Studying abroad offers opportunities, but costs are high for Indian students. Student loans make quality education feasible. Wondering 'how to get a student loan in India?' Our guide simplifies the process for your dream course.
Here’s a step-by-step guide that outlines how to take a student loan:
After receiving your college acceptance letter, choose a lender. Prior to that, research and compare interest rates, terms, fees, and affiliated institutions.
After selecting a lender, the next step on how to take a student loan is filling out their online form on the Vidya Lakshmi portal or at their branch office.
Next, you will be called to the lender’s office for a face-to-face discussion. This will include questions about your academic performance, the chosen course/institution, career goals, etc.
Submit necessary identity, income, and academic documents: KYC, marksheets, acceptance letter, fee details, parent/guardian's ITR, bank statements. For loans above 7.5 Lakhs, collateral like FD certificates or land deeds is required.
The next step in how to apply for a student loan is waiting for your approval letter. This letter will be sent once all your documents are vetted. Once you receive the letter, you’ll have to sign a promissory note and other documents ensuring timely repayment of the amount.
After the loan papers are signed, the bank will directly disburse the loan into the college/university’s bank account. Remember, this disbursement can either be partial (semester-wise) or in full.
To simplify the ‘how to get a student loan’ maze, you can keep the following tips handy:
Now that you know how to get a student loan in India, you’re a step closer to advancing your educational journey and future career prospects. With this step-by-step guide to student loans, you can pursue the educational course of your preference without dipping into your savings.
If your course expenses exceed your student loan amount, you can always rely on an instant loan from Fi Money. Fi Money provides instant loans that arrive directly in your savings account. These are pre-approved personal loans made available to select users with good credit scores. On Fi, this process is 100% paperless, and the loans are provided at competitive interest rates — where each user remains in control with complete visibility of all details. Plus, you can avoid EMI late fees by setting up automatic in-app payments.
A student loan is essentially money borrowed from a bank or NBFC to cover higher education expenses, including course tuition fees, books, living expenses, etc. You might need one when your own funds are insufficient.
Researching and finding the right lender is the first step of the ‘how to apply for a student loan’ process.
You need to provide your course acceptance letter, fee structure, marksheets, KYC documents, parent/guardian’s income proof documents, and collateral papers (if the loan is above Rs. 7.5 Lakhs).
Choosing the right one will depend on where you wish to study and which degree you wish to pursue.
After you receive the approval call, you need to sign the lender’s promissory note and other documents assuring them of timely payments.