Education Loan in Pune

Pune residents can apply for education loans from public, commercial, and NBFC banks totaling up to 1.5 Cr, with interest rates starting at 8.30%, to study anywhere in India and abroad.

One of the most developed cities in India is Pune, from which aspirational students travel to study outside in the United States, the United Kingdom, Canada, Australia, and many other nations in order to launch prosperous careers.

 

*Note: Upon loan approval, students are required to pay an upfront fee of $100 to receive their sanction letter.

In order to process and validate a student's loan profile, the banks require certain information accompanied by documentation and verification. Students in Pune who wish to apply for an education loan must provide the following paperwork:

Section 1: Application Form accompanied by Two Photos

Two passport-sized photos and a fully completed education loan application form are mandatory. It is also appropriate to submit a hard copy of the online form.

Section 2: Basic information about the applicant, co-applicant, and/or guarantor

1. 1. Identity verification

Aadhar card PAN card

Passport of the student

2. 2. Address Proof (the student must submit two separate residency proof documents if their current and permanent addresses are the same).

Ration card

Phone bill 

Electricity bill 

Voter ID card 

Aadhaar card

Bank passbook statement

3. 3. The co-applicant's documents

The co-applicant must submit their bank statement for the previous six months if they are salaried.

If the co-applicant works for themselves, they must provide proof of their previous year's worth of business transactions.

4. 4. The assets and liabilities statement that the bank staff have approved

Section 3: The applicant's academic records

Evidence of a student's enrollment in a course or university that qualifies

The written total course cost and the due dates for payments

Proof of passing the relevant exam, such as the GMAT, GRE, or IELTS

Academic transcripts for classes 10, 12, and Bachelor's 

Section 4: Financial co-applicants' income verification papers

If Salaried 

Pay stubs over the previous three months

Previous two years' ITRs 

Previous two years' Form 16 

Office ID card details

If the applicant is self-employed

Income Tax Returns for the Past 3 Years

The three-year balance sheet with profit and loss statements.

Verification of the company's address

Section 5: Additional Records

A statement from the loan's co-borrower stating that they would pay for any additional costs not covered by the education loan

Additionally, the co-applicant and student must provide a joint affidavit in the format required by the bank.

Section 6: Supplementary documents (if relevant)

Payment receipts will be necessary if any payments are made in the university's name.

Last year's pending loan statement

Students' certificate of academic gap, printed on 100 rupee stamp paper, explaining the cause for the gap

 

Expenses Covered

The following expenditures are paid by students in Pune who obtain an education loan from banks or non-bank financial institutions:

Course Payments

Fees for lodging and hostels

The price of stationery and books

Expense of travel (including airfare, if the student is traveling overseas)

Expenses for food and mess

The expense of the project, the uniform, and the thesis work

Cost of buying a computer

If the student provides adequate documentation of their expenses, the education loan will also pay all additional study-related costs incurred during their time in India or overseas.

It is critical to thoroughly examine the loan terms and conditions to determine what expenses are covered in education loan. The lender may have certain rules or limits regarding how the loan might be used. 

Moratorium Period 

The moratorium period for an education loan is a set period of time during which the borrower is not obligated to make any loan payments. The length of the course plus an additional six months or a year, depending on the bank and kind of school loan, is often the moratorium period.

Loan Margin

Every bank has a loan margin, so applicants who apply for an education loan do not receive the full amount requested. Loan margin is a percentage-based fraction of the total loan amount that the borrower must arrange and provide to the bank in order to get the remaining funds as an education loan from the banks.

By maintaining a lending margin, banks often assess the borrower's ability to make payments.

A 5% loan buffer is typically required in order to study in India.

A 15% loan margin is required in order to study overseas.

The size of the loan margin is determined by the type of education loan as well as the location where you intend to study.

Collateral Margin

Immovable properties and movable or liquid securities pledged in the bank are the two primary forms of secured education loan with collateral that students can use to secure loans from banks to study in India or overseas.

The proportion of the value of the pledged collateral that a loan can be extended to the applicant is known as the collateral margin. Banks assign varying percentages for each sort of collateral on which they offer education loans, depending on the type of collateral. 

Depending on the type of liquid collateral, public banks such as the State Bank of India offer education loans up to 100% of the value of the immovable property used as collateral. Other banks, however, only offer education loans up to 100% of the liquid security.

FD, policy of insurance, and government bonds

A home or flat in a residential area with all the necessary paperwork

Commercial real estate

Land used for agriculture

Along with the standard collateral paperwork, students must provide the bank with the requisite immovable collateral documents listed below:

Payment receipts for the builder or vendor

If the property is really ancient, a structural analysis report will also be necessary.

If the property is intended for resale, a share certificate will be necessary.

A NOC in the specified format from society administration or the builder

Confirmation of the power of attorney from the builder

The conveyance deed of property

If the property is new, you'll need to get a Commencement Certificate (CC).

These documents are needed in order to apply for a collateralized education loan in Pune. State-by-state variations exist in the documentation requirements, nevertheless. Speak with your finance officer for the most up-to-date list of necessary paperwork. Consult your financial officer, who will provide you with a thorough checklist of documents. 

Banks must adhere to extremely tight guidelines and procedures in order to grant student loans; even the slightest error in a single document could result in your loan being denied. The following are some common reasons Pune student loans are denied:

The assets of the pagdi system are not transferable.

Pledges of real estate given by the government to slum dwellers as rehabilitation assets are not allowed.

If the MHADA land is less than ten years old, it is unsuitable.

Pune's government banks would not accept apartments or houses as collateral without occupancy certificates.

For CIDCO properties in Pune, an official letter from the lender to the CIDCO authorities, a letter from CIDCO, two affidavits, and a letter in favor of CIDCO are required. The creation of associations is not authorized. If the transfer deed is available and present, CIDCO NOC is required; otherwise, Builder NOC is needed.

If your loan application is denied, it should contain any of the previously specified requirements. 

In Pune and exploring education loan options? GyanDhan is your go-to platform, offering a pathway to secure financing for your higher studies in India or abroad. Our education loan experts help you in securing high loan amounts under favourable terms with a track record of higher loan approval rates. We also assist with pre-visa loan disbursement, crucial for your visa application. Best of all? Our expert, end-to-end service comes at absolutely no extra cost to you. Check your loan eligibility on GyanDhan now and take the first step towards realizing your academic dreams.