Higher studies both in India and abroad are increasingly becoming costlier, and not all parents can afford to send their children, even if they are intelligent and merit it, to good institutions to pursue them. At the same time, it is not possible to build a good career without quality higher education. However, a lot of changes have been taking place on the education loan front that make it easier to get a loan for higher studies and make your dreams come true. For one, banks have made the process of getting an education loan easier, and secondly, they have expanded the range of educational institutions for which students can take education loans. Education loan Interest rate is generally lower for education loans than for other kinds of loans, and besides, students get a moratorium period before they have to start repaying the loan in EMIs. Calculate education loan interest rate and EMIs on your loan with the help of online calculators.
Factors That Banks Consider Before Disbursing Education Loans
The main factors that financial institutions take into account while sanctioning education loans are as follows:
- The educational qualifications of the student and their academic merit to date.
- Banks also consider the value of the course for which the student wants an education loan. The course should have a good potential for the student to make a profitable career after finishing studies.
- Another important factor that banks consider is the reputation of the institution where the student wishes to study. The higher the repute of the institution, the higher the chances of the student getting an education loan.
- Banks also check whether the student, or their co-applicants and guardians, can offer any collateral security for the loan being applied for.
General Documents That Banks Require to Grant Education Loan
Banks grant loans both for higher studies in India and abroad. The documents required to be provided to get a loan for studying in India are as follows:
- Application form duly filled and signed
- School or college leaving certificates along with their mark-sheets
- At least two passport-sized photos
- Birth certificate, ID and address proof
- Proof of income of parents or guardians
In addition to these, students who wish to avail a loan for studying abroad need to provide the following documents:
- Proof of admission to the institution and course applied for
- Details of course expenses
- Proof of scholarship, you have received one
- Six months’ bank statement of parents or guardians
Get an Education Loan from PaySense Instantly
PaySense has built versatile web and mobile apps which makes it extremely easy to avail a loan, whether it is for education or buying a vehicle or home, or for any other personal need. On these web and app platforms of PaySense, It is now possible for you to avail a loan of up to INR 2 Lakhs online and from within the comfort of your home. They even have a education loan interest calculator for you to readily calculate how much loan you can afford to take as per your repaying capacity.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs