The public sector banks in India have a very good education loan scheme for students pursuing higher education in general and professional courses in particular. The banks have published on their websites the rules and requirements for these loans and also provide facilities to apply on-line and also to download the application form. However many students do not take advantage of this on-line facility and directly approach the bank managers without accessing and/or understanding this online information. Many times the bank managers flatly deny the loan request or impose extra requirements than necessary. Following step by step guide will help students to access this information and exercise their right to get the loan.
- Before CET Counseling
Make a list of Public Sector Banks nearest to your family home and rank them starting with the nearest.
Go onto their Education Loan webpage on the internet and print information about the bank’s education loan scheme, study it and understand the eligibility requirements, eligible expenses and conditions for various levels of loan amount. Check whether the bank has online application facility. List the phone numbers and names of the bank manager and the assistant division manager.
Decide on amount of loan you need to complete your education. For example, for 4 years of engineering, with or without hostel, Rs. 4 lakhs or less is currently sufficient for most of the colleges in Karnataka. Understand the bank conditions for the loan amount you need. Conditions to look for are collateral security, third party guarantee, margin, interest rates and repayment period.
Download the loan application form, print it and make list of documents needed to be attached to the application form.
Collect as many needed documents as and when possible
- At CET Counseling
Talk to the bank loan kiosks at the CET counseling center and ask for education loan. Choose the bank nearest to your home if present at the center; otherwise go to the next one on your list prepared in step 1. Some banks will even give you a DD required for the payment of the fees at the counseling. Ask for loan amount you decided in step 3 or Rs 4 lakhs for engineering or more for medical or other courses. Get a letter from the bank officer at the counseling center that typically says that the loan is approved in principle.
After Final Selection of the College You Will Attend or After Admission
Apply online on the banks website, if this facility is available. You will receive an email with the in principle approval in a short time, typically 7-10 days.
Get a letter of expenses and admission from the principal of the college you going to attend. Collect all the documents that are required with the education loan application from the list you made in step 4.
Fill up the application form you printed in step 4.
Submit the application and the required documents to the bank nearest to you. Get a written receipt of the application submitted with the date of submission stamped. Getting the receipt is the most important part of the application process. Once you have a written receipt, the bank loan officer is required to follow a well defined and time limited procedure and approve or disapprove the loan. If the bank officer does not cooperate, do not get discouraged. Politely and firmly insist on getting the receipt. Visit the bank multiple times if necessary.
The bank officer may ask you to provide a third party guarantor or collateral security even if requested loan amount is less than Rs. 4 lakhs. Show the manager the printout from the bank website and politely tell him that neither is required if the requested loan is less than Rs 4 lakhs. Make sure that the bank officer knows the fact that you are only asking them to follow their own bank’s rules.
If the bank is still not cooperating, seek out help of a prominent person in your community who may be able to help you with the bank manager.
If that is not possible, talk to the assistant division manager of the bank and explain your situation and request him to help you with processing of the loan application.
If you are still having difficulties, email me at appam@yahoo.com with your phone number and I will help you.
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