Education Loan in Visakhapatnam

• Education Loan: Financial assistance provided by banks to students or parents to cover educational expenses, such as tuition fees, books, and accommodation.
• Principal Amount: The original sum borrowed from the bank, which is to be repaid along with interest.
• Interest Rate: The percentage charged by the bank as a cost for borrowing the loan. It can be fixed or floating.
• Moratorium Period: A specified timeframe after completing education during which the borrower is not required to make loan repayments. Interest may or may not be charged during this period.
• Collateral: An asset or property pledged as security for the loan, ensuring repayment if the borrower defaults.
• Co-applicant: A person who applies for the loan along with the student and shares the responsibility of repayment.
• Loan Repayment Period: The duration within which the borrower must repay the loan, typically spanning several months to years.
• Monthly Installment: A fixed monthly payment comprising both principal and interest, facilitating gradual loan repayment.
• Processing Fee: A one-time fee charged by the bank for processing the loan application.
• Credit Score: A numerical representation of the borrower's creditworthiness, influencing loan approval and interest rates.
• Margin Money: The percentage of the total course cost that the borrower needs to fund personally. The bank covers the remaining amount through the education loan.

A hassle-free unsecured education loan process in Visakhapatnam depends on correct documentation. In this section, we are going to discuss all the important documents that are to be submitted by the student and co-applicant. Every single document, from confirmation of enrollment and academic achievements to the verification of the co-applicant's identity and evidence of income, is extremely critical to the approval process of the loan. Further, we will discuss other necessary paperwork, which includes the loan application form and the gap certificates, that shall make your application complete and accurate. Preparation is key to ensuring that you secure the financial support you need for your educational journey.

Student Documents

• Confirmation of Enrollment: The university provides a formal acceptance letter, confirming the successful enrollment of the student in their desired course of study.
• Academic Achievements: To substantiate the student's educational accomplishments, lenders require official academic transcripts, certificates, and school leaving documents, showcasing their outstanding academic performance and qualifications.
• Fee Breakdown: A comprehensive breakdown of the course fees is essential, including detailed information on tuition fees, examination fees, hostel fees, and any other related expenses, to offer complete transparency to both the student and their co-applicants.
• Age Verification: In compliance with legal requirements and to ensure eligibility for financial assistance, valid identification documents such as birth certificates, passports, or Aadhaar cards are necessary to verify the student's age.
• Identity Authentication: Identity verification is a crucial step in the application process. Therefore, lenders diligently verify the student's identity using official identification documents like Aadhaar cards, PAN cards, passports, or driver's licenses.
• Test Scores: Recognized exam scores (e.g., IELTS, TOEFL, GRE, GMAT) play a significant role in assessing the student's academic capabilities and potential for success in their chosen field of study. Hence, the submission of official test scores is mandatory.
• Residential Proof: To establish the student's residential address, we require valid documents like Aadhaar cards, voter IDs, utility bills, or rental agreements, ensuring that the student is a genuine resident of the specified location.
• Passport-size Photographs: Recent passport-size photographs in the specified format are essential to complete the student's application package and aid in identification and record-keeping.

Co-applicant Documents

• Identity Verification: For co-applicant(s) verification, lenders carefully examine official identification documents, including Aadhaar cards, PAN cards, passports, or driver's licenses.
• Address Confirmation: Validating the co-applicant's residential address is crucial to verify their relationship with the student. Thus, documents like Aadhaar cards, Voter IDs, utility bills, or rental agreements serve as proof.
• Income Evidence: Assessing the co-applicant(s)' financial capability is vital in determining their capacity to support the student's educational journey. Therefore, we require documents like recent salary slips, income tax returns (ITR) for the last two years, Form 16 for the last two years, or bank statements for the last six months (if salaried) or one year's worth of business transactions (if self-employed).
• Relationship Authentication: To establish the relationship between the student and co-applicant(s), lenders request relevant documents, such as birth certificates or legal documents, ensuring transparency in their association.
• Passport-size Photographs: Recent passport-size photographs of the co-applicant(s) in the specified format are crucial to maintain accurate records and assist in their identification.

Other Documents

• Loan Application Form: A comprehensive and duly filled loan application form provided by WeMakeScholars is an integral part of the application process, capturing all essential details to facilitate the loan request.
• Gap Certificate: In cases where there are gaps in the student's educational journey, students have to provide a gap certificate on 100 rs stamp paper that would be explaining the reasons for gaps between their studies.
• Supplementary Supporting Documents: Lenders may request additional documents as per specific requirements, such as guarantor documents, academic references, or course-specific prerequisites, to support the loan application further.
• Invoices: To maintain complete transparency, the submission of official invoices and receipts for educational expenses, such as travel, laptops, stationery, etc., is necessary for record-keeping and assessment purposes.

Your education loan repayment needs to be managed properly; otherwise, post-graduation, you may suffer from financial ill health. This section provides a comprehensive example of a repayment schedule for a student who has borrowed INR 42 lakh at an interest rate of 9.90%, with a repayment term of 10 years. Without going into the details of how it works, let's understand how the Equated Monthly Installments (EMI) progress over time, with a break-up of interest and principal, and how the outstanding loan balance goes down year on year. Let's guide you to ensure a smooth and hassle-free repayment process.