Education loans are now indispensable due to the soaring costs of education. Luckily, many national banks and financial institutions extend student loans to both domestic and international universities. To initiate the application process for an education loan, you must adhere to the prescribed procedure and meet the necessary eligibility criteria.
Validating your identity, address, and financial standing with essential documents is imperative. Below, we outline the documents necessary for an education loan application.
Ensuring the timely submission of these documents is crucial for a seamless application process. Additionally, it’s vital to select the bank offering the most suitable education loan tailored to your financial requirements before proceeding with the application.
Indian Banks Education Loan Documents Required- Overview
| Category | Documents Required |
| Identity documents | – KYC |
| – Citizenship | |
| – Regional domicile | |
| – Residence proofs | |
| Academic Records | – Last qualification mark sheets, score card, degree or diploma |
| – Latest admission proofs | |
| – Basic qualification records (HSC/10th/12th passing records) | |
| Financial documents | – Bank Statements |
| – Income Tax documents | |
| Collateral documents | – Documents of ownership of asset |
| Generic admin. documents | – Application form |
| – Guarantee forms | |
| – Subsidy application forms |
Standard Documents Required for Education Loan for Studies Abroad or in India
Please take note of the list of education loan documents required by both private and government banks in India. While original documents are not necessary, submitting photocopies of all original documents is mandatory.
- Fully completed and signed Loan Application Form
- Photograph on the application form
- Valid Passport (mandatory requirement for admission in a foreign country)
- 2 latest colored passport-size photographs of the applicant and co-applicant. (The photo should have a clearly visible face and forehead with a light background. It must be a clear photograph with no hijab, sunglasses, or cap. Sikh applicants can wear a light-colored turban.)
Student’s Academic Record:
- Board mark-sheet/Passing Certificate for classes 10 and 12
- Marksheet/Certificate for subsequent years of education (e.g., B.A, B.Tech, B.E, B.Sc, M.A, etc.)
- Mark sheets of any entrance exams taken (e.g., GRE, TOEFL, GMAT, CAT, etc.)
- Any scholarship documents received
- Copy of the Offer Letter/Admission Letter from the College/Institute in India or abroad
- Fee structure and schedule of the College/Institute
- Receipts for any payments made
Documents for Identity Verification:
KYC Documents:
- PAN card
- Aadhar Card
- Driving License
Address Proof:
- Aadhar Card
- Current House lease agreement
- Valid passport
- Valid water/electricity/LPG bill
- Voter’s ID card
Documents Required for Student Loan Co-Applicant/ Guarantor:
When applying for a student education loan, one must provide details of a co-applicant or guarantor (typically parents or a family member) who can repay the loan if needed.
Primary Co-Applicant:
If the applicant cannot repay the loan, the primary co-applicant—who could be the applicant’s parents, spouse, sibling, or guardian—is responsible.
Guarantor:
The guarantor pledges to repay the student loan if neither the applicant nor the co-applicant can, especially if no collateral property is available.
Financial Statement Related Documents
The necessary documents for an education loan pertaining to financial aspects are as follows:
For Self-Employed/ Business/ Pensioners:
- Proof of turnover (Services Tax/ GST return statement of business/ Latest Sales Tax)
- Income Tax returns verified by a CA for the past 24 months
- Proof of Qualification for Self-Employed individuals (Not mandatory for all banks)
- Proof of retirement along with pension certificate for Pensioners
For Employed/ Government or Non-government Service/ Salaried:
- Form 16 and ITR returns for the last 2 years
- Salary slips provided by the employer for the past 2 months
- Salary computation statement from the current and previous year’s employer
General Documents:
- The academic fees demand letter
- Copy of bank statement/ bank passbook
Documents Needed for Education Loan Disbursement
After your education loan is approved, you’ll need to provide the following documents:
- Academic progress report from previous semesters
- Completed disbursement request letter
- The institute’s payment receipt from the previous semester
- Visa and SWIFT advice for education abroad
Additionally, the bank may request further documentation. Make sure you have all the necessary documents ready before applying for the loan to streamline the process and avoid delays.
Note:
Please note that these documents are subject to the financial lender’s discretion, as they are standard or generic documents, and the lender may also request specific additional documents.
Conclusion
We trust that the information provided on education loans in India in this blog has been valuable to you.
Obtaining an education loan, especially as your first loan, can contribute to building a robust credit score. Timely repayment of the education loan without any defaults can simplify the process of obtaining future loans.
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Frequently Asked Questions
What constitutes proof of income for an education loan?
Proof of income typically includes salary slips from the last three months or a salary certificate, a copy of Form 16 for salaried individuals, IT returns for non-salaried applicants, and six months of bank account statements from the co-applicant or guarantor.
Can a student secure a loan without parental consent?
For full-time courses, a student must have a co-applicant, who can be a parent, guardian, spouse, or parent-in-law (if married), with a steady income. A strong academic record facilitates faster loan approval.
Is a gap certificate mandatory for an education loan?
No, it is not required. However, students must provide a satisfactory explanation to the bank for any gap in their studies.
Are original documents necessary for an education loan?
Original documents such as certificates of completion for a three- or four-year degree (if applicable), certificates of graduation, records of grades or diplomas, past scholarship and award records, and specialized education or professional training certificates may be required.
