How To Get A Student Loan In Chandigarh? A Step-By-Step Guide

Obtaining a student loan is a major step in the journey towards higher education. A student loan can help you achieve your academic dreams, whether you're pursuing studies in India or overseas. If you're located in Chandigarh, you're fortunate enough to choose from different options, such as a domestic education loan or a more complex international education loan, both of which are designed specifically for students. We're going to walk you through everything you need to apply for a student loan in Chandigarh in the following blog.

Why Go with a Student Loan in Chandigarh?

You might be wondering why you should apply for a student loan in Chandigarh instead of another option. There are plenty of strong reasons to do so:

Large loan amount. No margin for smaller loans

In Chandigarh, banks and NBFCs offer education loans up to very large amounts depending where you are studying (e.g., Education loans that cover ₹10 lakhs for domestic study, depending on the studies which is commonly up to ₹25 lakhs for abroad study). Also, just for student borrowers out there borrowing ₹4 lakhs or less, no need to worry about margin money. Students searching for some upfront value and confidence is a big advantage.

Collateral Requirements Flexibility

The best part of education loans in Chandigarh is that entirely collateral-free loans up to ₹4 lakhs, you can furnish collateral in the form of property or a third-party guarantee if you are borrowing higher loans. It offers you the flexibility, segmented under your situation you can opt for whatever suits you.

Attractive Interest Rates

The interest rates of education loans in Chandigarh is approximately more than 9.5%, and even for premier Universities, it can even be much lower than that. Certain institutions also offer lower interest rates for education loans under their arrangement with banks.

Loans Assistance Services that Help the students

Institutions like Chandigarh University have a Loan Assistance Cell catering and helping students in all phases of this process- from filling out the application right to onboarding and working with the Banks involved. It makes it more manageable for students to navigate through the education loan process.

Overall Education Expenses Coverage

Education loans in Chandigarh can provide funding for numerous aspects of educational expenses including tuition fees, hostel charges, and costs of the necessary books and travels necessary for overseas education. Students can receive and collect everything they may need.

Flexible Repayment Options

Repayment of your loan doesn’t have to start the moment you get your degree. With flexible repayment tenures ranging from 10 to 15 years and a moratorium period of 6 to 12 months after course completion or securing a job, you have ample time to get your finances in order before starting repayments.

The benefits of education loan for international students are always favourable in the long run. Perfect for handling long duration study terms.

Eligibility Criteria for Student Loans in Chandigarh

Before you start the paperwork, you want to ensure you meet the basic eligibility requirements. Below is a basic checklist of what you need to confirm to be eligible for a study loan:

• Age: Generally, you need to be 18 to 35 years of age. Most banks have an upper age limit of around 25 years for undergraduate courses and around 30 years for post-graduate courses.

• Qualifications: You will have to show proof of admission to an approved institution with a professional or technical course, which must be registered in a body such as NAAC or NBA.

• Co- applicant: Most banks require a co-applicant, usually a parent or guardian; they will also be responsible for repaying the loan.

• Eligible course and institution: The course must be eligible for a loan; this means that the course must be registered with relevant regulatory authorities and most banks only provide loans for approved institutions.

Required Documents for a Student Loan Application in Chandigarh

Document collection is an important step, and having all the documents will expedite your loan application process. Below is a list of important documentation:

Documents for the Student (Applicant)

• Identity: Aadhaar, Passport, Voter ID, Driving License.

• Photos: 2 passport-sized

• Academic Credential: 10th and 12th mark sheets or any prior qualifying educational records

• PAN Card: Must for ID and tax purposes.

• Admission acceptance: Letter from university with admission

• Course Fee Structure: Tariff of fees in relation to your course.

• Entrance Examination Scorecard: If applicable.

• University Prospectus: To ascertain the credibility of the institution.

Documents for Parent/Co-Applicant/Guarantor

• Identity: Aadhaar, Passport, Voter ID, Driving License.

• Photos: 2 passport-sized

• PAN Card: Required for the co-applicant.

• Income documents: Salary slips, ITR, or bank statement

• Financial Statement: Summary of asset and liabilities of co-applicant.

How to Apply for a Student Loan in Chandigarh?

There are generally two methods to apply for a student loan in Chandigarh. They are as follows: online and in-branch. Here's how to apply for a student loan:

1. Online Application Method

Step 1: Research the Bank/Institution

First, try to determine the bank or financial institutions that provide student loans for your course or university. For example, if you are studying at Chandigarh University, check which institutions partner with your university.

Step 2: Access the Online Application

Go to the relevant official bank website or try to find the Vidya Lakshmi Portal that will allow students to apply to multiple banks in one place.

Step 3: Complete the Application

Next, you must complete a Common Educational Loan Application Form or the (CELAF). It is important to fill out the application accurately with the correct details of yourself, your academic history, and your admission for your course.

Step 4: Upload Documents

The next steps are to upload documents which may include a scanned copy of your admission letter, proof of identity, proof of income, academic documents, and collateral documents if any.

Step 5: Submit the Application

Once you have completed the application form and uploaded the required documentation, you can submit the application. Some banks may instantly provide e-approval or pre-sanction based on your eligibility and loan amount.

Step 6: Follow-Up

You will have to track the application status and provide any other documents if the bank requests.

2. In-Branch Application Process

1. Step 1: Visit the Bank Branch Visit the nearest branch of the bank where you want to apply for the loan.

2. Step 2: Collect and Fill the Application Form Collect the education loan application form and fill it out. Bank officials can assist you if needed.

3. Step 3: Submit Documents Submit the completed form along with the necessary original and photocopied documents.

4. Step 4: Initial Verification The bank will verify your documents and may conduct a preliminary interview with the student and co-applicant.

5. Step 5: Loan Processing The bank will initiate the loan processing, including credit appraisal, verification of admission, and evaluation of income or collateral.

Loan Processing and Post-Application Expectations

Once you submit your application, you are only a few steps away from getting a loan:

• Document Verification: The bank verifies your documents during the loan application process to ensure your admission to the respective institution. Verify your income, verify your identity, and verify your Collateral (if any).

• Credit Appraisal: The bank also assesses the creditworthiness of your co-applicant (generally parent or guardian) using credit rating scales determined by specialized credit scoring models.

• Sanction and Offer: If the loan application gets approved, you will receive a sanction letter mentioning - loan amount, interest amount, repayment tenure and a moratorium.

• Loan Agreement and Disbursal: After you sign the loan agreement, the applicant and co-applicant clearly mention the loan amount would be disbursed to the educational institution at the time of disbursement and at the same time as per the fee schedule.

• Moratorium Period: Repayments generally start occurring after completion of the course, or after a grace period (of 6 to 12 months). During this period the student may only be paying interest.

• EMI: Equated Monthly Installments (EMIs) start being auto-debited from the bank account of the borrower or they are to be remitted according to the EMI schedule agreed upon.

Additional Support

• Loan Assistance Cells: Some educational institutions have their own Loan Assistance Cells. These support units walk you through the process of a bank loan, help you to get your documentation together, assist you with understanding various bank's mechanisms and ensure everything is in order.

• Make Multiple Applications with Banks: Platforms like the Vidya Lakshmi Portal allow the same student to apply to multiple banks at the same time, helping students increase their chances of a successful loan.

In Conclusion

Getting a Student Loan in Chandigarh is a very important decision that will help support you in making your educational dreams a reality. With banks it can be also referred to as a domestic education loan or an overseas education loan, understanding the process and keeping everything organized can help you a great deal.

Making use of both the Loan Assistance Cells and the online application portals can also help organize the process and get your finances in order before you set off on your academic journey. Get started early, be open for choices, ensure all your documents are in place to avoid delays on your loan application.