The aspirants of higher education have to face various challenges and financial barriers often stuck with them, especially those having no financial backup. The fees for higher education in India and abroad have been increasing for almost all professional courses, therefore, the education loan bridges the gaps between their dream to success with financial support. However, there are certain terms and conditions as per the amount and eligibility. Therefore, you need to be sure about the loan amount as per your fee structure and other requirements like accommodation fees and other assets like laptops, etc.
How does education loan work in higher education
While entering higher education, whether in engineering, medicine, MBA, law, education, or others, you might have requirements of a higher amount for the college fee and other like accommodation, etc. At that time, you can get an education loan from the bank. There are certain regimes for the fee structure where you can get a loan amount of up to four lakhs without any collateral or guarantor. Whereas borrowing up to seven lakhs needs guarantors like parents, spouses, or others with an account in the bank with some income. Therefore you must decide on the loan amount by calculating all the expenses, and then go for the loan as per the regime. Here it will be clear how does education loans work, and let’s follow some steps for the loan application.
Documents required for the education loan
Marks card and certificate: You must have the original marks card of your previous education. If you are trying for admission to the graduation level, you must have a marks sheet for 10th and 12th. Whereas, while getting admission in the master’s degree, you must have a marks sheet of up to graduation level.
- Fee Structure: While getting admission to any higher education, you get the fee structure from the college where everything is explicitly mentioned. It helps the lender to calculate the required loan amount.
- Seat Allotment letter: While getting admission to the institute or after the counseling process, you will get the seat allotment letter, it is required as the necessary documents.
- KYC: All the identity proof documents like PAN, Aadhar, residential certificate, and other proof issued by the government.
Steps to Apply for an Education Loan
- Visit the website of lenders or go to the bank
- Carry your documents along with the fee structure and all
- Communicate with the executive and apply for the loan
- Get the approval, or wait for the responses
- Feel the form and accomplish all the formalities and finally, get the loan amount in the form of BankDraft
- Submit your fees and continue your study.
An alternate option for the Education loan
While getting an education loan, you might have to face some delay due to some formalities and it can consume your time. Therefore, there are another option for the parents, They can borrow a personal loan for the initial fees i.e. the fees for admission or the first years. It will help you manage the cash at that time. It also helps your child continue their study without any financial interruption. Once your education loan is approved, you can continue with that.
Interest and tenure
The education loan is approved as per the lender’s terms and conditions which may vary from bank to bank. The tenure of the loan is approved based on the course duration, where your repayment starts after one year of the accomplishment of the course. However, you can choose the repayment just after the course if you are capable to repay. In another case, you can also repay the loan at a time to save the interest and repayment.
Conclusion
Overall the education loan is one of the best components to get rid of financial barriers, especially for those having lower financial support. In the current scenario where the fees for higher education are increasing, it’s a fair decision to go for an education loan so that you can continue your education. After the accomplishment of the course and after getting employment, you can repay the amount in EMIs as per your tenure. So, get the loan with all the required documents and use it for your illustrated future.
Disclaimer
The approval of the education loan amount is done after verifying all the documents, the financial status of students, and their guarantee. And ultimately it is based on the lender’s opinion of how much amount they will approve. Therefore, apply with all the documents for approval and follow the lender’s instructions.
