Education forms a bedrock in students’ life to shape their careers. However, higher education can be an expensive affair. Therefore, students zealously chase their academic aspirations by opting for education financing solutions to fund their studies independently.
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Student loans cover the holistic cost of education, including tuition fees, travel expenses, accommodation costs, living expenses, and other education-related expenses, allowing the aspirant to set out on the academic quest stress-free.
According to RBI data, banks’ education loans grew at 12% in the 12 months until September 30, 2022. This trend perfectly demonstrates the pro-credit sentiment among the student community, as quality education is their top priority.
However, students are usually first-time borrowers, so the student loan journey must be carefully planned. At this stage, some degree of perplexity among students may lead to several questions about the education loan application process, which is quite natural.
A CHECKLIST FOR FILLING OUT AN EDUCATION LOAN APPLICATION FORM
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The education loan application process is crucial, but students might make a few errors as beginners. In such cases, the lender can reject the student loan request due to various discrepancies in the application.
Therefore, understanding all the processes in detail is essential. Furthermore, students should not underestimate the efficacy of thorough research, as it will clarify various aspects of the education loan and the lender.
Before initiating the application process, they should ensure all the documents required by the loan provider are in place. This will enable a hassle-free education loan application journey.
Here are a few tips that applicants should keep in mind while filling out the education loan application form:
1. An overview of the application process for the loan: New-age education-focused financial institutions have moved the application process online. So, the applicant can apply by visiting their official website from the comfort of their home.
In case of any queries, they should immediately consult the lender before filling out the form. All the required documents should be handy when applying for a student loan.
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2. Haste is waste: The application form can either be filled out online or offline. But in both cases, it’s imperative to double-check the details entered. Take the necessary time to fill out the complete form without any errors.
Accurate information in the application form is crucial for loan sanction.
3. Consultation: The next important step is to consult the respective lender once the form is submitted with accurate information. The lender will explain the entire education loan process to the applicant.
At this stage, if students have any doubts, it is a perfect time to clear them all. Additionally, the financier will share the list of documents required for applying for an education loan with the applicant to enable a smooth experience.
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4. Submitting the documents as per the requirement: Making a checklist of all required documents is recommended. This will help one get through the process in one attempt and, thus, saves time.
Some of the important paperwork to be submitted will include KYC documents, academic transcripts, details regarding course and fees, proof of admission, co-applicant’s income proof, collateral documents (for a secured loan), to name a few.
5. Wait for approval and check for disbursal: After completing the entire education loan application process, the next step is to wait while the lender reviews documents before loan approval.
The lender evaluates a student’s profile against various parameters such as academic performance, entrance exam scores, the pedigree of the university, the course, continuity in education, etc., to determine the applicant’s employability potential. If the aspirant meets the prescribed criteria, the student loan will be sanctioned.
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TIPS TO SELECT AN EDUCATION FINANCING PARTNER
Selecting the right lender is extremely crucial. The right education loan partner will enable a transparent process and provide guidance related to the student visa, forex partner, insurance, and more. Therefore, it is necessary to implement a proper research mechanism to find the perfect education loan partner.
Here are a few things to keep in mind when opting for an education loan and finalising the education financing partner:
- Students should check if the lender funds the higher education for their choice of course and university.
- They should be prepared with the documents related to collateral if they plan to take a secured education loan.
- They need to be aware of the repayment capacity. Students should use Education Loan EMI Calculator and College Course Expense Calculator to make prudent decisions. The former will help estimate the EMI, and the latter will assist in estimating the overall course cost.
- Credit scores and co-applicants play a crucial role in the education application process.
As an education loan is a responsibility and opportunity for students, the journey should be designed carefully. It is essential for students and parents to seek the right guidance and research extensively while opting for an education loan.
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The application form that is systematically filled with the help of suggested tips can maximise the chances of students to avail the finances required, thus, enabling the academic aspirants to embark on a journey towards upward mobility.
