How to Get Loan on Marksheet: Eligibility, Interest & Required Documents

Pursuing higher education is an expensive affair in India. With tuition fees rising yearly, many meritorious students cannot pursue their dream courses due to financial constraints. Here are the process of How to Get Loan on Marksheet?

This is where marksheet loans come into the picture. Marksheet loans, also known as education loans or student loans, provide the necessary funds to deserving students looking to advance their academic and career prospects.

What is a Marksheet Loan?

A marksheet loan is an education loan available to students wanting to pursue recognized full-time graduation, post-graduation, diploma, and certificate programs from accredited colleges and universities. Are you required a loan from Google Pay? Here is the process of How to get a Loan From Google Pay.

These loans help students pay for tuition fees, examination fees, library fees, hostel fees, travel expenses, computer and accessories, and other related course expenditures. A key feature of marksheet loans is that no repayment needs to be made during the course duration, providing much-needed financial relief.

Banks, NBFCs, and dedicated education loan providers offer marksheet loans at attractive interest rates without requiring any collateral for loans up to Rs. 7.5 lakhs.

Eligibility Criteria for Marksheet Loans

The eligibility criteria to avail of marksheet loans are straightforward:

  • The minimum age should be 18 years while the maximum age can range from 55-65 years depending on the lender
  • Confirmed admission letter from recognized college/university
  • Should be an Indian citizen residing in India
  • Strong academic record – minimum 60% marks in Class 12 / Graduation
  • Parent/Guardian as joint borrower/guarantor

Meeting the eligibility ensures quick processing and faster disbursal of the marksheet loan amount.

Documents Required for Marksheet Loans

When applying for a marksheet loan, students need to submit certain documents as proof to the bank or lender. The common documents include:

  • Duly filled loan application form
  • Identity and address proof (Aadhaar, PAN Card, Voter ID, Driving License etc.)
  • Academic credentials (10th, 12th marksheets, graduation degree etc.)
  • Admission confirmation letter from college/university
  • Fee structure/prospectus of the institution
  • Income proof of co-applicant/parent/guardian
  • Bank account statements
  • Passport size photographs

Having these documents ready in advance will make processing of the how to get loan on marksheet application faster.

How to Apply for Marksheet Loans?

Marksheet loan application process nowadays has become smooth and streamlined. Here are the step-by-step processes to apply:

Step 1: Check Loan Eligibility

The first step is to evaluate eligibility criteria based on age, academic record, course pursuing, annual family income etc. This gives an idea of the chances for loan approval.

Step 2: Calculate Funds Required

Add up the total fees payable to college/university, hostel fees, mess charges, cost of books/uniforms, travel expenses etc. This gives the loan amount to be requested. Keep buffer for unexpected costs.

Step 3: Choose a Lender

Research interest rates and offerings by different lenders like SBI, Punjab National Bank, Bank of Baroda, HDFC Credila etc. Compare terms and apply to one offering competitive rates.

Step 4: Documents Preparation

Keep handy all the essential documents mentioned above like identity/address proof, academic marksheets, income proof etc. Correct documentation speeds up processing.

Step 5: Submit Application

Fill all details in the loan application form and submit along with documents to the lender online or nearest branch. Double-check to avoid errors.

Following these steps correctly helps students looking for how to get loan on marksheet get faster approval and loan disbursal into bank account.

Features and Benefits of Marksheet Loans

Some useful features and advantages of availing marksheet loans are:

Collateral-Free Loans – No need to pledge assets or securities for loans up to Rs. 7.5 lakhs

Nil Repayment During Course – Moratorium period covering entire course duration offers big financial relief

Longer Repayment Tenure – Repayment tenure extends up to 15 years after course completion

Attractive Interest Rates – Rates of interest are softer compared to other loan products

Flexible Repayment – Option to choose between EMIs or pay a percentage of income after getting a job

Tax Benefits – Deductions up to Rs. 2 lakhs per annum under Section 80E of Income Tax Act

These benefits make marksheet loans extremely student-friendly in supporting their educational aspirations.

Interest Rates on Marksheet Loans 2024

Banks and private lenders offer marksheet loans at competitive interest rates linked to external benchmarks like repo rate. Here are the latest interest rates:

LenderInterest Rates
SBI Student Loan8.25% onwards
Bank of India8.35% per annum
Axis Bank Education Loan10.75% per annum
HDFC Credila11% per annum
Avanse Financial Services11.5% per annum

Rates can be higher for courses abroad. Specific student concessions and women applicants may get slightly lower interest rates. Students must compare interest rates before applying for how to get loan on marksheet.

Maximum Loan Amounts

Every lender fixes the maximum loan limit based on course pursuing and expenses. The highest loan amount is for studying abroad while domestic marksheet loans have lower ceiling.

For studies in India – Maximum Rs. 10-15 lakhs

For studies overseas – Up to Rs. 1.5 crores

Reputed colleges command higher loan eligibility. Check with bank for course-wise loan limits before applying.

Repayment Options on Marksheet Loans

Marksheet loans offer the flexibility to choose repayment structure convenient to students:

EMI Mode: Fixed EMIs encompassing principal + interest starts 1 year after completing the course

Percentage of Income: 5-15% of monthly income to be paid as EMI after getting a job

Most students prefer income-linked repayment option instead of fixed EMIs. Banks allow switching between the two modes later during repayment tenure.

Top Banks for Marksheet Loans

Some leading nationalized and private banks in India offering marksheet loans with attractive features are:

State Bank of India (SBI) – Over Rs. 1,300 crores disbursed to 3+ lakh students

Bank of Baroda (BoB) – Sanctioned Rs. 970 crores to over 1 lakh students

Punjab National Bank (PNB) – Loan of Rs. 10 lakhs on overseas courses. Concession for girl students

Axis Bank – Offers higher quantum of loan for studies abroad

HDFC Credila – 100% funding for tuition fees. Fast processing

Students must compare interest rates, fees, loan amount, application processing turnaround times etc. before deciding the most suitable lender for how to get loan on marksheet.

How to Get Interest Subsidy on Marksheet Loans?

To make marksheet loans more affordable for economically weaker students, central and state governments offer the following interest subsidies:

Central Sector Interest Subsidy – Full interest subsidy for the course duration and moratorium period under the Centrally Sponsored Scheme

State Government Subsidies – Varies for every state. Subsidy amount credited directly into loan account

To receive interest subsidy, students must provide income certificate, caste certificate, course details etc. during application itself for necessary verification.

Precautions When Applying for Marksheet Loan

Following certain precautions becomes important when students apply for marksheet loans:

  • Read all terms and conditions carefully before signing any loan agreements
  • Avoid applying separately to multiple lenders for same loan requirement
  • Disclose existing loans or debts while applying to enable correct eligibility assessment
  • Never provide false information or submit forged documents which can cause legal issues later
  • Compare interest rates thoroughly and apply with lender offering the best deal

Exercising necessary precautions goes a long way in ensuring loan application process is smooth and quick.

What After Marksheet Loan Rejection?

Despite best efforts, some students face unfortunate rejection of their marksheet loan application due to various reasons like poor credentials, low income etc. Below are some options in such scenarios:

  • Reapply by improving eligibility – enhance academics, get a co-applicant with higher income
  • Alternative Funding – Arrange finances from family/relatives/friends circle
  • Crowdfunding – Create campaign on online platforms requesting donations
  • Scholarships – Apply for merit-based or means-based scholarship programs
  • Part-time Job – Take up jobs to self-fund smaller portion of expenses
  • Take a drop year to reapply for colleges and loan application next year

Pursuing above options can help realize academic goals despite marksheet loan rejection.

FAQs on How to Get Loan on Marksheet

Q. What is the minimum age to apply for marksheet loan?

The minimum age is 18 years for applying for marksheet loans.

Q. Can unemployed individuals get a marksheet loan?

Unemployed individuals need to have a co-applicant with stable income source to get approved for marksheet loans.

Q. Is credit score important for approval?

Credit score is not mandatory but good score helps in faster approval of marksheet loan application.

Q. Can loan be foreclosed before end of tenure?

Yes, marksheet loans allow foreclosure through part pre-payments or full prepayment anytime without penalty charges.

Q. Where is the best place to apply for these loans?

Banks, NBFCs and dedicated education loan providers have online application facility making applying easier directly from home.

Conclusion

Marksheet loans empower meritorious students to pursue higher academic and professional qualifications which may be unaffordable otherwise.

By following the step-by-step processes highlighted for how to get loan on marksheet, students can secure funding smoothly and continue focussing on excelling in careers ahead.

Responsible repayments in future will enable extending such loans sustainably to the next generation of students too.