What Documents Are Required For An Education Loan?

Funding higher education, especially in a foreign country, is an expensive affair. The costs have significantly increased over the last few years. However, the extraordinary advantages it adds to your academic profile make it worth the investment. If you need funding support to support access to a top university worldwide, Personal Loan finance for education can be the best option.

When you opt for a Personal Loan for students to finance higher education, you must fulfil the lender’s eligibility criteria and provide supporting documents to qualify without hassle. To know what you must keep handy, let’s explore the document required for a Personal Loan for education.

Documents Required for a Personal Loan Finance

Documents form the basis for loan sanction, depending on your income, credit score, and profile. Before applying for a Personal Loan, you must have the complete list of documents the lender requires with the loan application. Although different lenders may demand unique documents, some common documentation requirements are as follows:

For Salaried Employees

• Mandatory Documents: Dully filled application form and passport-sized coloured photograph
• Identity Proof: Passport, PAN card, Aadhaar card, driving license
• Address Proof: Passport, Aadhaar card, driving license, utility bill, ration card
• Home Ownership Proof: Property documents, electricity bills, maintenance bills
• Income Proof: Form 16, last six months’ bank account statements of the salary account, previous three months’ salary slips
• Job Continuity Proof: Current employer’s appointment letter, previous employer’s experience certificate

For Self-Employed Professionals

• Mandatory Documents: Dully filled application form and passport-sized coloured photograph
• Identity Proof: Passport, PAN card, Aadhaar card, driving license
• Address Proof: Passport, Aadhaar card, driving license, utility bill, ration card
• Office Address Proof: Rent agreement, property documents, utility bills, maintenance bill
• Business Existence Proof: Company’s registration certificate, shop establishment proof, copy of tax registration
• Income Proof: Last two years’ income tax returns, last six months’ bank statement

The Advantage of Online Documentation Procedure

Modern NBFCs like Hero FinCorp do not require you to visit their branch office to submit the necessary documents. You can visit their official website or download their loan app to upload scanned copies of the required documents with the loan application online. It saves you time and effort, making the application process much easier and faster.

Keep digital copies of the required documents handy when filling out the loan application form. Enter the required details carefully and submit the documents online when prompted. The 100% digital and paperless documentation process streamlines loan processing and makes funds instantly available without hassle.

The Significance of Documents for a Personal Loan for Students

The significance of your identity, address and income documentation is much more than just verifying identity for government subsidies and taxation purposes. The documentation also extends to the financial sector, making the Personal Loan application process easier, faster, and more relevant. Since authorised agencies in the country issue these valid documents, they indicate true verification of each Indian citizen. Here are a few reasons why your documents, especially digital, have such immense significance in the world of Personal Loan Finance:

• Streamlined Verification

Proper documentation simplifies the verification process for lending institutions. The unique identification numbers allow accurate and quick verification of an applicant’s identity, minimising the chances of fraud in the application process. Moreover, it eliminates the need for multiple paper proofs, making the process more convenient for lenders and applicants.

• Digital Authentication

Digital documentation provides the benefit of e-KYC, allowing lenders to complete the verification process electronically. Moreover, it eliminates the requirement for physical branch visits and documentation, significantly accelerating the approval process. Aspiring borrowers can upload their documents through the lender’s website or app to let lenders verify their information online.

• Paperless Application

Many reputable finance companies now support 100% paperless applications where they need a few primary documents for verification. Apart from making the application process faster and more efficient, it reduces the environmental impact. You can submit your documents electronically to save time and effort.

• Wider Access

Modern lending companies require minimal documents that all Indian citizens can provide easily. Moreover, many aspiring borrowers cannot visit the lender’s office due to distance or time constraints to submit the required documentation. That means digital documentation provides financial access to a broader population. That is especially beneficial for people in rural areas who cannot provide extensive documentation to get the required funding access.

• Favourable Loan Terms

Proper documentation makes loan providers feel confident about an applicant’s identity, eliminating any risk of fraud and scams. As a result, they may offer favourable loan terms to applicants who fulfil their complete documentation requirements. This includes ample loan amounts, lower interest rates, and desirable repayment terms.

• Remote Application

Online documentation is particularly relevant in the context of digital transformation in India. Aspiring borrowers can apply for Personal Loan finance from the comfort of their homes, irrespective of location and convenient time. All they need is digital copies of the required documents and a stable internet connection. Since these documents streamline and simplify the application process, they have significantly transformed how Personal Loans are sanctioned in India.

• Financial Stability Assessment

Lending companies assess applicants’ financial stability by evaluating their income and financial obligations. The financial documents they demand provide a comprehensive outlook of the applicant’s financial condition, helping loan companies make informed decisions about loan sanctions, interest rates, and other terms and conditions.

• Evaluation of Repayment Capacity

Lenders expect borrowers to repay their loans on time without any missed EMIs. Therefore, they look at the applicant’s finances to determine their repayment capacity. They prefer applicants with high incomes and fewer financial obligations so they can manage their EMIs conveniently. Documents like bank statements, income tax returns, and salary slips show income inflow and outflow, letting them decide whether to approve the loan.

If you plan to apply for Personal Loans for students, check and fulfil the lender’s documentation requirements carefully to get the best loan plan. At Hero FinCorp, you can get Personal Loan finance of up to Rs 5 Lakh to support your education in your desired course or institute and fulfil your academic dreams.