Checklist of Documents Required for an Education Loan Application

Among other choices, applying for an education loan also involves choosing the right lender to get favourable loan terms. It involves careful preparation and submission of essential documents. Therefore, knowing which documents are needed for education loan processing can make the application process smoother and swifter. This article gives you a checklist of the documents that various financial institutions may commonly ask for when you are applying for an education loan.

What are the Documents Required While Applying For an Education Loan

The documentation provided by you is used by lenders to verify your identity, education level, course details, and financial status. They rely on these records to assess whether you are a suitable borrower and how much you can borrow.

Here is a complete checklist of documents required for an education loan.

1. Identification and Proof of Address

Individuals and co-applicants have to provide valid identification and proof of address. The documents that must be submitted are as follows.

• Aadhaar card, PAN card, or passport as an identity proof

• Recent electricity bill, ration card, voter ID, or rent receipt for address verification

These documents help the lenders to verify your personal details as per the KYC (Know Your Customer) guidelines.

2. Academic Records

Educational documents are used to establish your academic qualifications and admission to the course.

• Class 10 and 12 certificates and mark sheets

• Graduation mark sheets (in case of applying for a postgraduate loan)

• A university or college letter of admission

• Entrance test scorecard (if applicable)

These documents verify that the course is qualifying for loan funding.

3. Income Proof of Co-applicant

The lender considers the financial stability of the co-applicant, usually a guardian or parent.

• Salary slips for the previous three months (if salaried)

• Their previous two years' income tax returns, or Form 16

• Bank statements of the last six months

• In case the co-applicant is self-employed, they also need to provide a certificate of registration of business and a balance sheet.

Income proof supports the repayment capacity of the co-applicant during and after the moratorium period.

4. Admission Confirmation and Course Information

Details about the course, such as fees and course duration, should be provided by the borrower.

• Admission confirmation letter from the institution

• Fee schedule or estimated cost of education.

• Details about the course duration and structure are given in a prospectus or the institute's brochure.

This information allows the lenders to calculate the loan amount you might be eligible for.

5. Passport-size Photographs

The borrower and the co-applicant are required to submit recent photographs. These are attached to the application form and other forms during loan processing.

Conclusion

Having a checklist of the commonly required documents can simply and further make your education loan application efficient. These documents are required to verify your identity, academic records, repayment ability and confirmation of admission. The exact list of documents may differ among various lenders, including Tata Capital, based on the loan amount. Knowing these commonly required documents can help you plan for your education loan application.