Education Loan

Student Education Loan Application in Public Banks

Student Education Loan Application in Public Banks

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Read GyanDhan’s guide on how to apply for an education loan

GyanDhan
Ananya Ghai
Updated on:  16 Mar 2024  | Reviewed By: 
Aman 
| 6.86K | 14  min read

Education loans offered by public banks have become a lifeline for countless students, making academic dreams a reality. Public banks are banks that are governed by the government. If you are a student who requires a higher loan amount and want to enjoy lower interest rates then public banks are your way to go.

Public banks offer competitive interest rates, flexible repayment options, and often, extended grace periods, ensuring that the financial strain on students and their families is minimized. If you want to apply for an education loan from a public bank then you can either fill the loan application form or visit the nearest branch.
 

Check Your Education Loan Eligibility

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Education loans from public banks - an overview

Feature Description

Lenders

SBI, BOB, UBI

Loan amount

Up to INR 1.5 Cr 

Interest rates

9.5 - 11%

Moratorium period

Course duration + 12 months

Repayment during course

Nil

Processing time

Up to 15 - 30 days

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Applying for education loans via Vidya Lakshmi portal

The Vidya Lakshmi portal provides a single window for students to access information about various loan schemes provided by banks and make applications for them. To apply for an education loan via the Vidya Lakshmi portal, follow these steps:

Step 1: Start by filling out the Common Education Loan Application Form (CELAF). This is a crucial initial step for your loan application. Access the dashboard and click on the 'Loan Application Form' tab.

Step 2: Next, click on the orange tab labeled 'Search and Apply for Loan Scheme' on the dashboard. This will allow you to explore and apply for various education loan schemes available.

Step 3: Use the provided filters to refine the search results according to your specific requirements. You can filter the schemes based on factors such as whether it is for domestic or international study, the level of the course, and the desired loan amount.

Step 4: Once you have applied the filters, a list of suitable loan schemes will be displayed. Each scheme will have an option to apply for it.

Step 5: Click on a particular scheme that interests you, and you will be redirected to a page providing detailed information about that specific scheme. Review the details carefully to ensure it aligns with your needs.

Important note: Keep in mind that you can apply for a loan from a maximum of three banks, and only one scheme per bank can be selected for the application.

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Applying for an education loan via GyanDhan

The process to apply for an abroad education loan should always start from exploring and comparing different lenders and their products. Borrowers win half the battle as GyanDhan evaluates your profile and selects the best lender for them. To apply for an abroad education loan through GyanDhan, you need to follow five simple steps.

Step 1: Check your loan eligibility.

Step 2: Expert education loan counselor will evaluate your profile.

Step 3: Team GyanDhan will either arrange a doorstep pickup for your documents or you have to upload documents.

Step 4: Once the documents are uploaded, GyanDhan will proceed with the rest of the formalities.

Step 5: The bank will disburse the amount as per schedule./p>

 

 

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Read More About: Education Loan Against Property: A Detailed Overview

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How to apply for an education loan application in State Bank of India?

State Bank of India, is one of the largest public banks in India. SBI is a popular choice for education loans amongst students and their parents. SBI's education loan schemes are designed to assist students and their parents in financing their educational expenses.

SBI provides both online and offline modes for applying for an education loan. 

Offline procedure:

To apply for an education loan in the offline mode, you need to visit the nearest SBI branch and initiate the process with the bank. If you opt for the offline mode, get ready to make multiple bank visits for submitting documents.

Online procedure:

To apply for an education loan in the online mode, you need to complete the following steps.

  • list items Start by visiting the official website of State Bank of India at www.sbi.co.in.
  • list items On the homepage, you will find a 'Loans' or 'Education Loans' tab. Click on it to access information related to education loans.
  • list items SBI offers various education loan schemes, so carefully select the one that suits your needs. Read the details, terms, and conditions of the chosen scheme thoroughly.
  • list items Click on 'Apply Now' or 'Online Application': Click on it to start the online application process.
  • list items You will be prompted to fill in your personal, academic, and financial details. Ensure that you have all the required documents handy, including proof of identity, address, academic records, and course admission letter.
  • list items Enter the collateral and co-applicant details. Collateral may include property documents, fixed deposits, or other assets.
  • list items Upload scanned copies of your documents during the application process.  
  • Add SBI Education Loan Application Form

    Did you know that GyanDhan is in partnership with SBI? So if you apply for an abroad education loan at SBI through GyanDhan you are eligible for a free doorstep document collection.

    Get Guaranteed Best Loan with GyanDhan
    Find a Better Loan Offer Elsewhere & We Will Cover the Difference in Interest
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    How to apply for an education loan application in Bank of Baroda?

    Bank of Baroda (BOB) is one of India's leading public sector banks, known for its wide range of financial products and services. Established in 1908, BOB has a strong presence not only in India but also in several countries around the world. When it comes to education loans, BOB offers competitive options to help students pursue their dreams of higher education both in India and abroad.

    Bank of Baroda provides two main channels for applying for an education loan: online and offline. 

    Offline procedure:

    To apply for an education loan offline, find the nearest Bank of Baroda branch in your vicinity. Inquire about the loan options, fill out the application form accurately, and gather all necessary documents such as ID, address proof, academic records, and admission letter. Submit your application and documents to the bank's loan department for review and potential approval based on their criteria.

    Online procedure:

  • list items Start by visiting the Bank of Baroda official website (www.bankofbaroda.in).
  • list items Look for the 'Education Loan' or 'Loans' section on the website's homepage. Click on it to access information related to education loans.
  • list items Before applying, ensure you meet the eligibility criteria set by BOB. 
  • list items BOB offers various education loan schemes for different purposes, such as studies in India or abroad. Choose the one that suits your needs the best.
  • list items Click on the option to apply for an education loan online. You will be redirected to an application form. Fill in all the required details accurately.
  • list items Scan and upload the necessary documents, such as your admission letter, academic records, identity proof, address proof, etc.
  • list items Review all the information you've provided, and once you're sure it's accurate, submit the application.
  • list items After submission, you will receive an application reference number. You can use this reference number to track the status of your application online.
  • list items Bank of Baroda will review your application, and if everything is in order, they will approve your loan.  
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    How to apply for an education loan application in Union Bank of India?

    Union Bank of India is one of the prominent public sector banks in India that offers education loans to eligible students to pursue higher education in India and abroad. These loans help students and their parents finance the cost of tuition fees, books, accommodation, and other related expenses. Applying for an education loan from Union Bank of India can be done through both online and offline modes.

    Offline mode:

    To obtain an education loan from Union Bank of India through the offline mode, visit the nearest branch. Next, collect the application form. Fill out the form accurately, attach required documents, and submit it through the representative. Stay in touch with the branch for application updates. Once approved, the bank will disburse the loan per the agreed terms.

    Online Mode:

  • list items Go to the official website of Union Bank of India (https://www.unionbankofindia.co.in/).
  • list items Navigate to the "Education Loan" Section: It is usually located in the "Retail" or "Personal Banking" section.
  • list items Click on the "Education Loan Scheme" option to access detailed information about the loan, including eligibility criteria, interest rates, and documentation requirements.
  • list items Fill Out the online application form: 
  • list items Scan and upload the necessary documents, such as proof of identity, address, admission letter, academic records, and collateral documents (if applicable). Ensure that all documents meet the bank's requirements.
  • list items Review the application form and documents carefully before submitting. Any inaccuracies or missing information may delay the loan approval process.
  • list items After verifying the information, submit the online application. You will receive an acknowledgment or reference number for your application.
  • list items You can check the status of your application online using the reference number provided. The bank will communicate with you regarding the status of your application.  
  • Add UBI Education Loan Application Form

    Did you know that Union Bank of India is the only public bank that provides abroad education loans of up to INR 40 Lakh, without any collateral. The Bank approves unsecured abroad education loans for selected courses and universities. To check if your targeted university is listed in the Union Bank’s pre-approved list, request a callback.
     

    Read more about: What Happens to Education Loans When Borrower Dies in India?

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    How to apply for an education loan application in Punjab National Bank?

    Punjab National Bank (PNB) is one of the leading public sector banks in India, offering a range of financial products and services, including education loans to help students pursue higher education in India and abroad. These loans cover tuition fees, living expenses, and other related costs. To apply for an education loan from Punjab National Bank, you can choose between online and offline application modes. 

    Offline application mode:

    To apply for an offline education loan through Punjab National Bank (PNB), follow these steps:

  • list items Locate your nearest PNB branch and visit during working hours.
  • list items Request a physical application form and complete it manually.
  • list items Submit photocopies of required documents, such as academic records, admission letter, identity proof, address proof, income proof, and collateral documents if applicable.
  • list items The bank will verify your application and may interview you if necessary.
  • list items If approved, you'll receive an offer letter with loan terms to review and accept.

  • Online application mode:

    Follow these steps to complete the online application process at PNB:

  • list items Go to Punjab National Bank's official website (https://www.pnbindia.in/).
  • list items Look for the "Education Loan" section on the website's homepage or use the search function to find it.
  • list items Click on the "Apply Now" or "Online Application" link to access the education loan application form. Fill in all the required information accurately, including personal details, educational details, and loan amount required.
  • list items Scan and upload the necessary documents, such as academic records, admission letter, identity proof, address proof, income proof, and collateral documents (if applicable). Ensure that the documents meet the bank's requirements.
  • list items Double-check all the information provided and documents uploaded. Make any necessary corrections. Once you are satisfied with the application, submit it.
  • list items After submission, your application will be processed by PNB. You may be contacted by bank representatives for further verification or information if needed.
  • list items If your application is approved, you will receive an offer letter outlining the terms and conditions of the loan. Carefully review and accept the offer.
  • Add PNB Education Loan Application Form



    Read more about: Canara Bank Education Loan Options for India or Abroad Studies

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    Documents required for an education loan

    To apply for an education loan at a public bank, you are required to submit or upload the following documents.

    Applicants' documents

    1. Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.
    2. Education loan application form.
    3. Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ driving license/ Aadhaar card.
    4. Passport 
    5. Past academic record.
  • list items 10th standard mark sheet
  • list items 12th standard mark sheet
  • list items Undergraduate result (semester-wise)
    1. Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
    2. Proof of admission: admission letter (A conditional admission letter is also applicable).
    3. Statement of expenses.
    4. 2 passport-size photographs.
    5. Loan A/C statement of one year (if applicable)
    6. Bank account statement of the student (if applicable)
       

    Co-applicant’s documents

    1. Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
    2. Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of passport/ driving license/ Aadhaar card.
    3. 2 passport-size photographs.
    4. If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.
    5. Legal documents of the collateral/ property documents.
    6. Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).


    Income proof for salaried co-applicant/guarantor

    1. Salary slips for the last 3 months.
    2. Copy of form 16 of the last 2 years or copy.
    3. Bank account statement for the last 6 months (Salary account).
    4. Brief statement of assets & liabilities of parent/ guardian/ other co-borrower.
       

    Income proof for self-employed co-applicant/ guarantor

    1. Business address proof.
    2. Last 2 years IT returns ( If IT Payee).
    3. TDS certificate (Form 16A, if applicable).
    4. Certificate of qualification (for C.A./ doctor and other professionals).
    5. Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
    6. Bank account statement for the last 6 months.


    Documents required for loan against property 

    The list of documents required for collateral based education loans depends on several factors, primarily: property type, purchase history, and location. Broadly, the following documents are required:

    Common documents:

    1. Registered sale deed.
    2. Approved plan or map of the constructed property.
    3. Chain documents, evidencing the ownership history of the property for the last 30 years.
    4. Latest property tax receipt.
    5. Occupancy proof.


    Additional documents if you’re applying for an education loan with a property in the following cities:

    1.  Mumbai or Pune

  • list items NA order
  • list items Urban land ceiling order
  • list items NOC from a builder or society
  • list items Share certificate
  • list items Letter of allotment
  • list items Conveyance deed of society
  • list items If CIDCO / MHADA property: NOC and transfer letter

  • 2. Hyderabad

  • list items Urban land ceiling certificate
  • list items NA certificate, if not included in the sale deed
  • list items 7/12 extract, if not included in the sale deed
  • list items Encumbrance certificate

  • 3. Bengaluru

  • list items RTC (Record of tenancy certificate)
  • list items Conversion order (from agriculture to residential)
  • list items Khata certificate ( A or B )
  • list items Property tax receipt
  • list items Encumbrance certificate
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    Mistakes to avoid when applying to an education loan from public banks

    Applying for an education loan from a public bank can be a significant step in funding your education. To ensure a smooth and successful application process, it's essential to avoid common mistakes that can lead to delays or rejections. Here are some mistakes to avoid when applying for an education loan from public banks:

  • list items Insufficient research:  Applying for a loan without thoroughly researching the terms and conditions, interest rates, and repayment options of different banks. Research and compare loan offerings from various public banks to choose the one that suits your financial needs and offers favorable terms.  
  • list items Incomplete documentation: Failing to provide all the required documents or submitting incomplete paperwork can lead to delays or rejection. Carefully review the bank's documentation requirements and ensure you submit all necessary documents correctly and in a timely manner.  
  • list items Inaccurate information: Providing incorrect or inconsistent information on your loan application can lead to rejection or complications. Double-check all the information you provide on the application form and supporting documents for accuracy. Be truthful about your financial status and academic history.  
  • list items Poor credit history: Applying for a loan without addressing or improving a poor credit history if you have one. If you have a low credit score, consider taking steps to improve it before applying for a loan. This may involve paying off outstanding debts or seeking a co-signer with a better credit history.  
  • list items Not Seeking Guidance: Not seeking guidance from financial advisors or loan counselors when needed. If you are unsure about any aspect of the loan application process, consult with financial experts or counselors who can provide guidance and advice.  
  • Applying for a student loan through public banks can be a viable and affordable option for those seeking financial assistance to pursue their higher education dreams. Public banks offer competitive interest rates, flexible repayment options, and government-backed schemes that provide a safety net for borrowers. Moreover, the accessibility and widespread network of public banks make them a convenient choice for students across the country.

    However, navigating the intricacies of the loan application process can be challenging, and it's crucial to stay informed and make well-informed decisions. This is where GyanDhan comes into play. With our expertise, personalized guidance, and an extensive network of partner banks and lenders, we simplify the application process, help you find the best loan options, and ensure you make the most of your education financing.

    So, if you are on the lookout for a hassle-free student loan experience with the added advantage of expert assistance, don't hesitate to give GyanDhan a try. We are here to help you achieve your academic goals without any financial stress. To start your education loan journey with us, check your education loan eligibility.

    Read Also

  • list items Public Sector Banks Education Loan
  • list items A Comprehensive Guide: Student Loan Application in Private Bank
  • list items Education Loan for Abroad Studies by Indian Government
  • list items Bank vs. NBFC Education Loan
  • list items Education Loan for Abroad Studies Without Collateral
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    Frequently asked questions

    Which public bank is best for an education loan?

    There isn't a one-size-fits-all answer to this question as the best bank for an education loan can vary based on your individual circumstances and the terms offered by different banks. Some popular public banks in India that offer education loans include State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BOB), Canara Bank, and others. It's advisable to compare the interest rates, loan terms, and eligibility criteria of various banks before making a decision.

    What is the best way to apply for an education loan at a government bank?

    The best way to apply for an education loan is to apply through GyanDhan, India’s first education financing marketplace. With partnerships with leading lenders such as State Bank of India, Bank of Baroda, ICICI Bank, Axis Bank, and HDFC-Credila, we provide the best loan option to aspiring students. To secure an education loan from a government bank, check their loan eligibility.

    How do I start a loan application?

    To initiate an education loan application, first, check your eligibility and choose the right lender. Collect the required documents. Next, complete the application online or in person, providing accurate information. If needed, arrange for a co-signer with good credit. Await the lender's decision, review the loan terms upon approval, and accept the loan.

    Check Your Education Loan Eligibility


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