Education Loan

A Comprehensive Guide: Student Loan Application in Private Bank

A Comprehensive Guide: Student Loan Application in Private Bank

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Read GyanDhan detailed guide on how to apply for an education loan at private banks. Know about key features of private banks education loans.

Education loan Study abroad
GyanDhan
Ananya Ghai
Updated on:  27 Sep 2023  | Reviewed By: 
Aman 
| 5.08K | 9  min read

Private banks in India can offer students both secured and unsecured loans to study abroad. The amount that can be sanctioned depends on various factors such as country, course, applicant’s profile, co-applicants financial profile, etc. Private-sector banks offer higher interest rates than government banks but better interest rates than NBFCs and international lenders.


Private banks typically require borrowers to meet specific eligibility criteria, which may include a good credit score, proof of enrollment in an accredited educational institution, and sometimes a co-signer with a strong credit history.

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Features of education loans from private banks

Feature Description

Lenders

ICICI Bank, Axis Bank, IDFC First Bank

Loan amount

Up to INR 80 Lakh

Interest rates

12 - 14%

Moratorium period

Course duration + 12 months

Repayment during course

Simple or partial simple interest

Processing time

Up to 15 - 20 days

 

Check Your Education Loan Eligibility

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How to apply for education loans via Vidya Lakshmi portal?

The Vidya Lakshmi portal serves as a platform for students in India to access information about various education loan schemes provided by banks and financial institutions. To apply for an education loan follow the below mentioned steps.

Step 1: Begin by completing the Common Education Loan Application Form (CELAF), a crucial first step. Access the dashboard and click on the 'Loan Application Form' tab.

Step 2: On the dashboard, click the orange 'Search and Apply for Loan Scheme' tab. This allows you to explore and apply for various education loan schemes.

Step 3: Utilize the provided filters to narrow down your search results based on specific criteria such as whether it's for domestic or international study, the course level, and the desired loan amount.

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

Step 5: Click on a particular scheme that interests you. You will be redirected to a page offering detailed information about that specific scheme. Take your time to review the details to ensure it aligns with your needs.

Point to remember - 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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How to apply for education loans via GyanDhan?

To apply for an abroad education loan through GyanDhan, follow these five simple steps:

Step 1: Check your loan eligibility.

Step 2: GyanDhan's expert education loan counselor will assess your profile.

Step 3: Your dedicated loan counselor will provide you with a customized document checklist. Borrowers will further upload the documents on GyanDhan’s website.

Step 4: Once the documents are uploaded, the GyanDhan team will take it further from there.

Step 5: The bank will disburse the loan amount according to the agreed-upon schedule.

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How to apply for an education loan in ICICI Bank?

ICICI Bank is one of India's leading private sector banks that offers various financial products and services, including education loans. Education loans can be a great way to fund your higher education expenses, whether in India or abroad.

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

Online mode of application:

Applying for an education loan online is the most convenient and efficient way to get started.
Below is a step-by-step guide on how to apply online:

  • list items Visit the ICICI Bank website 
  • list items Look for the 'Education Loan' or 'Loans' section on the website's homepage or in the menu.
  • list items Once you're in the education loan section, you'll typically find an 'Apply Now' or 'Apply Online' button. Click on it to initiate the application process.
  • list items Fill out the application form. Make sure to provide accurate information.
  • list items Scan and upload the necessary documents, such as your identity proof, address proof, academic records, admission letter, and more, as per the bank's requirements.
  • list items Carefully review the details you've provided, and if everything looks correct, submit the application.  

ICICI Bank Education loan Application Form


Offline mode of application:

If you prefer a more traditional approach, you can apply for an education loan offline by visiting your nearest ICICI Bank branch. Visit the nearest ICICI Bank branch using the bank's website or directory. Once at the branch collect the application form. Fill out the form, attach the required documents, and submit your application at the branch.

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How to apply for an education loan in Axis Bank?

Axis Bank is one of the prominent financial institutions in India that offers education loans to help students pursue their higher education goals both in India and abroad. Education loans can cover tuition fees, living expenses, books, and other related expenses. 

Online mode of application: 

This is the most convenient and widely used mode for applying for an education loan. You can apply for an Axis Bank education loan online through the bank's official website. 

  • list items Go to the official Axis Bank website 
  • list items Navigate to the 'Products' section and click on 'Education Loan' to access the loan details and application form. 
  • list items Fill in the application form
  • list items Scan and upload the necessary documents 
  • list items Review and submit the application.  

Axis Bank Education Loan Application Form

Offline mode of application: 

While online applications are more convenient, you can also visit your nearest Axis Bank branch for an offline application. Visit the Bank and obtain the application form. Along with the application form, submit all the required documents such as identity proof, address proof, academic records, admission letter, and income proof. Hand over the completed application form and documents to the bank representative.

Check Your Education Loan Eligibility

Click Here
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How to apply for an education loan in IDFC First Bank?

IDFC First Bank is a prominent financial institution in India, known for its wide range of banking and financial services, including education loans. They offer competitive interest rates and flexible repayment options to make education financing more accessible to students and their parents.

Borrowers can apply for an education loan from IDFC First Bank through both online and offline modes.

Online application procedure:

  • list items Start by visiting the official website of IDFC First Bank.
  • list items Look for the 'Education Loans' section on the website. It might be under the 'Loans' or 'Products' tab.
  • list items Fill out the online application form. You'll need to provide personal details, educational institution details, course information, loan amount required, and other relevant information.
  • list items Upload scanned copies of the required documents, such as academic records, income proof, identity proof, and address proof.
  • list items Double-check all the information you have entered and the documents you have uploaded. Once satisfied, submit the application.  

IDFC First Bank Education Loan Application Form

Offline application procedure:

Visit the nearest IDFC First Bank branch in your area. Request an education loan application form from the bank representative. Complete the application form with accurate information. Attach the necessary documents as specified by the bank, including income proof, academic records, identity proof, and address proof. Hand over the completed application form and documents to the bank representative.

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Documents required for an education loan from private banks

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

Applicants' documents

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

  1. list items Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
  2. list items Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of passport/ driving license/ Aadhaar card.
  3. list items 2 passport-size photographs.
  4. list items If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.
  5. list items Legal documents of the collateral/ property documents.
  6. list items 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. list items Salary slips for the last 3 months.
  2. list items Copy of form 16 of the last 2 years or copy.
  3. list items Bank account statement for the last 6 months (Salary account).
  4. list items Brief statement of assets & liabilities of parent/ guardian/ other co-borrower.


Income proof for self-employed co-applicant/ guarantor

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


In Conclusion

Navigating the process of applying for a student education loan in private banks can be a challenging but necessary step in pursuing your higher education dreams. Remember that while private banks offer attractive interest rates and repayment options, private banks offer easy loan applications and take less time to approve loans. Additionally, maintaining a strong credit history, preparing all necessary documents, and staying organized throughout the application process are essential to ensure a successful loan approval.

At GyanDhan, we understand the importance of securing financing for your education. That's why we're here to support you every step of the way. We connect students with a wide range of education loan options, including those offered by private banks, to help you find the most suitable financing solution for your academic journey. With GyanDhan, you can access personalized loan recommendations, expert guidance, and a seamless application process.

Don't let financial barriers stand in the way of your education. Explore your options, make informed decisions, and leverage resources like GyanDhan to turn your educational aspirations into a reality. check your loan eligibility and take the first step toward a brighter future!

Read how GyanDhan can help you get:

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Frequently asked questions

How can I apply for a student education loan in private banks?

To apply for a student education loan in private banks, you can follow these steps:

  1. list items Research different banks and compare their loan offerings, interest rates, and repayment terms.
  2. list items Check the eligibility criteria and documentation requirements of the bank you want to apply to.
  3. list items Fill out the loan application form and attach the required documents, such as proof of admission, identity proof, address proof, income proof, and academic records.
  4. list items Submit the loan application form and documents to the bank.
  5. list items Wait for the bank to process your application and approve the loan.

What is the interest rate and repayment period for student education loans in private banks?

The interest rate and repayment period for student education loans in private banks may vary depending on the bank and the type of loan. However, most private banks offer education loans at competitive interest rates, ranging from 12-14%, and repayment periods of up to 15 years.

Can I get any tax benefits on my education loan from private banks?

Yes, you can get tax benefits on your student education loan under Section 80E of the Income Tax Act. You can claim a deduction on the interest paid on your education loan for a maximum of 8 years or until the loan is fully repaid, whichever is earlier.

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