Woodfog helps individuals in coordinating with the bank on behalf of the students for their loan applications. We suggest the best option available for you from various banks available in the market. This helps you save your valuable time and helps you focus on your other priorities.

An educational loan is one of the best possible ways to meet your educational expenses. Bank provides financial support to a student which helps students pay for their higher education expenses. The eligible candidates for the loan are all graduates, post graduates and all the professional courses approved by state government, central government and the foreign universities. To provide students for an easy application process many colleges and universities have partnered with various banks for providing education loan. Individuals can get loan up to Rs. 10 lakhs for studies in India and for abroad up to Rs.20 lakhs.

Different bank have different eligibility criteria from funding an educational loan, which includes assessing the background of the borrower, their credit record if any, bank balance, asset of the family, course's nature and status of the institute before giving the loan. As per the standard policy no contract is required for the loans up to Rs. 4 lakhs and interest rate does not exceed beyond the Prime Lending Rates (PLR). There is no need for any security deposit with the bank for loan up to 4 lakhs, incase the requirement exceeds 4 lakhs some banks may ask a third person guaranty, except the security. Borrower will not have to repay the loan at the time of their studies once you start working you can start repaying your loan, after you have competed your course, loan repayment cannot be delayed.

Expenses covered

• Fees payable to the school, college or hostel
• Laboratory, Examination, or Library fee
• Fees required for purchasing equipments, books, uniforms or instruments.
• Building funds, caution deposit, or the deposit which is refundable supported by the institution receipts or bills.
• Passage money or travel expenses for those studies in abroad.
• Buy computers/Laptops or any other equipment which are useful for the course.
• Other expenses required for completion of course such as study tours, thesis, project work, etc.

Documentation
Documents required for the students looking to studying in India:

• Identity Proof: Identity proof can be passport copy, identity card of voters, driving license, or the pan card.
• Age Proof: Driving licence, passport copy, birth certificate or the pan card.
• Verification of the signature
• Photograph of the one singe.
• Agreement of Education Loan
• Post Dated Security Cheques according to Policy
• ECS/SI Mandate as applicable
• Other documents required according to policy.
• Completely filled registration form
• 2 passport size photographs
• Statement of expenses
• Student/Co-borrower/ guarantor’s bank account statement for last 6 months

As per RBI instructions, education loans up to Rs 10 lakhs for studies in India are classified under Priority Sector Lending.

Documents required for the students studying in Abroad:

• Letter of admission of the student from the college or university in the India and in Abroad.
• Course's cost counting cost of living
• The copy of the examination result passed at last time
• Passport copy
• Letter from HOD (Head of Department)
• Travel papers if any
• Papers of approval of Visa
• I-20 if student going to USA.
• Score of GMAT, SAT ,CAT or GRE

Documents needed from co applicant

• Confirmation of Income: Returns of income tax from last 2 years or form 16.
• Papers of Collateral Security
• According to the case, more documents or any other information maybe needed by the bank.

In some of the cases, guarantee of third party or the collateral security can be asked.

Security:

• No security is needed up to Rs. 4 lakhs of loan requirement.
• Collateral security in form of guarantee of third party is required in case when loan amount is above Rs. 4lakhs & up to Rs.7.5 lakhs.
• For the loan amount above Rs.7.5 lakhs, collateral security or guarantee of third party with the task of student's future income. This student's income is required for the installment payment.

Disbursement and repayment

The period of repayment started after completion of course plus 1 year or after the six months from getting job, whichever becomes earlier. Repayment will be done within 5 to 7 years.

Please note: Above information about documents, elegibility, policies, security may differ from bank to bank. Students are advised to talk to one of our representative or the bank before applying for an education loan.