Lakhs of students opt for education loans in India every year. If you wish to do the same to finance your higher studies abroad or in India, you should be aware of a few steps that can help you select an affordable education loan. This article five steps that students must follow before applying for an education loan in India in 2023.
1. Select your course and search for loans that can finance that course
If you wish to study abroad, you must be sure about your course, its annual fees, and the education loans that can finance it. Even if you intend to pursue higher studies in India, you must know your college fees.
2. Analyse education loan interest rates and use an EMI calculator
You must know about your loan’s repayment procedure before applying for it. You can gauge your affordability of an education loan by using an EMI (Equated Monthly Instalment) calculator. IDFC FIRST Bank’s education loan EMI calculator helps you know the value of your future EMIs. You can start planning for your future expenses by accounting for your loan’s repayment. Additionally, you must choose a loan with a low-interest rate. IDFC FIRST Bank offers an attractive annual interest rate.
3. Select a bank and fill out its education loan application form
Once you have researched and selected your preferred bank, you can fill out the application form. IDFC FIRST Bank offers one of the most accessible and affordable education loans in India. Students can access collateral-free loans worth up to ₹75 lakhs. To fill out its application form, visit the bank’s site.
4. Participate in a personal discussion with a bank executive
After the bank receives your application, it conducts a personal discussion with you. During this discussion, the bank intends to analyze your academic performance in the past, your overall academic record, and the details of the university to which you wish to apply.
5. After selecting a bank, provide the required documents
The documents required might vary depending on the bank where you have applied. However, along with your university’s admission certificate, you should also furnish your ID proof, address and age proof, and KYC (Know Your Customer) documents like Voter ID.
6. Provide the documents needed after the loan’s disbursement
The bank will require you to furnish some documents after your loan’s disbursal too. You must submit a semester-wise academic progress report, a payment receipt copy of the previous semester, a disbursement request letter, and a copy of your Visa in case you are studying abroad. The bank might also require you to submit a copy of your SWIFT advice form.
Applying for an education loan is a long procedure that requires a lot of analysis on the way. Be sure to visit your bank’s site and note all the documents that you will need while applying for the loan. Taking photocopies of your original documents in advance is also recommended.
