Education Loan Documents for Unsecured loans from Loan applicants

Documentation is a crucial part of any loan process. The education loan process for an unsecured education loan is no different. Many a time, we receive multiple queries regarding the various education loan documents in the unsecured education loan process. 

If you go through the previous Loanflix episodes, you may come to realize that we have explained the entire checklist of education loan documents for collateral education loans in episode 4. This article highlights the education loan documents mostly asked by lenders for non-collateral education loans.

The 30th episode of Loanflix will tell you all about the documents required for an education loan without collateral. Our education loan expert, Damini, speaks about the different documents required for an unsecured education loan in India.

We have divided the education loan documents into different categories for ease of understanding. Loan applicants, as well as their co-applicants, are required to submit different sets of documents. The education loan documents that are required by private lenders from co-applicants for unsecured education loans will be listed first. 

The list of education loan documents for co-applicants is again different for co-applicants who are employed and those who run their own business.

Co-applicants who are salaried are required to submit the following list of documents that act as proof of income.

1. Salary Slip of last 3 months or Salary Certificate 
2. Copy of Form 16 and the Last 2 years' IT returns acknowledged by the IT Dept
3. The last 6 months of the bank account statement of their salary account

If your co-applicant's source of income is a business they own, the documents mentioned in the following list are to be submitted by your co-applicant.

1. Business proof (If applicable)-(Address proof, Gomasta License, Registration Certificate, Service Tax
   Registration)
2. Bank statements for the previous six months.
3. ITR documents of the previous three years.
4. Certificate of qualification (for professionals like C.A./ Doctor, etc)

• Co-applicants running a small-scale business, for example, selling sarees from their own homes and have not registered their business, can provide photographs of the stock being sold by them, proving the same, to the lending banks as proof of income. This is one of the primary documents for an education loan.
• Individuals running well-organized businesses have a higher chance of getting unsecured education loans due to the easy availability of education loan documents showing proof of income.
• While naming co-applicants for unsecured education loans, remember that only individuals who are immediate family members and also possess the above-mentioned education loan documents should be given the first preference.

When it comes to unsecured education loans, it is better to name salaried co-applicants possessing the documents required for unsecured education loans, as co-applicants.
Are you someone who is confused about who to name as your co-applicant for your unsecured education loan? You may seek our help by requesting a callback from our team. Moving on, let’s take a look at the list of education loan documents required by private lenders from loan applicants.

Education loan providers often pay close attention to a loan applicant’s/ students' academic documents while considering their request for an unsecured education loan. Students are required to submit the following education loan documents to private lenders for unsecured education loans.

1. High school and middle school exam certificates, i.e., the passing certificates for 10th std, 12th std. 
2. Degree certificates. If you have just written your final exams and do not possess your final year degree certificate, then you can get your loan approved based on your pre-final year/semester mark sheets.
3. Test scorecards of all the eligibility tests you have passed (GRE, GMAT, IELTS, TOEFL, SAT, etc.)
4. The admit letter or letter of offer from your university abroad. Take note that for some countries, NBFCs approve education loan sanctions just based on your eligibility test scores.

In case the loan applicant is a working professional then the following income-related documents are to be submitted by them:

1. ITR documents of up to three years or for whatever duration the loan applicant has worked.
2. Previous three months’ salary slips.
3. Work-experience letter.

If you are still seeking the exact list of documents asked by private banks and, NBFCs for unsecured education loans, do not hesitate to get in touch with the financial team of WeMakeScholars for guidance and assistance with this or any other steps involved in the unsecured education loan process.

Apart from the academic documents of the applicant and the income-related documents of the co-applicant, there are certain common documents that are to be submitted by both, the loan applicants as well as their co-applicants. 

1. KYC (Know Your Customer) Documents to be submitted at NBFCs
2. Passport-size photograph
3. Pancard Copy
4. Aadhaar Card Copy
5. A copy of the loan applicant’s (student) passport.

Any education loan process, especially for unsecured loans, cannot go smoothly in the absence of the correct education loan documents. Being aware of the documents required for an education loan can prove to be a blessing for those who are confused about the same. 

Through this article, our team at WeMakeScholars wishes to convey the correct information about the exact list of documents required for an education loan without collateral.