Education Loan Documents For Unsecured Loans
Documentation is a crucial part of any loan process. The unsecured education loan process is no different. Many a time, we receive multiple queries regarding the various education loan documents in the unsecured education loan process. If you go through the previous Loanflix episodes, you may come to realise that we have explained the entire checklist of education loan documents for collateral education loans in episode 4. This article highlights the education loan documents mostly asked by lenders for non-collateral education loans.
The 30th episode of Loanflix will tell you all about the documents required for education loan without collateral. Our education loan expert, Damini, speaks about the different documents required for unsecured education loan in India.
For the ease of understanding, we have divided the education loan documents into different categories. Loan applicants, as well as their co-applicants, are required to submit different sets of documents. The education loan documents that are required by NBFCs from co-applicants for unsecured education loan will be listed first.
Documents for Education Loan Without Collateral: List of Education Loan Documents For Co-applicants
The list of education loan documents for co-applicants is again different for co-applicants who are in regular service and those who run their own business. Since the list of documents required for unsecured education loan from co-applicants with regular jobs is short, we will be enlisting the same, first.
Education Loan Documents to be Submitted by Salaried Co-applicants:
Co-applicants who are salaried are required to submit the following list of documents that act as proof of income.
- Salary slips of the previous three months.
- ITR filing receipts of at least the previous two years.
- Print out of their bank statement of at least six months.
Education Loan Documents to be submitted by Business-owning/Self-employed Co-applicants
The documents mentioned in the following list are to be submitted by your co-applicant if the sole source of income is a business owned by them.
- Bank statements for the previous six months.
- ITR documents of the previous three years.
- Business proof: Profit/Loss statements, GST registration, etc.
- Co-applicants who own a registered business venture have higher chances of getting education loans, as they will definitely be able to provide their profit/loss statements.
Points to remember before naming your co-applicants:
- Co-applicants running a small-scale business, for example, selling sarees from their own homes and have not registered their business, can provide photographs of the stock being sold by them, proving the same, to the lending banks as proof of income. This one of the primary documents for education loan without collateral.
- Individuals running well-organized businesses have a higher chance of getting unsecured education loans due to the easy availability of education loan documents showing the proof of income.
- While naming co-applicants for unsecured education loans, remember that only individuals who are immediate family members and also possess the above-mentioned education loan documents should be given the first preference.
- When it comes to unsecured education loans, it is better to name salaried co-applicants possessing the documents required for unsecured education loans, as co-applicants.
Are you someone who is confused about who to name as your co-applicant for your unsecured education loan? You may seek our help by requesting a callback from our team. Moving on, let’s take a look at the list of education loan documents required by NBFCs from loan applicants.
Documents Required for Unsecured Education Loans From Loan Applicants
Unsecured education loan providers often pay close attention to a loan applicant’s academic documents while considering their request for an unsecured education loan. Students are required to submit the following education loan documents to NBFCs for unsecured education loans.
- High school and middle school exam certificates, i.e, the passing certificates for 10th std, 12th std.
- Degree certificates. If you have just written your final exams and do not possess your final year degree certificate, then you can get your loan approved on the basis of your pre-final year/semester mark sheets.
- Test score-cards of all the eligibility tests you have passed (GRE, GMAT, IELTS, TOEFL, SAT, etc.)
- The admit letter or letter of offer, received from your university abroad. Take note that for some countries, NBFCs approve of education loan sanctions just on the basis of your eligibility test scores.
- For those who plan to borrow an education loan to fund their higher studies in the US, I20 form is not a mandatory document for the loan approval in NBFCs.
In case if the loan applicant is a working professional then the following income-related documents are to be submitted by them:
- ITR documents of up to three years or for whatever duration the loan applicant has worked.
- Previous three months’ salary slips.
- Work-experience letter.
If you are still seeking the exact list of documents asked by NBFCs for unsecured education loans, do not hesitate to get in touch with the financial team of WeMakeScholars for guidance and assistance with this or any other steps involved in the unsecured education loan process.
Basic Education Loan Documents: To Be Submitted by Applicants as well as Co-applicants
Apart from the academic documents of the applicant and the income-related documents of the co-applicant, there are certain common documents that are to be submitted by both, the loan applicants as well as their co-applicants.
KYC (Know Your Customer) Documents to be submitted at NBFCs
- Passport size photograph
- Pancard Copy
- Aadhaar Card Copy
- A copy of the loan applicant’s (student) passport.
Any education loan process, especially for unsecured loans, cannot go smoothly in the absence of the correct education loan documents. Being aware of the documents required for education loan in India can prove to be a blessing for those who are confused about the same. You might come across numerous opinions when it comes to gathering information about documents required for education loan in India. Through this article, our team at WeMakeScholars wishes to convey the correct information about the exact list of documents required for education loan without collateral. By the end of this article, you should be able to organize all the documents required for education loan without collateral in NBFCs.
Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s at free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others