps that will help you stay on track of your loan application:
- 1. The very first thing you need to do is to finalise the course and the college you want to study in. Make sure you properly evaluate both course and college on basis of reputation, placement history, average salaries, alumni network, etc.
- 2. Next important thing to evaluate is fee structure and other expenses you will incur during the entire duration of course. Scholarships can help you reduce your upfront money requirements considerably.
- 3. Now assess the funds available with you and your co-applicants (mostly parents). This will help you arrive at an approximate amount that you need to apply for loan.
- 4. Once you finalize the above, you need to identify the co-applicant for your loan, check the documents for collateral security, etc.
After this, you can make the loan application to the chosen institution alongwith relevant documents like offer for admission in chosen college, income proofs of co-applicant, papers of collateral, etc. and negotiate to get lower rates and better terms. Once the institution assesses your loan application based on information and documents provided, they might approve your loan and money will be released in favor of your college.
It is worth noting that the exact amount approved by the institution will depend on your course fees, your potential of generating future income and financial profile of your co-applicant. Once you ensure that you keep all above steps in mind, it will ensure that you loan application stays on track and you get the loan amount at the earliest.
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