With the rising cost of education, accessing quality education can look like a distant dream. However, student loans have been effectively bridging the gap between students and their academic aspirations, which has encouraged several students to opt for education loans. Here’s what you must know about the student loan application, documents required for an education loan and other interesting information.
Key highlights:
- Why Is an Education Loan Popular Among Students?
- Things to Keep in Mind: Student Loan Application Process
- Easy Application Process at Avanse Financial Services
- Documents Required for an Education Loan
- What are the Other Parameters that Financial Institutions Check?
Why Is an Education Loan Popular Among Students?
Did you know that the market value of global student loans is projected to reach USD 3,800 billion by 2029? This highlights the high demand for education loans. An education loan is an amount borrowed by students which is repaid through easy EMIs.
Whether you opt for a loan for study abroad or to study in India, it has some fantastic benefits. You can take pride in earning a self-made badge by financing your education without depending on your parents. Furthermore, when you opt for an education loan, you don’t have to dip into your family savings or liquidate your valuable assets. Family savings can come in handy during a rainy day.
Also, repayment of education is a responsibility. When you repay the student loan, you develop a healthy credit score. With an enhanced credit score, you can unlock several benefits when opting for other financial solutions such as a home loan, car loan or credit card. However, it is necessary to familiarise with the education loan application and student loan documentation process before applying.
Also Read: Understanding How Education Loan Works
Things to Keep in Mind: Student Loan Application Process
Know What You Want Before the Student Loan Application Process
You need to identify your financial requirements so you can conduct thorough research based on your preferences. Financial institutions offer both secured (with collateral) and unsecured (without collateral) student loans. You must choose between the two depending on your financial needs.
You can try various online calculators to get a better picture of your education loan. You can use the College Course Expense Calculator to get an estimate of your overall course cost. The Eligibility Calculator will help you understand the loan amount you are eligible to borrow. EMI Education Loan Calculator can be used to know your estimated EMIs.
Find a Perfect Student Loan Partner
Please remember that interest rates should not be the only parameter when considering the student loan application process. You have to check various other aspects such as student loan amount, tenure, turnaround time, and customer service, to name a few. Furthermore, it’s necessary to check if your chosen lender’s financing solutions also meet your financial requirements.
Understand the Educational Loan Eligibility
Also, you need to check the eligibility requirements of your chosen financial lender. Here are some basic 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 also 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
Also Read: Types of Education Loans Students Must Know
Easy Application Process at Avanse Financial Services
You can apply to Avanse with the documents required for an education loan in 4 easy steps:
1: Fill out the online student loan application
2: Speak to our Avanse representative
3: Share documents needed for an education loan
4: If you meet our parameters, your student loan will be sanctioned
Documents Required for an Education Loan
Please ensure that all documents needed for an education loan are in place before applying.
- Some Important Documents Required for Student Loan - For applicant
- 2 colour passport-sized photos
- Photo ID
- Residence proof
- Date of birth proof
- Signature verification
- Academic documents
- Proof of admission
- Fee structure
- Some Important Education Loan Documents - For Co-Applicant
- 2 colour passport-sized photos
- Photo ID
- Residence proof
- Date of birth proof
- Signature verification
- Income proof
- Collateral documents (for a secured student loan)
- 8-month bank statement
- Relationship proof
What are the Other Parameters that Financial Institutions Check?
Financiers will thoroughly 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 exams, to name a few, will be examined. Furthermore, your co-borrower’s financial background will be analysed too. If you meet the parameters, your student loan will be approved.
So, you can choose an education loan to finance your studies and be Atmanirbhar. Now that you know the application process and documents needed for a student loan, you can embark on your education loan journey. Ensure the required documents for a student loan are in place to have a seamless experience.
At Avanse Financial Services, we offer education loans with multiple benefits such as 100% finance, quick loan sanctions, flexible repayment options and more. If you have any further doubts, please remember we are just a call away.
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