Education Loan for Engineering

An Education loan for engineering helps students pay for the expenses associated with earning a degree in engineering. This type of loan can be used to cover tuition, accommodation , books, and other education-related expenses. 

Engineering programs can be expensive, and many students may not have the financial resources to pay for the costs of their education. Education loans can help bridge the gap and allow students to focus on their studies instead of worrying about how to pay for their education.

In India, education loans are a common method for students, including those studying for a btech degree, to pay for their higher education. These loans can be secured or unsecured, depending on the borrower's financial situation and the lender's requirements. 

• Must be an Indian citizen
• Gaining acceptance into a full-time btech program at a recognized university or institution in India.
• Age limit: 18 to 35 years
• Minimum qualification: Graduation degree  

A loan that is unsecured is one in which the borrower is not required to pledge any assets such as a house, flat, non-agricultural land, fixed deposits, insurance policies, or government bonds as collateral. Instead, a co-applicant with specific qualifications is required.

• The co-applicant must be a close relative of the student, such as a parent or spouse.
• The co-applicant should have a strong credit history and a stable source of income.
• The co-applicant must be willing to assume responsibility for repaying the loan if the student is unable to do so.
• The co-applicant must provide the lender with personal and financial information, including proof of income.
• The co-applicant may also be required to offer collateral, such as property or investments, to guarantee the loan.
• It is important to keep in mind that the co-applicant will be just as liable as the student for repaying the loan. Therefore, the co-applicant should carefully consider the loan terms and the student's ability to repay the loan before agreeing to co-sign.

A loan that is secured requires the borrower to pledge an asset, such as a house, flat, non-agricultural land, fixed deposits, insurance policies, or government bonds as collateral. This collateral serves as a guarantee for the loan and the lender can seize the asset if the borrower fails to repay the loan.  

Collateral requirement - 
Immovable property: Flat, Non-agricultural land, House 
Liquid securities: Fixed deposit, Government bonds, LIC policy 

Value of collateral - 
When providing liquid security, the value of the security must be at least 1.1 times the amount of the loan requested.
When using immovable property as collateral, the value of the property must be at least 1.25 times the amount of the loan requested.

Pursuing a btech degree in a foreign country can offer Indian students valuable experiences, but it also comes with a significant financial cost. To alleviate this burden, many students rely on education loans to fund their btech education abroad.

To qualify for an education loan to finance a btech degree abroad, Indian students must meet certain requirements. These include:

• Being an Indian citizen
• Having a good credit history
• Meeting the minimum age requirement for the loan
• Having a confirmed admission to a recognized university abroad
• Having a good academic record
• Having a stable income or a source of income to repay the loan

Education loans for a btech abroad without collateral are unsecured loans which means the student does not have to pledge any assets as collateral for the loan. The interest rate on an unsecured loan is typically higher than that of a secured loan. Instead, a co-applicant with specific qualifications is required.

• The co-applicant must be a close relative of the student, such as a parent or spouse.
• The co-applicant should have a strong credit history and a stable source of income.
• The co-applicant must be willing to assume responsibility for repaying the loan if the student is unable to do so.
• The co-applicant must provide the lender with personal and financial information, including proof of income.
• The co-applicant may also be required to offer collateral, such as property or investments, to guarantee the loan.
• It is important to keep in mind that the co-applicant will be just as liable as the student for repaying the loan. Therefore, the co-applicant should carefully consider the loan terms and the student's ability to repay the loan before agreeing to co-sign.

Education loans for a btech abroad with collateral are secured loans, which means that the student must pledge an asset such as property, investments, or other assets as collateral for the loan. The advantage of a secured loan is that the interest rate is typically lower than that of an unsecured loan.

Collateral requirement -
Immovable property: Flat, Non-agricultural land, House 
Liquid securities: Fixed deposit, Government bonds, LIC policy(Insurance policies)

Value of collateral - 
When providing liquid security, the value of the security must be at least 1.1 times the amount of the loan requested.
When using immovable property as collateral, the value of the property must be at least 1.25 times the amount of the loan requested.

When applying for an unsecured education loan, the following documents are typically required:

Application form

A completed loan application form with two photographs and a signature as required by the loan officer.

Student Documents 

• Proof of identification such as Aadhar card, PAN card, and Passport of the applicant
• Admission letter from the university
• Utility bills such as electricity bill or house tax
• Academic documents including 10th and 12th certificates, degree or diploma
• Scorecards for competitive exams such as IELTS, TOFEL, GRE, and GMAT
• Gap certificate if there is any gap between your degree
• Experience letter if you have any work experience.

Co-applicant Documents

In addition to the identification documents, financial documents are also needed to be submitted as part of the loan application process. These may include:  

If Salaried 

• Latest 3 months salary slips 
• 6 months bank statement
• Company ID
• Latest 2 years form 16 
• Last 2 years ITRs 

If Self Employed 

• Last 3 years ITRs 
• 6 months bank statement
• Balance sheet, Profit and loss account for the last 3 years
• Proof of Business address

Other Documents 

• A letter of responsibility from the co-applicant stating they will cover any expenses not covered by the loan as per the format provided by the loan officer.
• A validated bank statement showing the activity of both the co-applicant and the student.
• An invoice for the requested loan amount including any associated travel or laptop expenses.
• Proof of payment in the form of receipts for any prior transactions made.
• Statements from prior years showing any outstanding loans yet to be paid off.
• A letter explaining any discrepancies and a sample on stamp paper with a cost of Rs. 100.
• A letter explaining the lack of co-applicant, if applicable and tax return filed. 

Documents Required for Collateral

All of the documents required for an unsecured loan are also necessary for a secured loan. However, for a secured loan, a basic income certificate is sufficient and ITRs are not required. In addition, you will need to provide additional documents as proof of the collateral that you are offering.

Additional Documents For Secured Loans

• A property title deed will be required.
• A registered sale agreement, gift deed, or will may also be required.
• Original receipt for the agreement needs to be provided.
• If applicable, an allotment letter from a government authority such as MHADA, CIDCO, HUDA, DDA, JDA, or GIDC will also be required.
• To establish ownership, a 30-year link document or a chain of sale deeds may be required. If the property has been owned for more than 30 years, a previous sale deed may be sufficient to prove ownership.
• Recent property tax and electricity bills with the same address as the property in question will also be required.
• A copy of a building plan or plot layout that has been approved by the municipality may also be needed.

Note: The required documents for collateral may vary based on the location of the collateral. A callback request or completing the common application form available on the WeMakeScholars website can provide information on any additional documents that may be required specific to the location of the collateral. 

Education loans for engineering students in Maharashtra are a financial aid option that helps students pay for the expenses associated with earning a degree in engineering. These loans are available to students who are residents of Maharashtra and are pursuing engineering studies in an institute located in Maharashtra. 

Engineering students in the state of Karnataka have the opportunity to receive financial assistance through education loans. These loans are meant to cover the costs of obtaining an engineering degree and are open to students who are residents of the state and studying at an institute within the state. 

The WeMakeScholars initiative is supported by the Indian government as a part of the Digital India Campaign through the Ministry of Electronics and Information Technology. The objective of this initiative is to help students access funding for their higher education, whether it's in India or abroad, who may not have the financial resources otherwise. 

Step 1: To begin with WeMakeScholars, you can reach out to them. You can either ask for a call back or complete a common application form our website.

Step 2: To obtain an education loan, it is essential to provide all the necessary information to the assigned loan officer. After evaluating your loan information, the loan officer will recommend and connect you with appropriate lenders that match your financial needs.

Step 3: After your loan officer has connected you with several suitable lenders, you can review and compare their offers. After evaluating the different options, you can choose the lender that you find the most suitable and inform your loan officer of your selection.

Step 4: Once you have chosen a lender, your financial officer will give you a list of documents that are tailored to your personal information. It is crucial to collect and submit all necessary documents either through the WeMakeScholars portal or the bank in a timely manner in order to guarantee a seamless and efficient loan application experience.

Step 5: Having submitted the required documents and started the loan application process, it is time for you to take a break and let your financial officer handle the rest. The lender or your financial officer may contact you for follow-up during the loan process, but you can feel secure knowing that your financial officer will manage the process smoothly and keep you informed of its progress.

Step 6: The lender usually takes around 7 business days to approve and grant the loan. Once your loan is approved, you will receive a loan sanction letter that will contain all the details of the loan such as the loan amount, interest rate, repayment period and other terms and conditions

Rate of Interest Negotiation:

WeMakeScholars can help students negotiate a lower interest rate for unsecured loans, potentially reducing it by 2% from the lender's initial offer. This can help students save money on loans.    

Experience in Complex Cases:

WeMakeScholars has extensive experience in handling complex cases involving multiple parties, which can sometimes make the loan application process more challenging. By using WeMakeScholars, students can be sure that their loan application will be handled by experts who have the knowledge and experience to overcome any obstacles and secure a loan for them. 

No Service Charge:

WeMakeScholars offers its services free of charge to students, and the support will continue until the loan is fully repaid.

Transparency:

WeMakeScholars will keep you updated on the status of your loan application and ensure that you understand the process without any confusion. They are always willing to answer any questions you may have. They strive to make the loan application process as simple and easy as possible for you.

Cashback Provided:

WeMakeScholars provides an incentive for students who apply for a study abroad loan through their platform, which includes a cashback reward that is added to the initial disbursement of the loan. The maximum cashback amount that can be received is INR 3000.

It's also worth considering scholarships and grants as a way of funding your education, as these types of financial aid do not have to be repaid. Many universities offer scholarships and grants to Btech. students and some various organizations and foundations provide funding for graduate students in specific fields of study. Some examples of scholarships for Btech. are:  

• Gilbertson Family Scholarship at the University of Tasmania 2024
• Bayes Business School International Scholarship 2024
• Northwest International Achievement Scholarship (NIAS) 2024
• International Achievement Scholarship for Current Students 2024
• Indian Institute of Technology (IIT) Guwahati SC-ST Scholarships 2024
• Vidyasaarathi Scholarship Schemes 2024
• Jayatee Deshmukh Scholarship 2024
• The Jamsetjee Nusserwanjee Tata Endowment Means Grant 2024
• Swami Vivekananda merit cum means Scholarship
• Keep India Smiling Foundational Scholarship (Bachelors) 2024-25