The decision to study abroad can be a life-changing one, however, it does not come easy. While the competition of getting into the most prestigious universities in the world is fierce, other factors like funding can put a significant dent in your study abroad dreams. Being one of India’s largest education loan marketplaces, UniCreds is committed to providing students with all the necessary resources to live their dreams of studying abroad. This is why we offer many collateral-free education loans to top study destinations. In this blog, I will cover the entire documentation requirements for getting an education loan along with a solid list of documents required for education loans abroad. So, let’s get started!
Education Loan Eligibility Criteria
Education loans are one of the most widely used forms of student aid all over the world. However, to secure an education loan you need to check whether you are eligible to apply for an education loan or not. Once you find out that you are eligible for it, you need to start collating the documents required for an education loan. Here are the usual criteria which Indian banks follow to gauge an applicant’s eligibility –
- The applicant should be a citizen of India.
- The applicant must have attained the age of 18 or else his/her parents will have to take the education loan.
- The applicant must have a good academic track record.
- The applicant must have secured admission to a recognized foreign university/institution/college.
- The desired course that the applicant is going to study must be a technical or professional one, as banks give preference to job-oriented courses.
Don’t forget to read our guide on A Comprehensive Guide to Education Loans to learn more about education loans.
Documents Required For Education Loan – Process Based
- Pre-Approval Documentation: Required documents for student loan application, including KYC forms and collateral documents.
- Post Approval Documentation: Documents needed to confirm the loan application and approval, such as admission offer letter and loan agreement.
- Post Sanction/Disbursal Documentation: Documents for managing the education loan after sanction, such as college fee receipts and consent for co-applicant removal.
Documents Required For Education Loan – Banks Vs. NBFCs Vs. International Lenders
The processing time for education loans obtained from government or private banks, NBFCs (Non-Banking Financial Companies), or international private lenders varies based on the documentation requirements. As the number of required documents increases, the processing time also tends to increase. NBFCs simplify loan processing by eliminating the need for collateral, thereby reducing paperwork.
Similarly, some students opt for International Private Student Loans when their documentation does not meet the standards of domestic student loan lenders. These loans also involve a considerable amount of paperwork. However, they offer additional benefits such as an international credit line, better options for student loan refinancing, and more. Documentation related to international scholarships for higher education also plays a significant role. Not all lenders allow the adjustment of scholarships with margin payments for student loans.
Identification documents:
- Personal Identification
- Adress Proof
- Age Proof
- Co-applicant identification
Legal Documents:
- Student acceptance letters.
- Visa approval forms.
- Indian Income Tax Returns.
- International Scholarship award certificate.
Subsidy Documents (does not apply for NBFCs):
- Minority caste certificate issued by the relevant government authority.
- Documents verifying disability/illness and indicating the degree of disability.
- Merit and extra-curricular certificates (if applicable).
Financial Documents:
- Immovable collateral documents (not for NBFCs)
- Bank documents
- Movable property documents (not for NBFCs)
- Proof of income
Academic Documents:
- Admission proof
- Previous academic record
- Supporting academic documents for study abroad
Documents Required For Education Loan – Based On Lender Criteria
- Academic documents: Required for international admission, such as marksheets, admission letter, exam scores, and passing certificates.
- Financial documents: Needed for education loan application, including collateral deeds, bank statements, and other financial background information.
- Identification or KYC documents: Essential for verifying the applicant’s identity and opening a loan account, such as Aadhaar card, utility bills, etc.
- Legal and institutional documents: Mandatory for study abroad applications, such as income-tax returns (ITR), visa documents, immigration approvals, affidavits of collateral, and loan agreement.
- Subsidy documents: Often overlooked by students, these include income, gender, and minority-related documents to meet eligibility criteria for government education loan subsidy schemes or private bank schemes.
Documents Required For Education Loan To Study Abroad With International Private Student Loan Lenders
Identification documents:
- Personal Identification
- Adress Proof
- Age Proof
- Co-applicant identification
Legal Documents:
- Student acceptance letters.
- Visa approval forms.
- Indian Income Tax Returns.
- International Scholarship award certificate.
Financial Documents:
- Immovable collateral documents (not for NBFCs)
- Bank documents
- Movable property documents (not for NBFCs)
- Proof of income
Academic Documents:
- Admission proof
- Previous academic record
- Supporting academic documents for study abroad
Additional Requirements For DACA Student Loans And FAFSA Students Aid For Education Loan To Study abroad In USA
Proof of immigration status:
- Permanent Resident Card I-551 or Conditional Green Card I-551C
- Deferred Action for Childhood Arrivals (DACA) or Victims of Violence Against Women Act (VAWA) certification
Identification number:
- Social Security Number or University-issued Security Number.
Documents Required For Education Loan To Study Abroad: Co-applicant Management And Turn-Around-Time
Timing of student loan application is of great importance. International private student loan lenders typically have a turnaround time of 30-45 days. Similarly, secure student loans for studying abroad generally materialise within 10-20 days. Some NBFC organisations can provide loans within 5-12 days, depending on the quality of documents provided by the applicant. Post-application management of student loan documentation is also a matter of concern for many students. Refinancing a student loan for studying abroad requires a strong credit history, along with relevant documents to substantiate it. The removal or inclusion of a co-applicant also necessitates students to present valid documents.
Head over to UniCreds today and get your education loan fast-tracked!
Procedure For Getting An Education Loan For Studying Abroad
The entire education loan application procedure is a time-consuming process. From loan application to approval and disbursement, there are many moving parts. This is why it is advisable to apply for an education loan a little early. Here are the steps involved in applying for a student loan –
- Ensure that the course in which you are going to study is recognized by the banks.
- Estimate how much loan amount you will need.
- Also, figure out how much money you will arrange on your own.
- Compare the student loan provided by different banks for studying abroad and go for the one which caters best to your needs.
- Once you have selected a bank and loan amount, fill out the loan application form and approach your bank.
- As soon as your loan is approved, the bank will issue a list of documents required for education loans abroad.
- Once the documents required for education loans abroad are verified and after the loan agreement is signed, the bank will disburse the amount in instalments or as asked by the university.
If you wish to get the best interest rates on your education loans, read: How to Get a Lower Interest Rate on an Education Loan.
This is the traditional way of applying for an education loan to study abroad. With UniCreds you can get past several steps and fast-track your entire education loan process.
Simply give a call on 0008000403523 or send a mail on contact@unicreds.com and one of UniCreds’ experienced education loan consultants will guide you throughout the education loan process, right from selecting the right bank and documents required for education loans abroad to loan approval and disbursement.
Here is why you should trust UniCreds
No hidden fees whatsoever
Our services are free of cost.
Flexible collateral requirements
Students can find a wide range of education loans with little-to-no collateral requirements.
Up to 100% finance
Find education loans that cover your entire cost of education including fees, accommodation, insurance, travel and more.
Affordable EMIs
Find customised repayment solutions.
The lowest rate of interest
Thanks to our partnerships with top lenders, our students can find the lowest rate of interest on their education loans.
Minimum documentation requirements
We provide a concise list of documents required for education loans abroad.
Attractive tax benefits
The interest paid on education loans can be claimed as dedication as per the Income Tax Act.
24/7 service
Students can expect around-the-clock service from UniCreds.
FAQs
1.Are original documents required for education loans?
Banks impose several terms and conditions on applicants before granting education loans. To make the most of the services offered by the bank, each prospective student loan applicant must abide by these terms and conditions. This includes having all necessary original documentation available.
2.What is proof of income for an education loan?
Before approving your loan application, education loan lenders look for income proof from your co-applicant. Salary slips or salary certificates from the last three months, copies of Form 16, last 2-3 years of IT returns, last 6 months of bank account statements, and other documents are accepted as proof of income for education loans.
3.Is a GAP certificate necessary for an education loan?
A student who has taken one or more gap years after high school and is applying for admission to a university or college after the gap period will need to provide a GAP affidavit or certificate. Yes, an educational gap of more than three months must be justified in writing to the bank or by providing a gap certificate.
4.Is ITR required for an education loan?
Yes, the ITR is required for an education loan. The co-applicants ITR documents of at least 2 years are a mandatory requirement to be able to borrow an unsecured education loan. A high CIBIL score is required for the co-applicant.
5.What is proof of admission to the course for an education loan?
Certain documents are considered valid proofs of identification in the banking community, despite the common discourse about identity proofs. Both applicants and co-applicants must submit their respective identity documents. Identity proofs for education loan applications include not only photo identification but also proof of residence.
We hope you enjoyed reading this blog on ‘List Of Documents Required For Education Loans Abroad’. If you wish to read similar blogs, here are some links that you could check out –
- Education Loans for Students Studying MS in the USA
- How To Get An Education Loan For Abroad Studies Without Collateral?
- Education Loan : Key Points To Remember
If you’re someone who wants to share your valuable experiences through a blog, we’re more than happy to collaborate. Write to us at contact@unicreds.com to know more about our guest-post submission process. If you need any assistance with student accommodation or scholarships, head over to UniAcco and UniScholarz respectively.
