Frequently Asked Questions on Education Loans

FAQs:

• What happens if I can’t repay my education loan on time?

  If you are unable to repay your education loan on time, the bank may charge late payment penalties, and your credit score can be negatively affected. Continued non-payment can result in the account being classified as a non-performing asset (NPA), and the bank may initiate recovery actions, including contacting your co-applicant or guarantor. In cases where collateral is involved, the lender may begin the process to claim or auction the asset. It’s important to communicate with your bank if you’re having difficulties, as some lenders offer restructuring, temporary relief, or moratorium options to help borrowers manage repayment challenges.

• How much time does it take to approve an education loan?

  Generally, the time taken to approve an education loan depends on several factors, including the type of education loan, the lender, and the student's profile. However, for an unsecured education loan, it typically takes between 7 and 10 working days if the student applies via WeMakeScholars. For a secured education loan, it takes around 15 to 25 days, provided the student can submit all the necessary and valid documents and apply via WeMakeScholars.

• What are the documents required for the Vidyalakshmi education loan​?

  The documents required for the Vidhyalakshmi Education loan are

  • Proof of Identity
  • Proof of Address
  • Academic Records
  • Admit Card of the university/college
  • Collateral documents
  • Proof of income
  • Two passport-sized photographs

• How do I check the status of my education loan application?

  You can check the education loan status in multiple ways. The most common ways are by visiting the branch and checking with the loan officer, by contacting the customer support of the respective bank, or through the bank's online portal. If you apply through the Vidyalakshmi portal, the student can log in to the portal and check the status. If applied through WeMakeScholars, a dedicated financial officer will walk you through the entire loan process and keep you updated on the status of your loan.

• What is the minimum academic percentage required to get an education loan?

  The minimum academic percentage required to get an education loan is 60%. A good academic performance can enhance the chances of education loan approval. The better the academic percentage, the higher the chance of loan approval. However, some lenders may offer the loan considering other factors such as strong repayment capacity, good GRE score, etc. Connect with WeMakeScholars to check your eligibility.

• Can I get an education loan to cover living expenses abroad?

  Yes, you can get an education loan to cover living expenses abroad. Lenders offer education loans that cover tuition fees, living expenses, travel costs, and other miscellaneous expenses, such as stationery and lab fees.

• Can I get a study abroad loan without collateral in India?

  Yes, you can get a study abroad loan without collateral. These are called unsecured education loans.  Many lenders are offering unsecured education loans. Students must meet the eligibility criteria mentioned by the lender, which typically include having a strong financial co-applicant with a decent credit history and stable income, as well as securing admission to a top 100 university. A strong academic background of the student with a good test score can also help students to get an unsecured education loan to study abroad.

• How much maximum loan can I get to study abroad from India?

  The maximum loan amount that you can get to study abroad is up to 3 CR. This is in the secured education loan category. For an unsecured education loan, the maximum amount the student can get is up to 1.25 CR. However, Students have to meet the specific requirements mentioned by the lender to avail these loans.

• Can I get a 20 lakh education loan without collateral to study abroad?

  Yes, you can get a 20 lakh education loan without collateral to study abroad. For an education loan without collateral, students have to demonstrate certain eligibility criteria given by the lender, such as having a strong financial co-applicant with a decent income and good credit history. Students choosing the top 100 universities to study abroad, with exceptional GRE scores, etc.

• How much money is required to study abroad?

  The minimum amount required to study abroad is $18,000 or 15,00,000 INR. This depends on various factors such as the country, the course, and the university that the student is opting for. This requirement varies depending on the tuition fees, cost of living in the country, and other miscellaneous expenses.

• What documents do I need for an SBI education loan?

  For an SBI education loan, the required documents are

  • KYC Documents
  • Proof of Address
  • Academic Records
  • Admit Card of the university/college
  • Collateral Documents(for secured loans)
  • Proof of income
  • Two passport-sized photographs

  This requirement of documents can vary from lender to lender, based on the loan type, the country the student is going to, and the course the student chooses.

• Do I need a passport for an SBI education loan to study overseas?

  Yes, you need a passport for an SBI education loan to study overseas. A passport is one of the important documents required to apply for an education loan. It is not even possible to apply for a visa without a passport.

• Do I need a co-applicant for an SBI education loan for overseas studies?

  Yes, a co-applicant is required for an SBI Education loan for overseas studies. A co-applicant is someone liable to pay the student’s loan if they don’t. Primarily accepted co-applicants are parents, spouse, parents-in-law, or Guardian.

• Can I prepay or close my SBI education loan early if I study abroad?

  Yes, you can prepay your SBI education loan early if you study abroad. The interesting part is that there are no penalties for a certain period for those who choose to prepay or close the education loan with SBI. Borrowers can leverage this opportunity and save significant money on interest.

• Is the SBI education loan available for diploma or certificate courses abroad?

  Yes, the SBI education loan is available for a diploma or certificate course abroad. Students can avail of both secured and unsecured loans for these courses. The interest rate is lower in secured loans than in unsecured loans. SBI is offering a secured loan of up to 3 CR and an unsecured loan of up to 50 lakhs to students. However, to get an unsecured education loan, students are required to meet the eligibility criteria mentioned by the SBI.