Are you planning your academic journey after completing your 12 th or graduation, but financial constraints are not letting you achieve your aspirations? You no longer have to worry, as you can opt for a student loan. Here’s how to get an education loan after 12 th or graduation.
Key highlights:
- Why Should You Opt for an Education Loan
- How to Get an Education Loan After 12th or Graduation
- Important Terms - Education Loan for a 12th-Pass Student or Graduate
- How to Get an Education Loan After 12th or Graduation – Eligibility Criteria
- Application Process to Get an Education Loan for a 12th-Pass Student or a Graduate
- Documents Required to Apply for an Education Loan
Why Should You Opt for an Education Loan
Student loans give you a fantastic chance to finance your education independently without depending on your parents, empowering you to be Atmanirbhar. Furthermore, you don’t have to settle for a less popular university, as you can secure a seat in your dream university with an education loan.
There will be no need to liquidate your assets or break your family savings. These savings can help you during contingencies such as health emergencies. Also, when you repay your student loans responsibly, you build a healthy credit score. This will unlock benefits when you opt for other financial solutions, such as a home loan, car loan or credit card.
How to Get an Education Loan After 12th or Graduation
Students are often first-time borrowers when they opt for an education loan. Therefore, they aren’t familiar with the education loan procedure. So, here’s everything about important student loan terms, eligibility, the application process, etc., for an education loan after 12th or graduation.
Important Terms - Education Loan for a 12th-Pass Student or Graduate
- Secured and Unsecured Student Loans
For a secured student loan, you have to pledge an asset as a security against your student loan. Some collateral accepted as security for student loans include residential property, fixed deposit, and non-agricultural land. Unsecured student loans do not require any asset as collateral.
- Co-applicant
A co-borrower or co-signer is someone who shares the responsibility of repaying the student loan. The co-applicant should be an Indian citizen and can be a parent, legal guardian, sibling or other blood relative.
- Moratorium period
A moratorium period is like a grace period or a holiday period, which is the time between the student loan amount reaching you and when you make your first EMI payment. The duration of the grace period will change depending on your chosen lender.
However, at Avanse Financial Services, we advise our students to make contributions in the form of simple interest (SI) or partial interest (PI), even during the moratorium. As this is not an interest-free period, interest begins to accrue from day one. Also, paying SI/PI during this holiday period will instil financially prudent habits.
Also Read: Everything You Must Know About an Education Loan from NBFC
How to Get an Education Loan After 12th or Graduation – Eligibility Criteria
- Students Can Apply if They:
- Are Indian citizens who are 18 or older
- Have a confirmed admission before the final disbursal
- Have a co-borrower who earns in India
- Co-Borrowers Need to Meet the Following Criteria:
- Must be an Indian citizen and should be a parent, legal guardian, sibling or other blood relative
- Must have a bank account in India that allows them to sign cheques
- Must be the primary debtor
Application Process to Get an Education Loan for a 12th-Pass Student or a Graduate
When you decide to apply for a student loan after 12th or graduation, you must conduct thorough research to find a perfect education loan partner. Some parameters to keep in mind when selecting a financial institution are the costs covered, time taken to sanction the student loan, repayment options, and customer service, to name a few.
- Education Loan After 12th or Graduation: Application Steps
- Visit your lender’s official website and apply online, or visit their nearest branch office
- Speak to their education loan consultants
- Share the requisite documents
- If you meet the criteria, receive the education loan
Documents Required to Apply for an Education Loan
- For students:
- 2 colour passport-sized photos
- Photo ID
- Residence proof
- Date of birth proof
- Signature verification
- Academic documents
- Proof of admission
- Fee structure
- For co-applicant:
- 2 colour passport-sized photos
- Photo ID
- Residence proof
- Date of birth proof
- Signature verification
- Income proof
- Collateral documents (only for a secured student loan)
- 8-month bank statement
- Relationship proof
Please remember that your chosen lender will evaluate your student profile to determine your employability potential. Therefore, parameters such as your academic scores, entrance exam scores, the pedigree of your university, and continuity in your education, to name a few, will be analysed. Furthermore, your co-borrower’s financial background will be examined as well. If you tick all the boxes, your student loan will be approved.
At Avanse Financial Services, we offer an education loan for study abroad programmes or to study in India. Whether you want a study loan after 12th or after graduation, we offer hyper-personalised financing solutions.
You can use our Education Loan EMI Calculator to calculate education loan EMI in advance and make well-informed decisions. If you have any queries, please don’t hesitate to contact us.
