Documents Required For Education Loan
Education Loan

List of Documents Required for Education Loan 2024

List of Documents Required for Education Loan 2024

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Searching for a list of documents required for an education loan? Check complete information about documents required for an education loan to study abroad.

GyanDhan
Anam Shams
Updated on:  28 Jun 2024  | Reviewed By:  Aman  | 11.2K | 17  min read

Getting an education loan for your studies abroad sounds promising until you have to arrange the exhausting list of documents required for education loan. Understanding the specific student loan documents required can significantly ease your education loan application process. While some lenders may offer an instant loan without documents for students, it's important to know the standard documents required for a student loan to ensure you are well-prepared. Imagine having everything ready and avoiding last-minute scrambles—sounds great, right? This guide will walk you through the detailed list of documents required for an education loan, from academic progress reports to disbursement request letters, helping you avoid common pitfalls and delays.

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Education Loan Documents Required 

Different types of documents are required for an education loan, which can be categorized into various segments, reflecting the multifaceted nature of the education loan documents list. Understanding the student loan documents required is crucial for a seamless application process. By breaking down the which documents required for education loan, applicants can better prepare and thus avoid potential delays or rejections.

 

Below is the list of documents required for education loan in India, serving as a guide to ensure applicants have a comprehensive understanding of documents required for student loan

Type of document Applicant Co-applicant

KYC documents

Yes

Yes

Passport photographs

Yes 

Yes

Academic documents

Yes 

No

Financial documents

No

Yes

The first set of education loan documents you need to submit in your application is the identity and address proof which includes KYC documents and photos.

Check Your Education Loan Eligibility

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KYC Documents Required for Student Loan

KYC denotes the basic identity details of applicants and co-applicants in the loan application. A KYC document will be a valid identity proof issued by the government or a reliable body that can be used to verify your identity and address. The following are some of the KYC documents for education loans in India:

KYC Documents from the Applicant KYC Documents from the Co-Applicant

Aadhar card

Aadhar card

PAN card

PAN card

Valid passport copy

Voter’s ID 

Along with the KYC documents, the applicant and the co-applicant must submit two copies of passport-size photographs taken within the last 6 months. Your current address proof is a must, and if that is not present in the KYC documents you submit, provide a current address proof such as a water/electricity/ LPG bill, current house lease agreement, or other similar documents.

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Academic Documents Required for Education Loan

All your past academic records must be submitted to the lender as proof of academic eligibility. Note that the UGC declared 23 universities as fake in 2023, meaning your certificate from those universities will not be valid for an education loan.

 

The following academic documents required for student loan:

Academic document Conditions

10th result

50% or above pass 

12th result

60% or above pass

Undergraduate results (final and/or semester-wise)

60% or above pass

Entrance test results (GRE, GMAT, IELTS, TOEFL, Duolingo, SAT, ACT, etc.)

The prescribed minimum score for the test

Proof of admission/ Offer letter

Should be valid at the time of applying for a loan

Statement of cost of study/ Schedule of expenses

Should document the major areas of funding for the loan

College/ course prospects

If available 

Copies of letters conferring scholarship, free-ship, etc.

If available

Gap certificate, if applicable

Self-declaration from the student for a gap in studies

Note: Given above is a general list, and you may not require all the documents or other case-specific documents might be required when you approach a lender. 

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Financial Documents Required for Education Loan

The co-applicant’s financial history must be credible when you apply for a secured education loan. The bank ensures the financial trustworthiness of the co-applicant by analyzing the financial documents required for student loan you submit.

Salaried Co-Applicant Self-Employed Co-Applicant

Salary slip for the last 3 months

Business address proof (GST certificate/ MSME certificate/ Utility bill)

Copy of Form 16 or IT Returns for the last 2-3 years 

TDS Certificate (Form 16A)

Bank statement for the last 6 months

IT returns for the last 6 months - 2 years if IT payee

A brief statement of assets & liabilities

Certificate of qualification for C.A., doctor, and other professionals

 

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Collateral Documents Required for Education Loan

Collateral documents are most important for secured education loans as the education loan is entirely valued against the collateral provided. Given below are lists of collateral documents required for diverse collateral types like plots, buildings, and liquid collateral:

Type of Collateral Documents Required

For Plots or Buildings

  • list items
    Title deed & Sales deed
  • list items
    Registration receipt
  • list items
    Allotment letter
  • list items
    Chain deed for the last 30 years
  • list items
    Tax copy or electricity bill
  • list items
    Government-approved building plan
  • list items
    Occupancy Certificate and Completion Certificate if the property is constructed

For Liquid Security

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    For fixed deposits - an FD Certificate
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    For insurance policy - Policy paper and Surrender Value Certificate
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    For government bonds - A bond certificate
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State-Specific Documents Required for Education Loan

In India, the requirement for property documents is not the same for all the states and union territories since property laws slightly vary among them. The following is a compilation of state-specific documents required for properties in some states of India:

State  Specific documents

Karnataka

  • list items
    Khata Certificate
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    Khata extract

Maharashtra

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    NOC from society
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    Bill payment receipt 
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    Index II 
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    Share certificate
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    Conveyance Deed

Telangana

  • list items
    LRS for lands
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    BRS for buildings
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Documents Required After Education Loan Sanction

The documentation process is not one-sided; the lender also sends some documents as a response to your submission of documents. Once the lender approves and sanctions your education loan application, you need to obtain from the lender the following documents to proceed with the loan process:

Documents for Disbursement Documents for Repayment

Education loan sanction letter

Repayment instructions

Loan agreement

Government interest subsidy claim record

Disbursement request letter 

Eligibility document for the tax deduction under section 80 E

University fee demand letter 

Tuition fee rebate from taxable income under Section 80C

Applicant's academic progress report (Previous semester) 

Record of the due principal amount of the loan along with the number of EMIs

Copy of the payment receipt of the previous disbursement

Fresh repayment instructions in case of full Post Dated Cheque (PDC) or swap of existing repayment instructions.

 

Watch the YouTube video on documents required for an education loan

 

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Documents Required for Disbursement of Education Loan

After an education loan is sanctioned, several documents are needed to ensure the smooth disbursement of funds and compliance with the loan agreement. Below is a detailed list of these documents required for disbursement:

1. Academic Progress Report

A detailed report of the applicant's academic performance from previous semesters. This document provides insight into the student’s progress and records their educational achievements.

2. Disbursement Request Letter

A formally completed letter from the applicant requesting the disbursement of the loan funds. This letter typically includes details such as the amount to be disbursed and the purpose of the funds.

3. Payment Receipt from the Institute

A copy of the payment receipt from the educational institution for the previous semester. This receipt confirms that tuition fees or other expenses have been paid, serving as documentation of the student's enrollment.

4. Visa and SWIFT Advice (for Abroad Education)

Copies of the student's visa and SWIFT advice, especially for those studying abroad. These documents verify the student's overseas education status and are necessary for compliance purposes.

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How to Improve Your Eligibility for an Education Loan?

To qualify for an education loan, you must meet specific eligibility criteria. Here are some tips to enhance your eligibility:

Method Description

Maintain a Strong Academic Record

Consistently perform well in your studies and maintain good grades.

Score High in Qualifying or Entrance Exams

Achieve high marks in exams such as SAT, GRE, GMAT, or any relevant entrance tests.

Gain Admission to a Reputable University or College

Secure admission to well-recognized and accredited institutions, as this increases your loan approval chances.

Demonstrate Strong Future Employment Prospects

Show potential for future employment in your field of study to assure lenders of your ability to repay the loan.

Present a Strong Financial Background

Ensure that your financial background or that of your co-signer is strong, demonstrating your ability to manage and repay the loan.

It is crucial to understand the rationale behind the documents required for education loans and submit them accurately at each stage of the application process. Proper loan documents establish your credibility and enable lenders to assess your profile efficiently. GyanDhan can help you ease the documentation work. We offer education loan borrowers a customized document checklist. Plus, we offer document pickup for specific lenders. To start your loan application hassle-free, check your education loan eligibility.

Calculate your Education Loan EMI

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Frequently Asked Questions

Do banks provide education loan documents?
 

Generally, the lender provides an education loan required documents list. But the list of required documents will be a long one that may confuse you to comprehend. Also, it will be difficult to get a timely answer from the lender at every step of the loan application.

What if I don’t have all the loan documents to apply for an education loan?
 

Generally, you must have all the crucial documents when you apply for an education loan. However, if you don’t have a document at the time of application but will be submitting it sooner, you can contact your lender and submit it later if the lender approves the request.

Is the education loan documents list the same for banks and NBFCs?&
 

The major education loan required documents are the same for banks and NBFCs, which are listed below:

  • list items KYC documents of the applicant
  • list items KYC and financial documents of the co-applicant
  • list items Collateral documents, and 
  • list items Academic documents of the applicant
What are the education loan documents required to get an education loan from international lenders like Prodigy Finance and MPOWER Financing?
 

The education loan required documents are simplified for international lenders like Prodigy Finance and MPOWER Financing since they provide education loans that do not require collateral or co-applicant. Your personal identity and academic documents the major requirements to get an education loan from these international lenders.

What documents are required for education loan?
 

To apply for an education loan, you'll need a completed application form, academic records, proof of admission, cost estimates, identity and address proof, income proof, and recent bank statements. Collateral documents and visa/travel documents (for studying abroad) may also be required.

Check Your Education Loan Eligibility


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