The step-by-step process of applying for an education
                     The step-by-step process of applying for an 
education loan
 Education loan is a reliable investment because it comes with an 
assured return. Since education is getting expensive day by day, a loan is 
the most feasible option to not burden the parents or the guardians. 
Those who cannot afford to meet the expenses of higher education 
must apply for a loan. The return process for an education loan may 
seem daunting as it requires a lot of time and effort. However, over the 
years the government in need to promote higher education has 
simplified the process.
 With basic guidance and care from the loan providers, a student can 
complete the loan process without any complications. The application, 
approval, repayment process, and disbursement may vary amongst 
different financial institutes; the basic procedure is simple and is 
common to all study loan providers.
 Study loan package and eligibility
 A typical education loan will include the tuition fee of the institute 
and other concerning expenses like food, accommodation, and exam 
charges.
 The eligibility criterion to apply for an education loan is the student 
has to be enrolled at an authorized college. Parents, guardians, 
siblings, or spouses may also apply on behalf of the student. The loan 
will be given to the person who wishes to pursue higher education in 
his/her home country or to a college abroad. The interest amount for 
domestic or international colleges varies from bank to bank.
 
        The step-by-step guide
Following is the step-by-step process of applying for an education loan
The loan application form
 The loan application form will require documents such as two passport-size photos, 
graduation, higher-secondary passing certificate, or mark sheets.
 KYC documents such as voter Id card, PAN card or Adaar card, address proof, and age proof.
 Signature proof.
 Parents or guardians’ income proof.
 Collateral proof – Documents for immovable property or FDs.
 Passport if willing to study at a foreign university.
 Schedule of the course expenses.
 A scholarship letter.
 Applicant’s migration proof.
 
 Personal discussion
 Once the filling of the application form is done, the candidate will be 
asked to appear for a personal discussion with the bank employee. 
The interviewer will ask several questions regarding the person’s 
academic career and performance.
 Approval or denial of the loan
 A guarantor is necessary for an education loan. The applicant’s 
parents or guardians could be the ones. The bank will conduct a 
thorough check on the guarantor’s monthly income and financial 
history. It is only after that that the bank will decide on approving or 
denying the loan application.
 Disbursal of the loan
 When all the formalities are done, the bank will disburse the loan for the 
candidate. There are some banks and financial institutes that pay the 
institution fee directly to the concerned institute.
 
 The repayment policy
 Students who acquire a job after the completion of the course can start 
repaying the loan amount. Some banks provide a relaxation period of a 
few months till the candidate secures a desirable job. The repayment 
period is between 5 to 7 years, depending on the bank and the interest 
rate.
In conclusion
 In conclusion, it can be said that candidates applying for 
study loans in India or abroad must check for pre-payment bank 
charges and late payment EMIs. Education loan is usually given to 
those students who have a good academic record. If the school and 
college mark sheets of the student show vibrant colors, acquiring a 
loan becomes much simpler.
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