Application For Education Loan To Public Bank
Education Loan

Student Education Loan Application in Public Banks

Student Education Loan Application in Public Banks

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Discover the step-by-step process of student loan applications. Get insights on eligibility, documentation, and tips to secure funding for your education smoothly.

GyanDhan
Ananya Ghai
Updated on:  26 Sep 2024  | Reviewed By:  Aman  | 7.85K | 27  min read

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:

Feature Description

Lenders

SBI, BOB, UBI

Loan amount

Up to INR 1.5 Cr 

Interest rates

9.5 - 11%

Moratorium period

Course duration + 12 months

Repayment during course

Nil

Processing time

Up to 15 - 30 days

 

Check loan eligibility for study abroad

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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.

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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.

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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.

  • list items Begin by visiting the official website of State Bank of India at www.sbi.co.in.
  • list items On the homepage, you will see a 'Loans' or 'Education Loans' tab. Click on it to access information and details related to education loans.
  • list items 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.
  • list items Click on 'Apply Now' or 'Online Application': Click on it to begin with the online application process.
  • list items 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.
  • list items Enter the details of the collateral and the co-applicant. Collateral may include property documents, fixed deposits, or other assets.
  • list items Scan your documents and upload the copies during the application process. 
Feature Description

Processing Fees

INR 10,000 + GST (Non-refundable)

Rate of Interest 

11.15% (Floating)

(0.5% concession for female applicants)

Moratorium Period 

Course duration + 6 months

Repayment Tenure 

15 years

Margin Money 

INR 7.5 Lakh-INR 20 Lakh - 15%

INR 20 Lakh - 10%

 

Add SBI Education Loan Application Form

 

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.

 

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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:

  • list items Begin by visiting the Bank of Baroda’s official website (www.bankofbaroda.in).
  • list items Look for the option 'Education Loan' or 'Loans' section on the website's homepage. Click on it to access details related to education loans.
  • list items Before applying for the education loan, ensure you meet the eligibility criteria which is set by BOB. 
  • list items 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.
  • list items 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.
  • list items Upload the scanned copies of necessary documents, such as your admission letter, academic records, identity proof, address proof, etc.
  • list items Examine all the details you've provided, and once you're sure it's correct, submit the application.
  • list items After submission, you will get an application reference number. This reference number can be used to track the status of your application online.
  • list items Bank of Baroda will check your application, and if everything is in order, they will approve your loan.
Feature Description

Processing Fees

INR 10,000 + GST (Refundable)

Rate of Interest 

  • list items
    9.70% - 11.15% (Floating)
  • list items
    (0.20% concession for female applicants of non-premier institutes)

Moratorium Period 

Course duration + 12 months

Repayment Tenure 

10 - 15 years

Margin Money 

0 - 15%

 

Add BOB Education Loan Application Form

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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:

  • list items Visit the official website of Union Bank of India (https://www.unionbankofindia.co.in/).
  • list items Click on the "Education Loan" Section which is usually located in the "Retail" or "Personal Banking" section.
  • list items Click on the "Education Loan Scheme" option to access full information about the education loan, including eligibility criteria, interest rates, and documentation requirements.
  • list items Fill Out the online application form: 
  • list items 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.
  • list items Examine your application form and documents vigilantly before submitting. Any inaccuracies or incomplete information may delay the loan approval process.
  • list items After verifying the details, submit the online application. You will receive an acknowledgment or reference number for your application.
  • list items 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.
Feature Description

Processing Fees

Up to INR 40 Lakh - INR 10,000 + GST

Above INR 40 Lakh - INR 20,000 + GST

Rate of Interest 

  • list items
    Secured loans:

For listed universities - 9.25%

For non-listed universities - 10.5%

  • list items
    Unsecured loans - 9.75%

Moratorium Period 

Course duration - 12 months

Repayment Tenure 

15 years

Margin Money 

  • list items
    Secured loans - 10% (Listed universities) 
  • list items
    Secured loans - 15% (Non - listed universities) 
  • list items
    Unsecured loans - 15%

 

Add UBI Education Loan Application Form

 

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.

 

EMI calculator

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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:

  • list items Find your nearest PNB branch and visit during their working hours.
  • list items Request for a physical application form and fill it out manually.
  • list items Submit photocopies of required documents, such as academic transcripts, admission letter, identity proof, address proof, income proof, and collateral documents if applicable.
  • list items The bank will verify your application and might interview you if necessary.
  • list items 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:

  • list items Visit Punjab National Bank's official website (https://www.pnbindia.in/).
  • list items Find the "Education Loan" section on the website's homepage or you can use the search function to find it.
  • list items 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.
  • list items 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.
  • list items Double-check all the details provided and documents uploaded. Make any necessary corrections. Once you are satisfied with the application, submit it.
  • list items After submission, your application will be processed by PNB. You might be contacted by bank representatives for further verification or details if needed.
  • list items 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.
Feature Description

Processing Fees

1% of the total loan amount

Rate of Interest 

9.55% (Non-listed colleges)

8.80% (Listed colleges)

Moratorium Period 

1 year after the course completion

Repayment Tenure 

15 Years

Margin Money 

15%

 

Add PNB Education Loan Application Form

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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:

  • list items Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.
  • list items Education loan application form.
  • list items Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ driving license/ Aadhaar card.
  • list items Passport 
  • list items Past academic record.
  • list items
    10th standard mark sheet
  • list items
    12th standard mark sheet
  • list items
    Undergraduate result (semester-wise)
  • list items Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
  • list items Proof of admission: admission letter (A conditional admission letter is also applicable).
  • list items Statement of expenses.
  • list items 2 passport-size photographs.
  • list items Loan A/C statement of one year (if applicable)
  • list items Bank account statement of the student (if applicable)

 

Co-applicant’s documents:

  • list items Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
  • list items Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of passport/ driving license/ Aadhaar card.
  • list items 2 passport-size photographs.
  • list items If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.
  • list items Legal documents of the collateral/ property documents.
  • list items 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:

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

 

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

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

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

 

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

 

Mumbai or Pune:

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

 

Hyderabad:

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

 

Bengaluru:

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

  • list items 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.

  • list items 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

  • list items 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.

  • list items 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.

  • list items 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.

 

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Frequently asked questions

Which public bank is best for an education loan?
 

There isn't a one-size-fits-all answer to this question as the best bank for an education loan can vary based on your individual circumstances and the terms offered by different banks. Some popular public banks in India that offer education loans include State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BOB), Canara Bank, and others. It's advisable to compare the interest rates, loan terms, and eligibility criteria of various banks before making a decision.

What is the best way to apply for an education loan at a government bank?
 

The best way to apply for an education loan is to apply through GyanDhan, India’s first education financing marketplace. With partnerships with leading lenders such as State Bank of India, Bank of Baroda, ICICI Bank, Axis Bank, and HDFC-Credila, we provide the best loan option to aspiring students. To secure an education loan from a government bank, check their loan eligibility.

How do I start a loan application?
 

To initiate an education loan application, first, check your eligibility and choose the right lender. Collect the required documents. Next, complete the application online or in person, providing accurate information. If needed, arrange for a co-signer with good credit. Await the lender's decision, review the loan terms upon approval, and accept the loan.

Check Your Education Loan Eligibility


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