What Documents Are Required For an Education Loan?

Since education loan terms differ from one to another, required documents remain largely the same. The bank needs certain documents to make sure you are a genuine student and are going to study at a reputed university abroad. For education loans, banks require documents from both the student and any co-borrowers. Marksheets, ID proof and admission letter are some documents required for education loan.

So you are planning to take out a student loan to study abroad? You must have the checklist of required documents for an education loan. As a lender, students have to submit some documents along with a student loan application. Banks and NBFCs verify these documents at the time of processing the study loan. Such documents are used to verify the authenticity of the applicants and collateral (if applicable).

Note that the majority of document requirements are the same for the top education loan providers in India, but your bank may ask for additional documents. Academic transcript, passport-size photographs, resident proof, and admission letter are some of the important documents required for an education loan.

Read More:

• Everything You Need to Know About Education Loans
• Education Loan Interest Rates
• How to Repay Student Loans Faster?

Documents Required for Education Loan Abroad 

Indian students applying for an education abroad will have to first complete and sign the loan application form. After that, the applicants will have to attach certain documents to justify their need for funds to study abroad. Following are the papers the applicants would need while submitting an application for a student education loan abroad: 

Residence Proof or ID Proof Documents

Applicants who are applying for education loans to study abroad will have to submit government-issued identification proofs, the acceptable documents are as follows: 

• Two passport-sized photographs 
• Photo ID proof 
• Residence Proof 

Academic Documents for Student Loan

In order to have a background check of the applicant, the academic records will be checked and the documents that are required to be submitted are as follows: 

• Admission letter/Offer letter/CAS
• Score reports of:
  • ELP Test Scores of either IELTS or TOEFL
  • Standardised test scores of GMAT or GRE if applying for a postgraduate course 
  • ACT or SAT if applying for an undergraduate course (also if it is a part of the application process)
• Copy of student visa (if applicable) 
• Mark sheets of the tenth and twelfth board examinations 
• Mark sheets of an undergraduate degree or any diploma/certificate 

Income Documents Required for Education Loan

The following income documents will be required by the bank offering an educational loan to a study abroad applicant: 

• Break-up of the fee
• The last three months' salary slip
• Income tax return for the last two years
• There are finance proofs required from students based on their guardian's occupation and they are as follows:

Collateral Documents Required for Education Loan

In case the applicant or co-applicant wishes to submit collateral property papers, they can submit the following proofs:

• The title deed of the property
• Land registrar's details about extracts of agricultural land
• Latest property tax bills
• NOC from builder for Mortgage
• Official allotment letter of property
• Approved building plan
• Encumbrance certificates 

Applicants should note that no bank either private or public requires original copies of the supporting documents that are to be submitted. The applicants just need to submit their copies and they should be signed and should also be self-attested by the applicant.

Before applying for an education loan, applicants should check Public v/s Private Education Loan Providers and then make their choice accordingly. Also, ensure that they are eligible to apply for a loan to study abroad. Those Indian Banks Offering Education Loans for Studying Abroad with lower interest rates should be considered as well. 

Useful Reads

Note: Students, who wish to study abroad, may get in touch with India’s top-rated loan providers and apply for an education loan through Shiksha Study Abroad.