How to avail Education Loan from Banks & Documents Required

To avail education loan is easy especially if your requirement amount is below 4 lacs.

Following are the details regarding security which is common to every bank and no bank can change it as it is set by RBI to ensure good service to citizens. Please ref

https://rbi.org.in/scripts/NotificationUser.aspx?Id=369Security

Particular	Security
Upto Rs. 4 lacs loan amount	Only Parent/ Guardian as co-borrower
Above Rs. 4 lacs to Rs. 7.50 lacs loan amount	Parent/ Guardian as co-borrower and Collateral security in the form of suitable third party guarantee*. *Third Party Guarantee can be replaced with Parent/Guardian as co-borrower provided the Gross Annual Income of Parent/Guardian (co-borrower) as given in latest Income Tax Return is 3 times of the loan amount.
Above Rs. 7.50 lacs loan amount	Parent/ Guardian as co-borrower and tangible collateral security

In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law

Documents Required (List is common to every bank including private banks)

• Original Letter of admission

• Completely filled in Loan Application Form

• 2 passport size photographs

• Original Statement of cost of study which is FEES STRUCTURE given by college

• PAN Card of the student and Parent/ Guardian not mandatory for student in most of the bank 

• AADHAR Card of the student and Parent/ Guardian

• Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)

• Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)

• Student/Co-borrower/ guarantor's bank account statement for last 6 months

• IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee) or Income certificate given by STATE government to poor people whose children want to pursue higher education

• Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower

• Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

For people who doesn't earn above 4 lacs can avail interest subsidy from government time to time.

Every bank need to process or reject education loan in 15 days as time line set by most of the banks and closely monitored by RBI.