This article shows you how an engineering student can get education loan. It also shows you the necessary things done by the student side, college side and also at the bank side. before that you just know How to get education loan in India.
As an engineering student if you are in need of education loan the first step you need to do is to approach the bank and look for the dealer who is helping you and making you understand the students loan. If you don’t feel comfortable in visiting the bank directly, you can visit the bank’s website online. The details will be furnished clearly in website.
Then the next step is to prepare documents. You need to submit the admission proof ensuring that you have acquired admission for that particular course in the institution, ID proof(voter ID card), age proof (date of birth certificate or 10th mark sheet), residence proof(ration card), mark sheet right from 10th standard. Once after verification is done successfully, the bank sanctions your loan. But there is an Eligibility criteria for getting Education Loan.
The next step is that you need to approach your college institution and ask for fee structure. Then you should also provide a Bonafide certificate i.e., a proof indicating that you are the student of the particular institution. These are the things which you should ask for from your college.
The last step is that you need to submit fee structure and Bonafide certificate to the bank. Now almost all banks ask for a co-applicant. So you need to provide co-applicant who can be your sibling, an employed or self-employed person. Some banks may also ask for PAN (Permanent Account Number) card as an address proof. Then the co-applicant should also submit the residence proof such as ration card, ID proof such as voter ID card, driving license, bank pass book etc.Do you know Who can use Education Loan?
Then the co-applicant should also provide financial documents such as the pay slips for the past three to six months along with their passport size photographs. Normally in banks, both for studies in India and abroad if the loan amount required is around Rs. 4 lakhs they are not asked for security related documents. If the loan amount is between Rs. 4 lakhs and up to Rs. 7.5 lakhs the student is asked for collateral security in the form of third party guarantee. Then if the loan amount exceeds Rs. 7.5 lakhs some banks may even ask for 100% security in the form of some immovable assets. Once after the successful completion of course a student should repay the amount along with the interest within 5 to 7 years.
Thus these are various phases involved in getting an study loan by an engineering student.
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