Education is crucial for personal and professional growth of an individual and also essential for national development. Quality education will empower you to grow academically, be professionally ready and contribute meaningfully to the world at large. However, education is an expensive affair, and therefore, students prefer education loans. Let’s understand the education loan procedure in detail.
Key highlights:
- Importance of Education Loans
- Education Loan Procedure
- Procedure of Study Loan - Eligibility
- Procedure of Study Loan – Documents Required
- Student Loan Procedure – Application
- FAQs
Importance of Education Loans
Did you know that the education inflation is around 11-12% making it difficult to access quality education that students such as you so deserve. Hence, many students turn to education loans to achieve their academic aspirations independently without depending on their parents.
Also, student loans come with multiple benefits. When you finance your studies independently, you can earn a self-made badge. Furthermore, when you repay your student loan, you build a healthy credit score. Enhanced credit history is crucial to unlocking several benefits when you opt for other financial products such as a home loan, car loan or credit card.
With a student loan, you can study at your dream university without worrying about the associated costs. Also, there will no longer be a need to liquidate family savings or assets. These family savings can be safe havens in case of any health emergencies or a pandemic.
Education Loan Procedure
As students are first-time borrowers, it is crucial to know the education loan-related nuances, including the application process, eligibility criteria, etc. Therefore, the initial procedure for getting an education loan should start with research to find the perfect financing partner. Some parameters to keep in mind are turnaround time, costs covered, and customer service, to name a few.
Moreover, you need to identify your financial requirements, such as the loan amount you want to borrow and whether you want a secured (with collateral) or unsecured (without collateral) student loan.
Procedure of Study Loan - Eligibility
Once you have shortlisted your lender, you must visit their website to understand the education loan eligibility and documents required to familiarise yourself with the procedure for taking an education loan.
- Here is the 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
- Students can apply if they:
- 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
Procedure of Study Loan – Documents Required
Please be ready with all the important documents before applying, to avoid the last-minute rush. Also, ensure you have soft copies of all the documents just as a backup.
- Here are some essential documents you should be ready with:
| Documents | Applicant | Co-Applicant |
|---|---|---|
| 2 Colour Passport-sized Photos | ✔ | ✔ |
| Photo ID | ✔ | ✔ |
| Residence Proof | ✔ | ✔ |
| Date of Birth Proof | ✔ | ✔ |
| Signature Verification | ✔ | ✔ |
| Academic Documents | ✔ | |
| Proof of Admission | ✔ | |
| Fee Structure | ✔ | |
| Income Proof | ✔ | |
| Collateral Documents | ✔ | |
| 8-month Bank Statement | ✔ | |
| Relationship Proof | ✔ |
Student Loan Procedure – Application
Nowadays, new-age financial institutions such as Avanse Financial Services have moved the application process online. So, you can apply for a student loan from the comfort of your home. This makes the procedure for taking an education loan super seamless.
At Avanse, you can apply in 4 easy steps:
- Fill out the online application available on our website.
- Speak to our education loan consultants.
- Share the required documents.
- Receive the student loan if you tick all the boxes.
Also, please remember that when you apply for a student loan, your lender will evaluate your student profile to determine your employability potential. Therefore, parameters such as your academic performance, entrance exam scores, and continuity in your education, to name a few, will be analysed. Your co-applicant’s financial background will also be examined. If you meet the criteria, the student loan will be approved.
Also Read: Education Loan Disbursement: What Students Must Know
FAQs
1. Can you get 100% finance for your education?
Yes, at Avanse, we offer 100% finance that covers the holistic cost of education, including tuition fees, accommodation costs, travelling expenses, living expenses, and other education loan-related expenses.
2. Can you get an education loan of 25 lakhs without property?
At Avanse, we offer both secured and unsecured student loans. You can choose between the two based on your financial requirements. The amount will depend on several factors, such as your course fee and the potential costs of living abroad. You can try our Education Loan Eligibility Calculator to understand the approximate loan amount you are eligible to borrow based on your current finances.
Now that you know the procedure to get an education loan, you can start planning your academic journey. We offer education loans for abroad studies as well as student loans to study in India.
We have launched an Avanse Freedom Offer, a special, limited-period initiative that provides attractive interest rates on education loans for students planning to study abroad. Interest rates to study in the US start at just 9.99% and for other overseas destinations start at just 10.5%. This offer is valid only till 31 August 2025. If you have any queries, please feel free to contact us.
