To upskill and upgrade yourself has become a necessity today. Despite the pandemic that disrupted lives across the planet, India’s demand for higher or professional education and education loans have seen a surge . It demonstrates how skill development remains a high priority for Indian students. Let us identify and elaborate on six steps that – when followed – can ease your education loan process by making it smoother.
1. Check your eligibility
Once you know the annual tuition fee, you can start your education loan application process by checking your eligibility. To do this, you must consult an education loan EMI calculator. You can use the one offered by IDFC FIRST Bank.
2. Decide on a course and keep a few options in mind
Ensure you know what you want to study and its value in the industry. You must know the progression of the course, its duration, and its yearly fee. Furthermore, you must also have some other courses and their details in mind if you fail to get admitted to the university of your choice.
3. Decide on a country
If you wish to study abroad, you must have at least two countries in mind. You must start reading up on student VISA application procedures specific to these countries and work on valuable skills such as learning the country’s language if possible. Doing so can go a long way in helping you settle down in the country.
4. Keep the essential documents with you
An important step is to have all education loan-related documents with you. The documents may vary depending on the applicant type, such as for the student, co-applicants, and collateral documents. To apply for education loan with IDFC FIRST Bank, you must have the following documents ready:
- KYC (Know Your Client) documents such as Aadhaar and voter’s ID card, etc.
- Proof of address
Here is the detailed list of documents needed for an education loan.
For students
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- Photo ID proof
- Proof of residence
- Passport size photograph
- Proof of admission
- Fee structure document
- A copy of the visa
- Academic documents
- Salary slips for experienced students
Co-applicants
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- Photo ID proof
- Proof of residence
- Passport size photograph
- Income-related documents
Collateral Documents
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- Property documents
- FD documents
5. Collateral
The question of collateral depends on you. Do you wish to pledge collateral for your education? If you do not want to do the same, you can avail yourself of a collateral-free education loan with IDFC FIRST Bank for up to ₹75 lakhs (Terms and Conditions apply). However, by securing your education loan with collateral, you can acquire loan amounts of up to ₹1 crore.
6. Know the repayment cycle
Finally, you must be aware of every detail of your repayment cycle. You must know when the repayment cycle starts and ends and chalk out your own personal repayment plan, if possible, to avoid any financial troubles while repaying your loan. Consulting IDFC FIRST Bank’s education loan EMI calculator can also help you greatly.
Start today with the six steps mentioned above to go about your education loan procedure – from application to repayment – and reduce stress.
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