Papers that will help you avail an education loan


If you face an emergency and are low on funds, you know you can bank on a personal loan. This personal loan can be for any kind of cash crunch. Be it a wedding loan, a travel loan or a medical loan for some unseen health emergency for you or your family member.

What if your financial emergency is for education? Will you be able to avail an education loan? Like a personal loan, an education loan helps you to pay for acquiring a good education if you do not have own resources. Education loans are disbursed by lenders like Tata Capital and have a few criteria when it comes to education loan. They assess your education loan eligibility as well your ability to repay.

They assess your capabilities through a variety of means such as your creditworthiness, past record, relationship with the lender, other loans availed, income sources, age and academic record. It is one thing to have a chat with you and another to keep a record of your credentials. Lenders seek documentary evidence for all that you claim.

Let’s see what these documents are when you apply for an education loan.

Know Your Customer (KYC) Documents

KYC documents are a statutory requirement. These documents establish your identity through various documents that governments issue for you such as Aadhaar, driving license, passport and PAN. These could also serve as a proof of address, age and nationality. You will need KYC documents of each applicant if you are applying for an education loan jointly with your parents.

Academic record

Your academic record including marks sheets, degrees and other certificates are necessary to prove that you have a good record and you are capable of undergoing the course you have applied for and come out successful and secure a job after finishing your course. You need to submit these from the 10th standard onwards.

Admission letter

You would have applied for the course of your choice in an educational institution where you propose to study and you would have received an admission letter from there. You need to produce the same along with other relevant information such as a period of study, course, tuition fees, hostel fees, living expenses and other expenses needed to complete the course. You need this information as you can add up all these expenses to arrive at the amount of education loan you require. Any other communication received from the institution such as prospectus may also be required.

Income credentials

You need to submit documents to prove that you and the joint applicants have the capability to pay back the education loan. In this regard, the lender may seek income proof in the form of ITRs, salary slip, P/L statement, balance sheet and net worth statement. You will need the latest 6-month bank statement.

Collateral security

When you seek an education loan exceeding Rs 4 lakh you will need to submit collateral security in the form of various documents such as immovable property, mutual funds, fixed deposits and life insurance policies.

Studying abroad

If you seek admission to a college abroad, then you will require documents to prove that you have the necessary permissions to study in that country.

Employer’s NOC

If you are in employment and you have applied for an education loan and your employer has granted you study leave safeguarding your employment, you need to submit proof of such permission. This will strengthen your case as your employer guarantees your job and you can repay the education loan quite easily.

Application for education loan

Your lender will seek a filled-in application form for education loan. You need to fill the form carefully and truthfully. You can probably fill the form online and submit a hard copy along with relevant documents to support the application as per the norms fixed by the lender.

You may visit the website of the lender to seek information on the documents required for education loan usually found under personal loan product. You can also use the facilities on the website such as personal loan EMI calculator to ascertain whether you can pay the EMIs for the tenure of the loan.

It is quite clear that you need to prove to the lender your credentials in terms of your admission in a recognized college and the need for an education loan. You will also need to prove with documents your capability to repay the education loan. Armed with these documents availing an education loan for your higher education is a cinch.