How to get education loan after 12th

After completing the 12th grade, there are a few processes and things to think about while applying for an education loan. Here is a detailed guide to help you with the process.

1. Examine and contrast available loan options

Banks and Financial Institutions: Research education loan offerings from non-banking financial firms (NBFCs), nationalized banks, and private banks.

Interest Rates and Repayment Terms: Examine interest rates, terms of repayment, and any additional benefits or unique conditions.

2. Qualification Standards

Academic Performance: Verify that you fulfil the lender’s minimal academic standards.

Course and Institution: Generally, loans are granted for courses approved by AICTE, UGC, or other such organizations, as well as for establishments approved by the relevant authorities.

3. Necessary Records

Gather the required paperwork for an education loan after graduating from high school. These typically consist of:

Identity verification: PAN card, passport, Aadhaar card, etc.

Proof of address: utility bills, lease, Aadhaar card, etc.

Academic Records: Grade 10 and 12 mark sheets, the institution’s entrance letter.

Income evidence includes pay stubs and co-applicants or parents’ IT returns.

Collateral: Some banks may need collateral (fixed deposits, property documents, etc.) for larger loan amounts.

4. The Application Procedure

Complete the Application Form: Fill out the application in the bank office or online.

Submit Documents: Enclose any necessary paperwork with your application.

Personal Conversation: To comprehend your educational goals and financial requirements, certain banks could ask for a personal conversation.

5. Approval and Payment of the Loan

Loan Approval: The bank will approve the loan after reviewing your application.

Loan Agreement: Sign the document outlining the terms and conditions of the loan.

Payment: Typically, the loan amount is paid straight to the school by their tuition policies.

6. Compensation

Moratorium term: Before repayment begins, a lot of education loans offer a moratorium term that is equal to the course length plus six to one year.

Repayment Schedule: Be aware of the EMI structure and begin making financial plans in line with it.

A Successful Loan Application: Some Advice

Keep Your Credit Score High: Verify the co-applicant’s credit history (typically their parents).

Select the Correct Co-applicant: Having a co-applicant with a stable job and good income increases your chances of loan approval.

Clear Documentation: To prevent delays, make sure all documentation are accurate and comprehensive.

Typical Indian Providers of Education Loans

State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda are examples of public sector banks.

Private banks include Axis, HDFC, and ICICI.

The NBFCs include InCred, Avanse Financial Services, and HDFC Credila.

Actions to Take

Choose the Course and Institution: Verify your acceptance into the chosen course and school.

Compute the Loan Requirement: Find the entire cost, which includes books, lodging, tuition, and other associated expenses.

Pick a Bank or Lender: Do your homework and pick the lender with the best conditions.

Prepare Documents: Compile all required paperwork.

Application Submission: Fill out the loan application and send in the necessary paperwork.

Follow-up: To find out more about the status of your application, stay in contact with the bank.

Sign Agreement: After the loan has been authorized, go over it and sign it.

Payment: Make certain that the funds are sent to the educational institution on schedule.