✓ Income Proof for Self-employed Co-applicant/ Guarantor
✓ Documents for education loan disbursement
It is very difficult and frustrating when you have collected your documents and you’re holding them in your hands, yet you are unsure if they are sufficient or not. What if the bank requests for more documents? We can understand your dilemma; almost all students applying for an education loan face similar issues. However, from now onwards, you don’t have to worry. This is your final destination in your search for the complete list of documents required for an education loan. In this article, We will provide you with each necessary document and even offer tips if you don’t have all the required paperwork. We’ll guide you on what to do and what not to do in that scenario.
Before moving further, let's first understand the various types of loan that lenders provide. Basically there are two types of loan:-
Getting an education loan requires specific documents, here is the list of common types of education loan documents that are required to ease the process of your loan and get the sanction faster without any complications.
(NOTE- Along with all these documents, applicant and co-applicant must have to submit recently clicked two passport sized photographs and current address proof, some banks may ask for additional documents but no need to worry, you can just simply reach out to WeMakeSchloars financial officers, they will help you out at any point of time)
When you apply for a loan for your education, you might need someone—like your parents, siblings, or other family members—to be your co-applicant or guarantor, depending on the bank and the type of loan.
A co-applicant or primary co-applicant is the person responsible for repaying your loan if you cannot. Generally, banks accept your parents, spouse, parent-in-law, or guardian as primary co-applicants.
If your primary co-applicant doesn't have their own assets to pledge, you can pledge collateral owned by a third party, like relatives or friends, and they become the guarantor.
A financial co-applicant is someone who will be paying the interest to the bank during your study period. For this, the financial co-applicant needs to have a steady income and the necessary proof. When applying for an education loan, you'll need to gather the following documents of your co-applicant.
Bank passbook copy/bank statement (last 6 months or more)
Academic Institution's Letter:
Academic fees demand letter (issued by the institution)
Income Tax Related:
Proof of turnover (latest Sales Tax/Services Tax/GST return statements/MSME certificate/utility bill))
Audited P&L (Profit and Loss statement) for the current and previous financial year
Proof of retirement and pension certificate (from requisite authority)
Proof of qualification like CA, doctor, and other professionals (if required by the bank)
If the business is small, you need to focus on things like shop registration or vendor purchase receipts. Occasionally, there are really tiny home businesses, like selling saris from home. In these cases, banks might accept photos of the stock as proof. But if your co-applicant's business is well-organized, it means better chances of getting the loan approved.
In summary, it's important to have at least one person with the listed documents to secure an education loan without collateral. It's best if this person is a close family member, such as parents, siblings, parents-in-law, parents’ siblings- as in your father’s brother or Mother’s
In this section, we'll cover the necessary documents, which might seem complex due to technical terms, but they are highly beneficial. It's crucial to follow along to avoid confusion.
One primary cause for government bank loan rejections is related to property legality or incomplete documentation. Grab a pen and paper to jot down these details.
As discussed in our previous blog, collateral falls into two categories: Immovable Properties or Liquid securities. Let's begin with the paperwork required for Immovable properties like houses, flats, and land.
Property Title Deed and Registered Sale Agreement:
Allotment Letter from Municipal Corporation or Authorized Govt. Authority:
Chain Deed or Link Document or Encumbrance Certificate (EC):
Latest Property Tax Copy or Electricity Bill:
Municipality Approved Building Plan or Plot Layout:
Completion and Occupancy Certificates (For Constructed Properties):
Fixed Deposit (FD) as Security:
Insurance Policy as Security (Maturing Policy):
Gold as Security:
Pledging liquid securities accelerates the education loan processing time as legal and valuation reports are unnecessary.
For Karnataka, especially Bangalore:
These terms might sound unfamiliar, but they're not as complex as they seem. Get in touch with our team. They will guide you properly on each step of the education loan process.
What documents do I need to provide for an education loan to study abroad in a private bank?
To obtain an education loan to study abroad in a private bank, you will need to provide documents such as your admission letter, mark sheets, income proof of the co-borrower, KYC documents, collateral documents, and any other documents specified by the bank. It's advisable to check with our officers to understand the exact documentation requirements for different lenders.
What is the repayment period for an education loan to study abroad in a government bank?
The repayment period for an education loan to study abroad in a government bank can vary depending on the loan amount, course duration, and the bank's policies. Typically, the repayment period can be up to 15 years, including the moratorium period. However, some banks may offer longer repayment periods for higher loan amounts.
How much income proof do I need to provide for a co-applicant for an education loan to study abroad in a government bank?
The income proof required for a co-borrower for an education loan to study abroad in a government bank can vary depending on the bank and loan amount. Typically, the co-applicants income should be sufficient to cover the loan amount, and they will need to provide salary slips, income tax returns, and bank statements as proof of income.
Can I get an education loan to study abroad without a co-application in a private bank?
Yes, some private banks may offer education loans to study abroad without a co-applicant, but the loan amount may be lower, and the interest rate may be higher. The eligibility criteria and documentation requirements may vary depending on the bank's policies and the borrower's repayment capacity.
Can I apply for an education loan online?
Yes, many private and government banks offer the facility to apply for an education loan online. You just have to request a callback from our financial officer to check your eligibility criteria, documentation requirements, and application process. they will guide you throughout the education loan process because we are the digital partner of more than 14+ public and private banks. Some banks (mostly public banks) may require a physical visit to the bank branch for document verification and loan disbursal.