The cost of getting a higher education is rising daily. Many prestigious institutes offer professional course at competitive rates. This enables the concerned party to pursue their desired studies. Thankfully, many banks and Non-Banking Financial Companies have started offering an education loan for higher studies[VS1] .
The procedure differs from one lender to another. However, many of them follow a simplistic loan process to ensure aspirant’s convenience. It is useful to understand it before applying for one. Here are the steps involved in the process:
Determine the loan cost:The first step involves getting through your desired university/ college. During this phase, you can evaluate the expenses like tuition fees, stationery expenses, accommodation, library or laboratory fees, etc. A student loan covers all these. Hence, it is crucial to consider them for deriving the loan cost. It enables you to look for loan offers to match the same.
Check eligibility criteria: The student loan eligibility criteria help you reachyour potential. You can take the loan yourself, or your parent can take it on your behalf. The factors like your age, merit, collateral submission, your co-applicants credit score, etc., influence your eligibility. It is essential to check these for deciding your loan amount.
Compare lenders:Lenders have varied policies whileoffering an education loan in India. The eligibility requirement and policies change for studies within India and overseas. Hence, it is essential to compare thembefore availing of the loan. Youcan do this by either visiting or calling them up. It is even more convenient to check their websites. You get to know the courses they cover, loan amount terms, interest rates, etc.,in detail.
Application:Once you have finalised the lender, you apply for student loan online. Enter your personal and academic details. The education loan documents like your identity proof, residence proof, educational certificates, co-borrowers income proof, admission letter, collateral papers etc., must get attached with the form. However,education abroad requires a different set of documentation.
Interview: After assessing the application, the lender contacts you for a discussion. You get asked questions on the course chosen, your academic records, the selected institute, etc. They do this to understand your repaying potential after course completion. You must be thorough and honest with your answers to convince the lender.
Approval and disbursal: If your loan gets approved, lenders give a legal document stating the terms. Since you only pay after the course completion, they consider your co-guarantors credit details. You may sign the legal agreement stating you are responsible for paying the loan. After this, lenders directly disburse the loan amount to your university.