Public and private education loans are sanctioned on valid documents. Therefore, it is essential that study abroad students must know about the documents required for education loans. These documents include proof of identification; academic transcripts, and proof of income. In addition, lenders also ask for collateral documents for secured loans. Additionally, applicants also need to produce generic administration documents for loan approval.
Both nationalised banks and private banks need these documents for loan sanctioning. Besides, non-banking financial companies (NBFCs) and international lenders also ask for identification and financial documents. It is therefore important that students compile all documents before filling out the loan application.
Furthermore, public and private banks, NBFCs, and international lenders also require the financial documents of co-applicants for verification and quick approval.
List of Documents Required for Education Loan
Students applying for government loans by the Indian government are required to furnish the below-mentioned documents:
Proof of Identification
Initially, as proof of identification, the applicant and co-applicant need to produce the following documents:
- KYC documents: Driving License, PAN Card, Aadhaar Card
- Proof of Address: Passport, Voter ID, Electricity/LPG/Telephone bill (recent), current house documents
Academic Documents
In addition, study abroad students have to submit the following education-related documents required for education loans:
- Classes 10th and 12th marksheets
- Marksheet of bachelor’s degree, if going for master’s courses abroad
- Diploma, if any
- Scholarship certificate, if any
- Proof of admission to a university abroad
- Fee structure of the enrolled foreign university
Proof of Income
Furthermore, these documents are required to support the loan repaying capacity of the beneficiary and the co-signer.
- For Co-signers who are self-employed/pensioners/business owners: Income Tax Return (ITR) of the last 24 months for business owners; Proof of Retirement (for pensioners); Proof of turnover for business owners
- For salaried co-signers: Form 16 for last 2 years; Current and former employment letter; Salary slips of last 2 months
Collateral Documents
Besides, students applying for secured loans have to submit the following documents:
- For Loan against Recurring Deposit (RD)/Fixed Deposit (FD): Receipts and Interest Statement of RD/FD
- For Loan against any immovable property such as a house/land: Property tax statement; Property deed/NOC from builder or society; Allotment letter by any government authority
- For Loan against Shares/Securities/Debentures: Photocopy of PAN and De-Mat account statement
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