ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

A Complete Guide to Student Loans in India

Updated on March 27, 2012

This article serves as a complete guide on loan for students and amount to be taken from India for higher studies abroad. It is for all those students who are searching for how to apply for a student loan in India for studying abroad including documents required for loan processing, student loan application, sanction procedure, and other guides.

Rate of Interest for Student Loan for Overseas Universities

The rate of Interest differs from bank to bank. It is normally from 11.75 to 12.5% in all nationalized banks. Also, there is a discount of 0.5% for girls who apply for the loan.

Now first of all prepare the following documents before applying for a student loan in India

  1. All the mark sheets of the last examination you have qualified
  2. Proof of studentship or admission scholarship
  3. A brief detail of expenses required for a specific course
  4. Passport size photographs (Two)
  5. Statement of bank account for last 6 months
  6. Income tax records for last 2 years
  7. Statement of liabilities and assets of the borrower and the coborrower

Are you planning to apply for a student loan in India for funding your education overseas? If yes, then you have landed on the right page.
Are you planning to apply for a student loan in India for funding your education overseas? If yes, then you have landed on the right page.
Happy students in Delhi
Happy students in Delhi | Source

Don't neglect your student loans, as it hurts your credit score

For statement of liabilities and assets

Here you will need to submit the agreement (Patta or Land Agreement), blueprint of the house, valuation report of house from a bank panel valuator, legal opinion from bank panel lawyer to prove that your property does not have any legal issues (this may take a few months if you go as it is but you can get it done within a week’s time when you pay additional fees to the lawyer and panel engineers). For this, you need to check with the bank to know who are the panel engineers and panel lawyers.

Submission of Student Loan Application

After completing the above requirements, you can verify your documents with the bank and give an application along with the above documents. If the bank requires any additional documents, they will inform the same. You will also need to submit the expense statement along with the application which is TUITION FEES + LIVING COST FOR THE PERIOD OF STUDY- this particular thing must also be filled in the application in Indian Rupees. There will be a separate provision for filling this and you need to give the breakups like:

Tuition Fees

Living - boarding plus lodging plus travel plus other expenses

Indian State Seeks Limits on Microfinance After Reports of Abuses

Amount Sanctioned

According to the RBI Policy for application of student loans for overseas universities, banks have the right to sanction loan from 75 to 85% and this depends upon banks and bank officials. Also, they will consider your security for the loan.

Best Method of Taking Amount to the University

We can request bank to either transfer the money to the university or give a demand draft in favor of university. Also, request them in two DDs, one in favor of the University and another in favor of Yours for Cost of Living and Personal Expenses. I have heard from various previous student loan applicants that if you are carrying a single demand draft in University’s name and nothing in your name, it becomes very tough for the students to get the remaining money apart from the fees from the university since they have the policy of returning the remaining money after our course gets completed, so always ask the bank for two separate DDs or travelers check.

So above is a complete guide for getting student loans in India including documentation for student loans, submission of student loan application, sanctioned amount, and student loan rate of interest in India. You can also find more details and facts about student loans in India through my other guides.

Happy Studying

Get a student loan for studies abroad
Get a student loan for studies abroad
Source
Source
working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://corp.maven.io/privacy-policy

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)