Student Education Loan Application in Public Banks

Education loans provided by public banks have become a savior for numerous students, without crushing the academic dreams of many students. Banks governed by the government are known as Public Banks. If you are a student who is in need of a higher loan amount and wants to derive lower interest rates than public banks are your way to go.

Public banks are providing competitive interest rates, flexible repayment options, and often extended grace periods, which ultimately reduces the financial strain on students and their families. If you’re planning to apply for an education loan from a public bank, you will have to fill out the loan application form or you can also go to the nearest branch.

Education Loans from Public Banks - An Overview:

Applying for Education Loans via Vidya Lakshmi Portal

The Vidya Lakshmi portal offers a solo window for students to acquire information and details about various loan schemes provided by public and private banks and make applications for them. You can apply for an education loan via the Vidya Lakshmi portal by following the below steps:

Step 1: Begin by filling out the Common Education Loan Application Form (CELAF). This is an important and initial step for your loan application. Access the dashboard and click on the 'Loan Application Form' tab.

Step 2: Next, click on the orange tab labeled 'Search and Apply for Loan Scheme' on the dashboard. This will allow you to explore and apply for various education loan schemes available.

Step 3: Use the provided filters to refine the search results according to your specific requirements. You can filter the schemes based on factors such as whether it is for domestic or international study, the level of the course, and the desired loan amount.

Step 4: Once you have applied the filters, a list of suitable loan schemes will be displayed. Each scheme will have an option to apply for it.

Step 5: Click on a particular scheme that interests you, and you will be redirected to a page providing detailed information about that specific scheme. Review the details carefully to ensure it aligns with your needs.

Important note: Keep in mind that you can apply for a loan from a maximum of three banks, and only one scheme per bank can be selected for the application.

Applying for an Education Loan via GyanDhan

The procedure to apply for an abroad education loan should always begin from exploring and comparing different lenders and their products. Borrowers win half of their battle as GyanDhan evaluates your profile and chooses the best lender for them. To apply for an abroad education loan through GyanDhan, you need to follow five simple steps mentioned below:

Step 1: Check your loan eligibility.

Step 2: Our expert education loan counselor will check and evaluate your profile.

Step 3: The team of GyanDhan will either arrange a doorstep pickup for your documents or will ask you to upload your documents.

Step 4: Once your documents are uploaded, GyanDhan will move forward with the rest of the formalities.

Step 5: Disbursement of the amount will be done by the bank as per schedule.

Application Process for Education Loan in State Bank of India?

State Bank of India, is one of the greatest public banks in India. SBI is a popular choice for education loans amongst students and their parents. The education loan schemes of SBI are designed to help students and their parents in financing their education related expenditures.

You’ll be glad to know that SBI provides both online and offline modes for applying for an education loan. 

Offline Procedure:
To apply for an education loan in the offline mode, you need to go to the nearest SBI branch and initiate the procedure with the bank. If you decide to go with the offline mode, be prepared to make countless bank visits for the submission of the documents.

Online Procedure:
To apply for an education loan in the online mode, you need to complete the below mentioned steps.

• Begin by visiting the official website of State Bank of India at www.sbi.co.in.
• On the homepage, you will see a 'Loans' or 'Education Loans' tab. Click on it to access information and details related to education loans.
• SBI offers various education loan schemes, so vigilantly select the one that perfectly matches your needs. Go through the details, terms, and conditions of the chosen scheme thoroughly.
• Click on 'Apply Now' or 'Online Application': Click on it to begin with the online application process.
• You will be prompted to fill in your personal, academic, and financial details. Ensure that you have all the required documents in your hand, including identity proof, address, academic records, and course admission letter.
• Enter the details of the collateral and the co-applicant. Collateral may include property documents, fixed deposits, or other assets.
• Scan your documents and upload the copies during the application process. 

Did you know: that GyanDhan is in partnership with SBI? So if you apply for an abroad education loan at SBI through GyanDhan you are eligible for a free doorstep document collection.

Application Process for Education Loan in Bank of Baroda?

Bank of Baroda (BOB) is one of India's leading public sector banks, known for its broad range of financial products and services. Established in 1908, BOB has a powerful presence not only in India but also in several countries around the world. When it comes to education loans, BOB offers competitive options to help students pursue their dreams of higher education both in India and abroad.

Bank of Baroda provides two main channels for applying for an education loan: online and offline.

Offline Procedure:

To apply for an education loan offline, find the nearest Bank of Baroda branch in your locality. Explore various loan options, fill out the application form accurately, and gather all the required documents such as ID, address proof, academic transcripts, and admission letter. Provide your application and documents to the bank's loan department for examination and potential approval based on their criteria.

Online Procedure:

• Begin by visiting the Bank of Baroda’s official website (www.bankofbaroda.in).
• Look for the option 'Education Loan' or 'Loans' section on the website's homepage. Click on it to access details related to education loans.
• Before applying for the education loan, ensure you meet the eligibility criteria which is set by BOB. 
• BOB offers numerous education loan schemes for different purposes, such as studies in India or abroad. Choose the one according to your needs and which suits them the best.
• Click on the option to apply for an education loan online. You will be directed to an application form after which you need to fill in all the required details accurately.
• Upload the scanned copies of necessary documents, such as your admission letter, academic records, identity proof, address proof, etc.
• Examine all the details you've provided, and once you're sure it's correct, submit the application.
• After submission, you will get an application reference number. This reference number can be used to track the status of your application online.
• Bank of Baroda will check your application, and if everything is in order, they will approve your loan.

Application Process for Education Loan in Union Bank of India?

Union Bank of India is one of the well-known public sector banks in India that offers education loans to eligible students to pursue higher education in India and abroad. These loans help students and their parents finance the cost of tuition fees, books, accommodation, and other related expenses. Both online and offline modes are available to apply for an education loan from Union Bank of India.

Offline Mode:

To obtain an education loan from Union Bank of India through the offline mode, you need to visit the nearest branch. Then you can collect the application form and fill it out accurately, attach required documents, and submit it through the representative. Stay updated and in touch with the branch for application updates. Once approved, the bank will disburse the loan per the agreed terms.

Online Mode:

• Visit the official website of Union Bank of India (https://www.unionbankofindia.co.in/).
• Click on the "Education Loan" Section which is usually located in the "Retail" or "Personal Banking" section.
• Click on the "Education Loan Scheme" option to access full information about the education loan, including eligibility criteria, interest rates, and documentation requirements.
• Fill Out the online application form: 
• Upload the scanned copies of necessary documents, such as proof of identity, address, admission letter, academic records, and collateral documents (if applicable). You need to make sure that all documents meet the bank's requirements.
• Examine your application form and documents vigilantly before submitting. Any inaccuracies or incomplete information may delay the loan approval process.
• After verifying the details, submit the online application. You will receive an acknowledgment or reference number for your application.
• You can check the status of your application online using the reference number provided. The bank will communicate with you regarding the status of your application.

Did you know: that Union Bank of India is the only public bank that provides abroad education loans of up to INR 40 Lakh, without any collateral. The Bank approves unsecured abroad education loans for selected courses and universities. To check if your targeted university is listed in the Union Bank’s pre-approved list, request a callback.

Application Process for Education Loan in Punjab National Bank?

Punjab National Bank (PNB) is one of the prime public sector banks in India, offering a range of financial products and services, including education loans to help students pursue higher education in India and abroad. These loans cover tuition fees, living expenses, and other related costs. You can choose between online and offline application modes to apply for an education loan from Punjab National Bank.

Offline Application Mode:

To apply for an offline education loan through Punjab National Bank (PNB), follow the below-mentioned steps:

• Find your nearest PNB branch and visit during their working hours.
• Request for a physical application form and fill it out manually.
• Submit photocopies of required documents, such as academic transcripts, admission letter, identity proof, address proof, income proof, and collateral documents if applicable.
• The bank will verify your application and might interview you if necessary.
• If approved, you'll receive an offer letter with loan terms to review and accept.

Online Application Mode:

Follow these steps to complete the online application process at PNB:

• Visit Punjab National Bank's official website (https://www.pnbindia.in/).
• Find the "Education Loan" section on the website's homepage or you can use the search function to find it.
• Click on the "Apply Now" or "Online Application" link to access the education loan application form. Fill in all the required details accurately, including personal details, educational details, and loan amount required.
• Upload the scanned copies of the necessary documents, such as academic transcripts, admission letter, identity proof, address proof, income proof, and collateral documents (if applicable). Make sure that the documents meet the bank's requirements.
• Double-check all the details provided and documents uploaded. Make any necessary corrections. Once you are satisfied with the application, submit it.
• After submission, your application will be processed by PNB. You might be contacted by bank representatives for further verification or details if needed.
• If your application is accepted, you will receive an offer letter outlining the terms and conditions of the loan. Carefully examine and accept the offer.

Documents Required for an Education Loan

To apply for an education loan at a public bank, you are required to submit or upload the following documents.

Applicants' documents:

• Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.
• Education loan application form.
• Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ driving license/ Aadhaar card.
• Passport 
• Past academic record.

• 
  10th standard mark sheet
• 
  12th standard mark sheet
• 
  Undergraduate result (semester-wise)

• Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
• Proof of admission: admission letter (A conditional admission letter is also applicable).
• Statement of expenses.
• 2 passport-size photographs.
• Loan A/C statement of one year (if applicable)
• Bank account statement of the student (if applicable)

Co-applicant’s documents:

• Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
• Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of passport/ driving license/ Aadhaar card.
• 2 passport-size photographs.
• If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.
• Legal documents of the collateral/ property documents.
• Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).

Income proof for salaried co-applicant/guarantor:

• Salary slips for the last 3 months.
• Copy of form 16 of the last 2 years or copy.
• Bank account statement for the last 6 months (Salary account).
• Brief statement of assets & liabilities of parent/ guardian/ other co-borrower.

Income proof for self-employed co-applicant/ guarantor:

• Business address proof.
• Last 2 years IT returns ( If IT Payee).
• TDS certificate (Form 16A, if applicable).
• Certificate of qualification (for C.A./ doctor and other professionals).
• Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
• Bank account statement for the last 6 months.

Documents required for loan against property:

The list of documents required for collateral-based education loans depends on several factors, primarily: property type, purchase history, and location. Broadly, the following documents are required:

Common Documents:

• Registered sale deed.
• Approved plan or map of the constructed property.
• Chain documents, evidencing the ownership history of the property for the last 30 years.
• Latest property tax receipt.
• Occupancy proof.

Additional documents if you’re applying for an education loan with a property in the following cities:

Mumbai or Pune:

• NA order
• Urban land ceiling order
• NOC from a builder or society
• Share certificate
• Letter of allotment
• Conveyance deed of society
• If CIDCO / MHADA property: NOC and transfer letter

Hyderabad:

• Urban land ceiling certificate
• NA certificate, if not included in the sale deed
• 7/12 extract, if not included in the sale deed
• Encumbrance certificate

Bengaluru:

• RTC (Record of tenancy certificate)
• Conversion order (from agriculture to residential)
• Khata certificate ( A or B )
• Property tax receipt
• Encumbrance certificate

Mistakes to Avoid to get an Education Loan from Public Banks

Applying for an education loan from a public bank can be an important step in funding your education. To ensure a smooth and successful application process, it's crucial to avoid common mistakes that can lead to delays or rejections. Here are few mistakes to avoid when applying for an education loan from public banks:

• Insufficient Research: 

Applying for a loan without carefully researching the terms and conditions, interest rates, and repayment options of different banks. Research and compare loan offerings from various public banks to choose the one that suits your financial needs and offers favorable terms.

• Incomplete Documentation:

Failing to provide all the required documents or submitting incomplete paperwork can lead to delays or rejection. Carefully review the bank's documentation requirements and ensure you submit all necessary documents correctly and in a timely manner

• Inaccurate Information:

Providing incorrect or inconsistent information on your loan application can lead to rejection or complications. Double-check all the information you provide on the application form and supporting documents for accuracy. Be truthful about your financial status and academic history.

• Poor Credit History:

Applying for a loan without addressing or improving a poor credit history if you have one. If you have a low credit score, consider taking steps to improve it before applying for a loan. This may involve paying off outstanding debts or seeking a co-signer with a better credit history.

• Not Seeking Guidance:

Not seeking guidance from financial advisors or loan counselors when needed. If you are unsure about any aspect of the loan application process, consult with financial experts or counselors who can provide guidance and advice.

In Conclusion:

Applying for a student loan through public banks can be a viable and affordable option for those seeking financial assistance to pursue their higher education dreams. Public banks offer competitive interest rates, flexible repayment options, and government-backed schemes that provide a safety net for borrowers. Moreover, the accessibility and widespread network of public banks make them a convenient choice for students across the country.

However, navigating the intricacies of the loan application process can be challenging, and it's crucial to stay informed and make well-informed decisions. This is where GyanDhan comes into play. With our expertise, personalized guidance, and an extensive network of partner banks and lenders, we simplify the application process, help you find the best loan options, and ensure you make the most of your education financing.

So, if you are on the lookout for a hassle-free student loan experience with the added advantage of expert assistance, don't hesitate to give GyanDhan a try. We are here to help you achieve your academic goals without any financial stress. To start your education loan journey with us, check your education loan eligibility.

Frequently asked questions