Education Loan Policy

1. Objective

This policy defines the framework for sourcing, processing, and facilitating education loans in accordance with the guidelines of partnered Banks and NBFCs. The objective is to ensure transparency, compliance, and smooth loan processing.

2. Applicability

This policy applies to:

• Education loan cases sourced through authorized channels

• Domestic and overseas education loan products

• All education loan applications processed under approved lender programs

3. Eligible Courses

Education loans may be facilitated for students enrolled in:

• Undergraduate and Postgraduate programs

• Professional courses such as Engineering, Medical, Management, Law, etc.

• Approved vocational and skill-based courses

• Education in India and abroad

Final eligibility is subject to the norms and approval of the respective lending institution.

4. Eligible Applicants

• Indian citizens with confirmed admission to a recognized institution

• A co-applicant (parent/guardian/spouse) as required by the lender

• Applicant and co-applicant must meet KYC, income, and credit criteria prescribed by the lender

5. Loan Amount & Coverage

Loan amount and coverage shall be as per lender guidelines and may include:

• Tuition fees

• Hostel and accommodation expenses

• Books, equipment, and study materials

• Travel and insurance expenses (for overseas education)

• Any other expenses permitted by the lender

6. Interest Rate, Moratorium & Repayment

• Interest rate, moratorium period, and repayment tenure shall be governed solely by the lending institution

• Rates and terms may vary based on loan type, course, country, and credit profile

Documents Required for Education Loan

A. Pre-Sanction Documents

1. Academic Documents

• Institute Admission Letter with detailed Fee Break-up

• Academic Mark Sheets:

  • SSC (10th)

  • HSC (12th)

  • Graduation (if applicable)

2. KYC Documents

• Age Proof

• Identity Proof

• Signature Proof

• Residence / Address Proof

3. Income Documents

A. Salaried Co-Applicant

• Latest 2 salary slips mentioning Date of Joining

• Latest 6 months bank statement of salary account

B. Self-Employed (Business)

• Last 2 years Income Tax Returns (ITR) with computation of income

• Last 2 years audited Balance Sheet

• Last 6 months bank statements

• Proof of turnover (latest GST / Sales Tax / Service Tax return, as applicable)

C. Self-Employed (Professional)

• Last 2 years ITR with computation of income

• Last 2 years audited Balance Sheet / Profit & Loss Statement

• Last 6 months bank statements

• Proof of professional qualification

4. Other Documents

• Completed application form

• Latest passport-size photograph, signed across

B. Post-Sanction Documents

1. Loan Agreement

• Duly completed and signed Loan Agreement by the applicant and co-applicant*

2. Repayment Instructions

• Post-Dated Cheques (PDCs) / ACH / Standing Instruction (SI) mandate

• Three (3) security PDCs in case of ACH or SI mode of repayment

Stamp duty shall be paid by the customer as per applicable state laws.

C. Documents Required for Subsequent Disbursements

(To be submitted at the nearest Retail Assets Customer Service Center – CSC)

• Disbursement Request Letter for tranche disbursement, duly signed by the customer

• University / Institute Fee Demand Letter

• Applicant’s Academic Progress Report (previous semester)

• Fresh repayment instructions, in case of:

  • Full PDC submission, or

  • Change / swap of existing repayment instructions

• Payment receipt of the previous semester / disbursement issued by the institute

Important Note

• Submission of complete and accurate documents is mandatory for timely processing.

• Additional documents may be requested as per lender policy or case requirements.