Steps to take education loan

Steps to take an education loan: An education loan process has several steps, right from calculating the finances to disbursement of the loan. Generally, getting an education loan sanctioned is a tedious task for both students and parents. Many a time, people make simple mistakes in calculating the finances and submitting the documents which in turn delay the entire process. So it is important to be aware of the steps to take an education loan. If you konw the process then it is easier to get an education loan faster and move one step closer to your dream of studying abroad. Read this article for information on the steps to get an education loan.

Steps to take an education loan-Know about each step

Step 1: Fill in the application form

The first step to apply for student loan is to get an application form. Once you have shortlisted the banks where you wish to apply, you can either collect the application form from the banks or apply online by visiting the bank’s official web page. The candidate must have in hand his/her admission offer letter from the university along with the details of the study expenditure. The candidate must also provide the required documents for education loan such as:

• Passport size photograph
• Resident proof of the applicant
• Photo identity proof
• Academic documents
• Income proof of the guarantor

Step 2: Verification of the details and documents

The next step in applying for a student loan is to submit the application form along with the supporting documents for student loan, the bank will then verify the details. The process of verification differs from bank to bank. Some banks prefer a personal conversation with the candidate where they enquire about academic qualification and excellence. In case the bank requires more details, it will inform the candidate.

Step 3: Sanction/ rejection of education loan

If the bank is satisfied with the documents provided by the candidate, it sanctions the educational loan. Once the loan is sanctioned, the bank will issue a Loan Offer Letter mentioning the amount to be given to the candidate. The candidate can use this letter for the admission process in order to state the source of income to support his/her studies. The bank also sends an Education Loan Agreement to the student, which states the terms and conditions of the student loan, interest rate and repayment strategies. Once the loan is granted, the student needs to sign a promissory note. This is one of the important steps to getting a student loan.

Step 4: Disbursement of education loan

As part of the student loan process steps, once all the formalities are completed, the bank will disburse the education loan. The education loan amount is given to the candidate through:

• Demand Draft
• Cheque
• Electronic transfer to the university
  

Also read:

• Study abroad Education loan: How it works to your advantage
  Top Education Loan Providers in India to study abroad

You must be aware of the steps to apply for a student loan so that you succeed in getting a student loan andd can fulfil your dream of studying abroad.