Education is for a life and lifestyle.
Every Indian should get educated to be a better individual and a better Indian. India is the most populated country and if every Indian is educated and skilled, no sooner India can become a super power in the world. Why does China play an important role in the making of any product, it is because every individual is educated and it is mandatory for every child to get best education. When India has skill, population and ability to do anything, it is parents right to ensure their child is educated to the extent the their child’s ability is portrayed.
Teach the best of living and get the best of skills. This is the only motivation a parent can ever give to their children. Government is being very supportive introducing multiple schemes for success of the youngsters. Banks are being extremely supportive to fulfil the Government’s idea in educating and enabling India as a super power. Youngsters should strive to reach their interests and claim an opportunity to prove themselves.
Education loan does provide such support system to achieve the goals of an individual irrespective of the course they choose and the institute they choose. None of the banks in India can reject a education loan file. Hence, let us understand now how to apply for education loan and what are the documents you need to get the maximum loan amount for education loan.
Step by Step Process for Education Loan –
Step 1 – Search for the appropriate bank.
Every bank has their own product for the education loan. Each bank has their own interest rate. All you need to understand is you get the Right Education Loan at Right Time. Don’t waste time in roaming all around and visiting all the branches. Search online, search Loanyantra and talk to them for the right product.
Step 2 – Documentation and Application Form Filling
This is the most important step for any loan.. Especially education loan needs all your certificates along with your KYC. Take time for documentation. If this is done, half process is done. At the end of the article find an example about documentation needed by one of the major banks in India. More or less, every bank asks for the similar documents. Either download the application form online. Or our executive can come and assist you in filling the form and collecting the documents. Find the sample application form at the end of the article.
Step 3 – Loan Process Begin.
Once the documents are with the banker, the banker uploads the documents for the approval. Above average student has a chances of getting the 90% of the funding and also a better rate of interest on education loans. Everything is confirmed by bank to your email. Constantly check your mail for the details.
a) Amount the bank can give as education loan
b)The rate of interest applicable to you
c) What is the moratorium period.
d) What is the repayment tenure and from when does it start.
Step 4 – Loan Disbursal
Once you get the sanction letter over mail, you can visit the branch for disbursal. The disbursal of the education loan depends on the university you apply to. It varies from country to country. While you search for the college or university abroad, also search for the fee payment details as per the country. For example Australia and New Zealand asks the student to get the loan disbursed before the visa check. Hence, the fee payment schedule plays an important role for disbursing the education loan.
You are free now to fly and achieve your goals.
Documentation Example –
Baroda Education Loan Check List
List of Documents to be submitted by the Applicant/Co-Applicant/Guarantor:
- Application Form duly filled-in and signed by Student, Co-Applicant & Guarantor.
- Form No. 135 also to be duly filled-in by student, Co-Applicant & Guarantor
- Two Passport Size Photographs of Student/Co-Applicant/Guarantor.
- Student ID from Vidyalakshmi portal (www.vidyalakshmi.co.in)
Employment/Business Proofs of Co-Applicant/Guarantor.
[3 months’ Salary Slips, 3 years Form 16 and 6 months Bank Statement (if employed)].
[3 years ITRs&Computation, 6 months Bank Statement, Business Proof (if in Business)].
Personal Identification Proof (Any one): Applicant/ Co-applicant and Guarantor
- Electoral I-Card
- Passport
- Driving License
- PAN Card
- Aadhaar Card
Residential address Proof (Any one): Applicant/ Co-applicant and Guarantor
- Telephone Bill (Land Line)
- Electoral/Voters ID Card
- Passport
- Driving License
- Aadhaar Card
*Passport of the student is mandatory for overseas studies
Other Educational Documents:
- Admission Letter from the University.
- Course Details/Prospectus.
- Fee Details- Fee Break-up & Demand of Fee by the Institution.
- Proof of Academic Records
- 10th marksheet & 12th/ PUC marksheet
- Degree certificate & Semester wise marksheets
- GMAT/GRE/ IELTS/ TOEFL scorecard
Property Documents (If Mortgaged by Parents)
- Complete set of Security (Property) Documents (only if property is to be mortgaged)
- Sale deed / Mother deed (30 years property papers)
- 30 years Encumbrance certificate
- Khata certificate & Khata extract
- Tax paid receipts
- Possession letter/ Allotment letter (if applicable)
- Building sanction plan and layout plan
Professional Documents of Guarantor –
- Employment Letter, 3 months’ Salary Slips, 3 years Form 16 and 6 months’ Salary Statement and Resignation Letter & Relieving Letter from the Employer (if in case the Student(Applicant) is employed).
Extra Charges –
- Processing charges: Rs.11,800 (applicable only for studies abroad)
- Upfront charges: Rs. 8,850 (applicable only if property is to be mortgaged)
- Cheque has to be in favor of ‘Bank of Baroda’
Additionally for takeover of education loans –
- MOTD copy from the bank
- List of original documents kept with the bank
- Loan foreclosure letter
| Particulars | Rate of Interest (for studies abroad only) |
| For listed institutes, Female students | MCLR + 0.75 % (9.50 %) |
| For other institutes, Female students | MCLR + 1.50 % (10.25 %) |
| For listed institutes, Male students | MCLR + 1.25 % (10.00 %) |
| For other institutes, Male students | MCLR + 2 % (10.75 %) |
*MCLR as on 3/3/2019 is 8.75%
- Moratorium Period: Course Period + 1 year
-
- Repayment/ EMI will start after the moratorium period
- Servicing of interest during moratorium period is Optional only
Application Example
Here are the details the application asks for. Pretty much it is same for any bank and here you go with Bank of Baroda’s application form details.
Bank of Baroda
(Head Office: Mandvi; Baroda)
Branch: ………………………………………
PARTICULARS TO BE SUPPLIED BY THE APPLICANT FOR ADVANCES
I give below the particulars of myself, my family and my Assets & Liabilities as at …………………
1. Nam in Full: …………………………………………………………..Age: ……………………..
2. Father’s/Husband’s Name: ………………………………………………………………………
3. Residential Address:
PERMANENT PRESENT
……………………………………………………… ………………………………………………………
……………………………………………………… ………………………………………………………
……………………………………………………… ………………………………………………………
……………………………………………………… ………………………………………………………
4. Telephone Numbers: Office/Shop: ………………………… Residence: …………………….
5. Occupation/Line of business:
a. If in service
i. Name of Employer: …………………………………………………………….
ii. Address: …………………………………………………………………………
iii. Designation: …………………………………………………………………….
b. If in business/profession:
i. Name/s of the firm/company: ………………………………………………….
ii. And its Address/es: …………………………………………………………….
iii. Line/s of activities: ……………………………………………………………..
iv. Since when established: ………………………………………………………
v. In which capacity he/she is representing: ……………………………………
6. Annual Income: Rs…………………………………………………………………………………
7. PAN (If an Income Tax Assessee): ………………………………………………………………
- 8. DETAILS OF ASSETS
a. Details of immovable properties (held in own name/joint name)
i. Nature of properties (Please tick whichever is applicable)
1. Plot of Land
2. Agricultural Land
3. House/Godowns
4. Others
ii. Location:……………………………… Survey/House No.: ………………..
Area/Location: ……………………………………………………………………………
Village/Town: ……………………….. District: …………………………………………
iii. Property in whose name: ……………………………………………………………….
iv. Cost (at the time of purchase): Rs…………………………………………..
v. Present estimated market value of the property/ies: Rs…………………….
vi. Whether encumbered/unencumbered:
Partially encumbered. If encumbered,
Give details viz. with whom,
Consideration & major terms & conditions
b. DETAILS OF MOVABLE PROPERTIES IN MY NAME
i. LIC Policies
- Policy No.
- Date of Issuance of Policy
- Sum Assured Rs.
- BranchName
- Annual Premium in Rs.
- Premium paid up to what period
ii. SHARES/DEBENTURES ETC.
- Name of the Company
- Total No. of shares held
- Certificate No.
- A/C No.
- Total Amount Rs. (Face Value)
- Whether fully paid (Yes/No)
- Current Market Value Rs.
iii. TERM DEPOSITS
- FDR/RD/YSJY A/c No.
- Date Fvg. Amount Rs.
- Name of Bank & Branch
- Due Date Maturity Value Rs.
- FDR/RD/YSJY A/c No.
- Date Fvg. Amount Rs.
- Name of Bank Branch
- Due Date Maturity Value Rs.
iv. INVESTMENTS IN GOVERNMENT SECURITIES LIKE BONDS/NSC ETC.
- Bond/Certificate No.
- Due Date of Purchase
- Issuing Office/PostOffice Add. (including Mutual Funds)
- Amount Rs.
- Due Date Maturity Value Rs.
c. Details like Reg. No., type & value of:
Vehicle/s owned by me
d. Capital invested in business:
Name of Firm/Company
(As on latest Balance Sheet Date)
e. Full details of other investments, if any
(i.e. Jewellery, Investment in other firm/s etc.)
f. Total of all assets 8(a) to 8(f): Rs………………………………………………………….
9. DETAILS OF LOANS IN INDIVIDUAL NAME/FIRM’S NAME/COMPANY’S NAME
a. Name/s of the bank/other Institution and its branch: ………………………………………
b. Purpose & amount of loan availed:………………………………………………………….
c. Security & repayment schedule/Rate of Interest: …………………………………………
d. Present balance outstanding: ……………………………………………………………….
e. Liabilities other than to Bank and Fis: ……………………………………………………..
………………………………………………………………………………………………….
10. OTHER DETAILS
Details of personal guarantee given for any
Person/firm. If so, furnish details (i.e. Name of the
Bank/Institution, on whose behalf, amount of
Guarantee, present status of account etc.)
11. PARTICULARS OF
a. LEGAL HEIRS
b. NOMINATION
- Description of Assets (Bank Dep./Co. Dep., Terminal Benefits)
- Bank/Organization AccountCertificate No.
- Amount (at
present/at
maturity)
In support of my above declaration, I enclose
1. Balance Sheet, Profit & Loss Account, Trading Account, Capital Account (Audite/Un- audited)
2. Copy of employment certificate with details of salary drawn
3. Copies of agreement/revenue records/society certificates in respect of land/building/flat
owned by me.
4. Copies of Income Tax/Wealth Tax Returns/Assessment Order.
I declare that:
I am/am not (tick as applicable) a Director in a/any Bank. There is no litigation against me or the
firm/company in which I am the Proprietor/a Partner/a Director.
The name of the firm/Company or the names of Partners/Proprietor/Director of the Firm/Company
is not on the caution list of RBI/ECGC.
The Proprietor/Partners/Directors of the firm/Company is/are not the Directors in any Co-
operative Bank.
I also declare that the above information is complete, true and correct.
Enclosures:
Place:
Date: Signature of the Applicant