Studying abroad is an exciting experience, and considering the rising cost of education, taking an education loan to study abroad is a smart choice. Not only does it help you fund your overseas education, but it gives you tax benefits as well. More and more students are choosing to take an education loan for an easy transition and peace of mind. However, as a first-time student applying for the loan, there are certain parameters you should keep in mind. These can be loan eligibility, the application process, and the list of documents required.
One of the most crucial steps in applying for and getting an overseas education loan is arranging the necessary documents. Having the required documents ready beforehand not only helps you smooth the overall process but also builds your credibility, enabling lenders to assess your profile efficiently. In this article, we will discuss the list of documents required for education loan, for the applicant as well as the co-applicant.
List of Documents Required for Study Abroad Loans for Applicant (Student)
First and foremost, as a student and a loan applicant, you will need to have your personal and academic documents ready. Here is a list according to categories.
Personal Identity Documents
Submitting valid identity documents will help the bank confirm your nationality, age, and official records. The documents to be kept in handy are:
- Aadhar Card
- Passport
- Voter ID Card
- Driving License
- PAN Card
Address Proof Documents
Address proof is required as a form of communication. Make sure it is the same on all the documents.
- Electricity Bill
- Water/ Telephone Bill
Admission or Offer Letter
The most important requirement for getting an education loan is proof that you have been admitted to a recognized University or Institution. Think of it as one of the essential education loan eligibility criteria. Banks will only lend money if they are sure that you have a confirmed seat. They also help them understand the total course cost and duration.
- Unconditional Admission Letter from a Recognized University or College
Academic Records
Financial Institutions check academic records to understand if you are serious about your studies and capable of completing the chosen course.
- 10th Marksheet
- 12th Marksheet
- Degree Certifications
- Scorecard of Standardized & English Language Exams (like GMAT, GRE, TOEFL, etc.)
While these are the essential documents, other supporting documents may be required, such as a Gap Certificate (if there was a break in studies) and a scholarship letter (if you have any). Next, let us discuss the list of documents required for the co-applicant.
List of Documents Required for Study Abroad Loans for Co-Applicant
The co-applicant is usually the parents, siblings, or spouse of the student. They are the ones who repay the simple interest amount during the time the student is studying overseas. Hence, Banks need to check their credit history and income. Here are the documents they need to submit.
Personal Identity (KYC) Documents
Banks require the identity and address details of the co-applicant as well. These documents can help you with applications
- Aadhar Card
- Passport
- Voter ID Card
- Driving License
- PAN Card
- Electricity Bill
Proof of Income Documents
Proof of income is required to show that your family can support the study abroad loan repayment if required. This helps Banks or Institutions assess your financial background.
- Salary Slip (last 3-6 months)
- Income Tax Returns (ITR) for the last 2 years
- Form 16 (if salaried)
- Bank Account Statement (last 6 months)
- Business Proof (if self-employed)
We have shortlisted a few types of documents here; however, before applying for an overseas education loan, you must visit the Bank’s official website as well to get the extensive list. In case your loan type is secured and you are pledging collateral, here are the documents you will need to have.
List of Documents Required if taking a Secured Study Abroad Loan
The collateral type of loan requires you to pledge an asset, such as plots, buildings, or liquid securities. Here are the different sets of documents required.
For Plots or Buildings
- Sales Deed
- Registration Receipt
- Allotment Letter
- Chain deed for the last 30 days
- Tax Copy
- Electricity Bill
- Government-approved building plan
For Liquid Security
- For Fixed Deposits - an FD Certificate
- For Insurance Policy - Policy Paper and Surrender Value Certificate
The benefit of taking a secured loan is that you will get higher loan amounts with lower or moderate interest rates. No matter the type of education loan you take, having the required documents ready improves your chances of getting timely approval.
Now that you have a list of documents, make sure you have both digital and physical copies for easy submission and future reference. Throughout the process, regularly communicate with your lender to stay updated on the status of your application and promptly provide any additional information required. In case you need help with starting the loan process or need guidance, feel free to connect with top Education Loan Consultants.
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