Education loans are undoubtedly a boon to students who would otherwise be unable to pay the exorbitant expense of education in today's world. 

Since the outbreak of the pandemic, as everything goes digital, students can now apply for education loans online. However, there are a few things to consider before applying for an education loan online, things that you should be aware of in order to make a more informed decision.

In this article, we'll tell you not just how to apply for education loan online but also all of the prerequisites and requirements you must meet before doing so. Continue reading this article and equip yourself with the knowledge essential for getting an education loan online. 

First, you should know that there are two types of education loans that you can apply for

• Collateral education loan- To obtain a loan, the borrower must pledge security. A home, flat, non-agricultural land, fixed deposits, insurance policies, and government bonds may all be used as collateral.
• Non-collateral education loan- The borrower is not required to put up any kind of security. Instead, students must fulfill specific requirements set by the lending institutions.

An overview of education loan options available in India

The information in the table below pertains to education loans for abroad education. 

Eligibility required to apply for student loan online

The eligibility parameters may vary significantly depending on the kind of education loan (collateral vs. non-collateral) and the type of lender (public vs. private).

The eligibility parameters for a collateral education loan from a public bank are far less stringent when compared to the eligibility parameters set by private lenders for a non-collateral education loan.

The basic eligibility criteria are - 

• The candidate must be a citizen of India
• The candidate must be willing to pursue full-time/part-time courses for undergraduate /post-graduate studies.
• The candidate should have secured and got the admission letter from a recognized university.
• The candidate needs to have a co-applicant. Any of the following individuals can be a co-applicant: parent/guardian or spouse/ parent-in-law/ siblings/ first cousins.

You can read this article to learn more about the banks' criteria for granting education loans to students- Eligibility for Education Loan: Criteria for Loan Applicants.

Documents you need to apply for an education loan online

When it comes to getting an education loan, there are several steps to follow, one of which is documentation. In order to begin the loan application procedure, students must submit specific documentation either online or in person at a bank's branch. 

You can upload scanned papers while applying for an education loan online. This documentation process is critical for the lenders to check the applicant's reliability. The following are the documents that must be submitted-

For students 

• KYC (Know Your Customer) Documents 
• Duly filled and signed loan application form with photos attached
• Passport (mandatory for abroad education)
• Academic Records (S.S.C, H.S.C, and Graduation Result)
• Proof of admission
  

For Co-applicant

• Payslips for the last three months.
• Receipts for ITR filings of the previous two to three years.
• Bank statement of the previous six months.
  

Documents relating to collateral will also be required for collateral education loans. You may also be asked to bring in extra collateral papers for different states or locations. 

You can learn more about the documents required by different lenders for different types of loans by reading this article-  Education loan documents required by Private and Government banks.

How to apply for Education loan online?

Students may get overwhelmed while enquiring and gathering information on loan options offered by numerous lenders. To address this, the Indian Government in the year 2015 launched the portal - Vidyalakshmi, an online portal where students can compare and apply for education loans from multiple lenders online.

While applying for a loan through the Vidyalakshmi portal, you can only apply to one loan scheme from one bank and a maximum of three loan schemes from three separate banks at a time. The portal allows you to keep track of the status of your application. If the status is 'on hold,' it implies you must supply further information before the loan application can be completed and sanctioned. In addition, if your application is denied, you can contact the concerned bank directly. 

To know the complete process of the Vidyalakshmi portal, you can either read our dedicated article on the same subject here: Vidyalakshmi Portal - Schemes, Application procedure, tracking process, or simply watch our 27th episode of the LoanFlix series below, 

Keep the following factors in mind when looking for education loan schemes online-

• Maximum loan amount
• Minimum education loan interest rate
• The minimum margin for loan repayment
• Maximum moratorium period

VidyaLakshmi is primarily designed to handle huge volumes of both local and international education loans in India. As a result, despite the fact that there are fewer applications for abroad education loans than domestic ones, your abroad loan application is nonetheless stuck in an endless "Wait" line due to the enormous number of Indian study loans. 

You should approach and apply through WeMakeScholars, a Government-funded organization. WeMakeScholars works digitally and can process applications PAN India. We are associated with 10 plus public banks, private banks, and NBFCs, it might be a good alternative if you are specifically looking for an overseas education loan.

We connect you with multiple lenders online after assessing your profile and help you get the best deal possible. You can request a callback to get in touch with us. 

How to apply for an education loan via WeMakeScholars?

• Visit our website and click on the request a callback button
• Select the region and then click proceed 
• Fill in the form with the required basic information, course information, and so on.
• Within 1-2 working days of submitting your request, you will receive a call from our financial officer.
• Your financial officer will be able to assist you in selecting the right lender for you after receiving some further information about your education loan requirement.
• Your designated financial officer will send you a link to a secured portal, where you are required to upload all the relevant documents listed by the banks. 
• Once you've uploaded all of the necessary paperwork, your financial officer will connect you with numerous lenders that are most suited to your needs and assist you in getting the best offer possible. 

Lenders may ask you to send your documents individually by mail or WhatsApp, but this is discouraged since the confidentiality of the documents is jeopardized, instead ask the lender to access them from the WeMakeScholars portals only. WeMakeScholars is known for keeping the confidentiality of the documents that students upload to our secured link.

Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, New Zealand, France among others.