How to apply for Education Loan

The process of applying for education loans can be quite complicated and stressful. Different lenders have different expectations from the applicant's profile. They also have different lists of universities and countries the applicant can apply to get the loan.

There are multiple documents to be submitted at different stages and it takes over a month to get loan terms and interest rates for repayment.

Let's look at a typical application process undergone when applying for an education loan with Banks and NBFCs.

Banks

You can either go to the respective bank and inquire about the loan process, or you can apply online. Once the loan offer is accepted, the bank will initiate the process by collecting your documents, evaluating the course of study for which you wish to take the loan and then keep you notified. Indian banks typically take over a month to come back with a loan offer and standardized interest rates.

After the loan is sanctioned, it is disbursed in parts, and the financial responsibility of transferring the tuition and lodging fee to the foreign university that you have applied to is upon you.

NBFCs

NBFCs seem more in line with the times. Their application process is faster than the banks, but they are even more stringent than banks since they don’t ask for collateral against the loan sanction.  Applications are mostly offline, and it usually takes over 30 days after the document submission process for you to receive the loan offer and interest rates that you must sign to confirm. You, as a student, are till then sitting on the edge unaware of your interest rates and loan amounts. Here again, the loans are at floating rates, the interest rates and processing fees are high.

What is Leap Finance’s Education loan process?

Leap Finance tries to make the process of a loan application and sanction simple, by keeping a very transparent and upfront approach.

Step 1 – Apply Online and get Education Loan Offer in just 10 minutes

• Complete the application online by filling up all details in the application profile page.
• After you submit your online application (which takes just 10 minutes), we’ll show the education loan offer to you immediately.
• Accept the online offer and select the education loan amount required.
• Get on a video call with the Leap Finance team for a personal assessment.
• After the assessment, you’ll get the provisional sanction letter.

Step 2 – Loan Sanction and Agreement

• At this stage upload all the required documents, and pay 1% of your loan amount as a part of the 3% processing fee to get the official loan sanction letter. You will need the official sanction letter when you apply for the US student visa, and I-20 form.
• After you obtain the visa and I-20, you need to upload the same on the previously created application profile page.

Step 3 – Disbursal and Repayments

• You’ll get the loan agreement where both the parties need to sign the loan contract.
• Leap Finance charges a processing fee of only 3% of the education loan amount, 2% will be charged only when you request funds.
• That’s it. You’re done. Whenever you need the money to be credited, you can raise a request and we will transfer the money.

We offer a direct transfer of funds to the university or the institution of higher studies that covers all the expenses.

Partial monthly repayments of interest, are required during the course for building up a good credit score in both India and overseas. Full repayment in EMIs starts after six months of completion of course.

We know how cumbersome the education loan application process can be and we decided to cut through the clutter and give you a clean, transparent, and simple application process with a stress-free disbursement and fixed intuitive repayment terms.

Other Important Links:

Education Loan Eligibility Criteria - The Complete Guide

Education Loan Interest Rate Details

Education Loan tax benefits Details