Gone are the days when you have to think twice before taking the educational loan in India because of the hardship involved in getting through the whole procedure of education loan. With the rising demand of education loan, banks and financial institutions are coming up with easy and hassle free education loan procedure for the convenience of people. The procedure of education loan is no more irksome and lengthy. Now, it takes a week only to get your educational loan approved.
You can obtain education loan application from website of respective bank or financial institution or you can it directly from the bank or financial institution. After obtaining the application form, you need to submit the completely filled application form with accurate information related to education qualification, personal details, financial income of parents or guardians, occupation of parents or guardians, details of security offered, details of course of study, financial worth of parents or guardians, details of existing loan (if any), etc.
After submission of dully filled application form, the bank or financial institution personnel’s will you and enquire about your academic performance, selected course for study. You need to be confident the course and college for which you are opting for and its future potential of generating income.
Make sure you submit documents like age proof, address proof, proof of clearing last qualification, prospectus of course, letter of admission, income proof of parents or guardians, etc. along with your education loan application to start off the procedure of education loan. The bank or financial institution will verify your enrollment from the concerned institute. If you education loan is above Rs.4 lakhs then you will require collateral security such as papers relating to property to be mortgaged.
For an education loan, a guarantor is mandatory. The guarantor could be an applicant's parents or guardians who take the responsibility for the repayment of education loan in case of any mishap. The bank or financial institution will go through the guarantor’s credit history and also verify the same before sanctioning the loan. After completion of education loan procedure, the loan may be sanctioned or denied.
Once the education loan is sanctioned, you have to sign an education loan agreement with the bank or financial institution. By signing the education loan agreement, you promise to repay the loan. The agreement also includes important clauses related to yours rights and responsibilities as a borrower.
After completion of formalities, the bank or financial institution will disburse the amount for the payment of college fee and other education related expenses. The bank or financial institution generally issues cheque in the name of college in which the borrower is taking admission and not in the name of borrower.