When is the right time to apply for an education loan?

In this video, Mr. Neeraj gives a brief summary on how to apply for an education loan. Once the student shortlists the country and institution he applies to the relevant institutions. Once the student secures an offer-letter to study the student then approaches banks/private agencies for education loans. In the interim between applying for a course and receiving the offer-letter; students should research and find the best loan-option and also check if he/she is eligible for loans.

The completion of the KYC or ‘know your customer’ process is an important part of the loan-sanction process. Only if the loan-provider is assured that the student and co-borrower will be able to repay the loan and the admission documents provided by the student are correct will the loan get sanctioned.

Avanse examines the details of the student and the co-borrower and checks if the co-borrower will be able to repay the interest amount when the student is studying. Avanse checks what kind of course the student has opted for and which institution the student has opted. Essentially, the loan-provider should have faith in the student and the co-borrower’s financial strength when sanctioning the loan. Based on risk-assessment loan-providers fund those course, which ensure that the student has a bright future and potential placement and the student will be able to repay the loan.