How to get student loans in India?
Education has the potential to change anyone’s status. For many, education is like getting a degree to show off certification, and too many value education. Graduating from a top university and earning a university degree is the dream of many students in India. Investing in higher education can be blissful as it opens doors to well-paying and rewarding career opportunities.
Affordability is a common barrier that students face in achieving this goal. Scholarships, grants, and work-study programs can help with financial aid, but the cost of college education has increased dramatically in recent years. It is considerably more expensive if one wants to study abroad due to the additional costs.
Through the loan facility provided by many leading universities, NGOs, banks and financial institutions. In line with the direction given by the Reserve Bank of India to all regular commercial banks of India to introduce a special education loan scheme which aims to provide financial support to bright students who wish to pursue higher education in India and abroad with acceptable terms and conditions.
Understanding Student Loans
Student loan is the sum of money lent by the government or private institutions to students who wish to pursue higher, higher or higher education.
In order to facilitate easy access to finance for students and to encourage students to pursue higher education, the government tends to impose lower interest rates which can be paid after a certain period known as a moratorium period. These loans cover tuition and accommodation costs as well as travel and other expenses.
Many Indian private banks offer student loans to pursue higher education in India or abroad. Major student loan providers are SBI, Axis and HDFC Bank.
If you are a student who wishes to apply for higher education in India, you must meet certain criteria. An Indian citizen between the ages of 18-35 with a good academic record having gained admission into a recognized university/institution.
How is the student loan advantageous?
Documents required to apply for a loan in India
Loan application fully completed with a recent photo of the applicant and the following proof:
- Photo ID Card – Voter ID/Adhar/Pan/Driver’s License/PAN
- Proof of Age – Adhar Card or High Score Sheet/Certificate
- Proof of address and proof of signature
- Admission letter with fee breakdown
- Mark sheets – 10th, 12th and applicable exam results like GRE/TOEFL/IELTS etc.
- Co-applicant guardian’s proof of income
- Bank statement for the last 6 months
- Tax return for the previous two years
- Collateral documents
- Audited balance sheet for the last 2 years
Online and Offline Modes to Apply for Student Loans in India
Both online and offline applications must submit the necessary documents attached to the completed loan application form. After getting loan approval, the bank issues a loan document that contains several elements of the loan. The bank disburses the loan amount either in installments or as per the requirements of the university or institution after signing the loan document.