which documents required for education loan: In today’s world, as education costs are increasing day by day, education loans became very important for students to complete their education, significantly higher education. However, that education is worth every penny you spend. Fortunately, many banks provide education loans for many abroad and Indian universities.
And applying for a loan is not an easy task, students need to be very careful. To provide education loans, banks have a number of terms and conditions. This mainly includes the set of documents, so before going to your bank, look at the documents that are required to take with you.
Proper List of Documents that are Required for Education Loan
Submitting the required list of documents is a very important factor to get hassle-free education loans from banks. Look into the following list of documents that we have provided in a particular order below.
- Documents of Identity
- Documents of Student Education
- Documents of Financial status
- Documents Required for Collateral
- Other Documents Required for Education Loan (Generic Administration)
We will look into the detailed document names that are required for education loans.
Identity Documents Required For Education Loan
When you think of education loans, first anyone asks you about is about your identity. So first you need to provide your identity documents mentioned below. These identity proofs need to submit by both applicant and co-applicant.
Address Proof:
- Aadhaar Card
- Voter’s ID card (not accepted by all banks)
- Current house lease agreement
- Valid electricity/water/LPG bill
- Valid passport issued by GOI (Government of India)
- Magistrate/Gram Panchayat affidavit (not applicable for all banks)
KYC Documents:
- Aadhaar card
- Driving License
- PAN card (Without Photo will be Rejected by some banks)
Regional/Domicile Proofs:
- Gazetted affidavit (not applicable for all banks)
- Permanent residence certificate issued by competent State/UT authority
- Certificate of domicile issued by district magistrate office
Education Documents Required For Education Loan
Academic records are needed for the banks to decide the interest rates for the loan they are offering. With that, the bank will get the trust to provide you with a loan. So, take the past and present education documents that you have with you. Below is the education documents list needed for an education loan.
Past Academic Records
- SSC/10th Class or equivalent mark sheet/passing certificate
- HSC/12th Class or equivalent mark sheet/passing certificate
- Diploma passing certificate/record of marks/diploma certificate
- Graduation degree (it may be 3-year or 4-year), mark sheet/passing certificate (if applicable)
- Records of the past etc
- Special education/ Professional courses/Certificate courses passing certificate
Present Academic Documents Records
- Admission Proof: conditional offer letter/permanent admission letter/Admission letter/bonafide certificate/seat allocation certificate
- Records/documents of academic fees breakup
- College/University/Institution placement records (not mandatory for all banks)
Foreign Education Academic Proofs:
- I-20 form for study in US academic institutions
- Entry permit (if applicable for respective country)
- CAS Letter for UK education loan applicants
- Exchange student form or exchange visitor form of the respective country.
- Qualification documents for GMAT, GRE, IELTS, TOEFL, etc
Required Documents of Financial While Applying For Education Loan
When a student thinks of taking an educational loan, one should prove their financial ability too, as the bank needs to get trust that you will definitely pay. Applicants who are from a business background/self-employed sector also apply for this educational loan.
Look into the Finance documents required for an education loan.
General Financial Documents:
- Bank passbook copy/ Bank statement (last 6 months or more)
- Academic fees demand letter (issued by the academic institution)
Financial Documents for Self-employed/Business/Pensioners
- Proof of turnover (latest Sales tax/Services Tax/GST return statements of business)
- IT (income tax) returns approved and verified by CA: at least 24 months
- Audited P&L (profit and loss statement) of business for the current and previous financial year
- Proof of retirement and pension certificate (from requisite authority)
- For self-employed, proof of qualification (not necessary for all banks)
Financial documents for employed/govt.-non govt. service/salaried
- Salary computation statement issued by the employer for the current and previous year
- Form 16 and ITR returns for at least 2 years
- Salary slips issued by the employer (at least recent 2 months)
Also Check: How to Get Education Loan After 12th
Collateral Documents Required For Education Loan
Collateral documents are required as there is a high demand for loan amounts. Collateral doesn’t only act as a physical guarantee of loans but also banks reduce the loan interest rates. So make sure you have all the below collateral documents or not.
Loan against securities/shares and debentures
- PAN card copy (mandatory)
- De-Mat account statement (last 6 months at least)
Latest property tax statements, maintenance tax/bill
- Loan against deposits
- NOC from society/builder
- Original FD/RD receipts
- Interest statement of FD/RD
Loan against a land/house/property
- Chain of sale deed/property deed
- Allotment letter by Government Authority/Municipal Corporation
More Other Documents Required For Education Loan
Look into the documents that are required below for applying for an educational loan.
- Subsidy application forms
- Third-Party Guarantee application
- Education loan application form
Post-Sanction Documents that are Required For Education Loan
Following are the documents that you need to submit for an Education loan after your loan is sanctioned because only by presenting these documents you can get pre-paid education loans, Loan disbursements, Loan change terms, and many more it is useful.
- Letter of Academic fees demanded (every year/ or every payment cycle as demanded by the institution)
- Affidavit of extra academic demands such as laptop, equipment, two-wheeler, research, academic tour, etc.) duly sanctioned/attested by academic authority
- Outward remittance request in case of study abroad
- Copies of Academic fee receipts and payments made via education loan
- Transcripts of the applicants’ academic progress
Related: How to Get an Education Loan From the Government
FAQs on Documents Required For Education Loan
- Which type of document is required for an education loan?
Student applicant type of document is required for an education loan.
- How much education loan can a student get?
For a student, the max limit of an education loan is Rs.125 Lakhs to study in India, but if the student going to study abroad max limit of the loan is Rs.150 Lakhs.
- Can poor students get Education loans?
There is a chance but it’s difficult to get an education loan unless students show remarkable performance.
Key Takeaways
We are hoping that the knowledge we have shared on education loans to study in India or Abroad. Students can apply and get loans approved. Stay tuned to our site for other articles, such as Which Bank Has Lowest Interest Rate on Education Loan, How to Apply for Education Loan for Abroad Studies, and so on.