Guide on Affidavit for Education Loan

If you are planning to get an education loan, you must be aware of this document known as an affidavit. Education loan affidavit requirements arise when you plan to take an education loan from a lender. In this blog, we will understand in complete detail about affidavit and affidavit format for bank loans. Think of it like this: it is basically your promise, in writing and witnessed, to pay back the loan. It is a formal declaration where you, the borrower, assure the lender that you will honour the agreed-upon repayment plan. Lenders usually require this when you apply for an education loan for your higher studies. 

The affidavit for education loan is a legally binding document. Giving a signed and witnessed affidavit for education loan means you are legally obligated to do what you say you will do in it. The following information is mentioned in a loan affidavit sample:

 

• 
  Name
• 
  Age
• 
  Address
• 
  Contact number
• 
  Loan details like loan amount, interest rate, repayment tenure, and any other special conditions

To make it official, you have to sign the affidavit for an education loan in front of a notary public or a magistrate. They are like official witnesses who confirm that it is really you signing the document. This makes the affidavit legally sound and provides proof if there ever happens to be a disagreement or legal issues.

 

Now let us understand, the most important reasons for an affidavit for an education loan:

Verification of Information:

Affidavits serve as a formal means of verifying critical information provided by the borrower, including identity, academic history, and intended use of funds.

Showing Borrower’s Commitment:

The signing of an affidavit shows the borrower’s commitment to the loan terms and conditions. It confirms their financial responsibility and intent to repay the loan as agreed.

Assessment of Financial Obligations:

Lenders use affidavits to check the borrower's existing financial obligations, particularly regarding other education loans. This also helps in checking the borrower's overall debt.

Assessment of Source of Funds:

Affidavits may be required to check the source of funds for loan repayment. This information enables lenders to evaluate the borrower's financial stability.

Legal Protection and Documentation:

Affidavits provide crucial legal documentation of the agreements and understandings between the lender and borrower. This serves as a safeguard for both parties in the event of future disputes or legal proceedings.

 

Below are some of the types of affidavits for education loans:

 

• 
  General Education Loan Affidavit: A declaration by the borrower about their personal and loan details, confirming their eligibility and intent to use the funds for education.

• 
  Affidavit for No Other Loan: A statement confirming the borrower has not taken other education loans for the same course.

• 
  Affidavit for Gap in Education: An explanation for any breaks in the borrower's education history.

• 
  Affidavit for Source of Funds: A declaration by the borrower or co-applicant about the source of funds for loan repayment.

• 
  Affidavit for Co-Applicant: A declaration by the co-applicant agreeing to be jointly responsible for loan repayment.

• 
  Affidavit for Collateral: A declaration about the ownership and value of any collateral provided for the loan.

Now, as mentioned before, here is the bank affidavit format for the education loan. Please note that this sample affidavit for an education loan may vary depending on the lender you choose, but more or less, the details will remain the same. We have given a sample format for SBI, please take a look below:

 

We, Sri/Smt. _______________________________________________________________, (1) Son/Daughter of ____________________________________________________________

(Name of Father), aged around ____________ years old.

 

(2)______________________________________ (Name of Son/Daughter) aged around _________ years old. The following is a solemn affirmation and statement made by the son/daughter of ____________________________________, both of whom reside at ____________________________________________________________________________

(Address)

 

1. That we, the aforementioned deponents, are permanent residents of the address mentioned above.

 

2. That, during the term ____________________, I, the deponent No. 2, have been chosen to enroll in and/or join the _______________________________________________________ course in the College/Institute ___________________________________________________.

 

3. That, in order to pursue the aforementioned course, neither of the deponents has taken out an education loan from a bank or any other financial institution.

 

4. That, individually and collectively, the deponents thus declare that we have never missed a loan payment.

 

5. That, as deponent No. 1, I now declare that I will reimburse the State Bank of India for any damages incurred in the event that a loan is approved for deponent No. 2, my biological ward.

 

6. That, in order for a study loan to be approved in the combined names of deponent No. 2 and deponent No. 1, this affidavit must be presented to the State Bank of India (Branch).

 

7. That, on behalf of deponent No. 2, we, the deponents, hereby certify that she is not getting any funding for this course from the organization or any other source, including scholarships or fellowships.

 

8. To the best of our knowledge and belief, the facts mentioned above are accurate.

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Identified by me Parent/Daughter 1. _______________________________ 

Daughter/Son (Parent) 2. __________________________

Advocate, City

(Dependents)

SWORN BEFORE ME

1.___________________________

2. __________________________ (City) NOTARY PUBLIC

A gap certificate for an education loan is a formal, written explanation of any breaks in your educational history. This document is signed in front of a notary officer and on stamp paper, which serves as an official record of your activities during those periods. 

The following are the important reasons for the affidavit for the gap in education loans:

 

• 
  It shows the reasons for the gap, which could include travel, work, or personal circumstances, and affirms that these activities were lawful. 
• 
  It is required by educational institutions and lenders to provide context for your academic timeline.
• 
  It assures the legitimate nature of the break and maintains transparency in your records.

Below is the format for the gap certificate affidavit:

 

We have given an affidavit format for the gap certificate. Please note that the format below may vary slightly but the main content remains the same:

 

I, (full name), living at (Residential Address)_________________________________________, the son/daughter of _______________________________________(Father/Mother/Guardian's Name), certify and affirm the following:

 

I live at the address given above.

I successfully finished (Degree/qualification)___________from__________________________ (Name of the school, college, university, or institution attended)________ in (Month and year of passing).

 

Furthermore, I have not enrolled in or attended any other school, college, university, or establishment since I left because of _______ (explanation for the gap)___________________.

 

OR

 

I worked as a (position/designation) at _(Company Name) from _______ to _______ during this time.

The interval between ___________ and _________ was the gap.

I didn't engage in any unlawful or legally forbidden activities throughout the gap time.

No criminal case is currently underway against me in any legal jurisdiction.

‍

The deponent's (student's) signature

‍

Verification:

I thus attest that, to the best of my knowledge, the aforementioned statements are true and correct, and that I have not withheld any relevant information. I accept full responsibility for my admission being cancelled if the information I submitted turns out to be false in the future.

‍

The deponent's (student's) signature

‍

Date:

Location:

Please keep in mind the following points before signing the affidavit:

 

• 
  Read the affidavit document carefully before signing it
• 
  As mentioned earlier, it is a legally binding document, which means the information you enter must be correct and up to date.
• 
  The information entered by you should match with your official ID documents like Aadhar Card, PAN card and others.
• 
  Once you have signed the affidavit, make sure you keep a copy for your records. You may need to refer to it later.
• 
  If you have any questions about an affidavit, you should consult with an attorney before signing it. An attorney can advise you on the legal implications of signing the affidavit.

Securing an education loan whether secured or unsecured, is a significant step towards achieving your academic goals, and an affidavit plays a key role in this process. We have explained the purpose and importance of this document earlier in this blog.

 

If you are considering an education loan, GyanDhan offers a streamlined, simple, and student-friendly process for loan application. All you need to do is check your loan eligibility and one of our expert education counsellors will be dedicated to you, who will carry forward all education loan formalities for you. We have a strong network with almost all major lenders and thus assure you the best education loan for abroad or for India for your higher studies. We can recommend education loans with lowest interest rates, margin money, longer repayment tenure and more. GyanDhan is committed to helping you realize your educational aspirations.