When it comes to planning a secured future, support in terms of financial aid sure goes a long way. Youth nowadays are not afraid to set out to make a career and be independent. They believe in planning well in advance and managing their finances right, and allocating necessary funds as required. To help them take a step forward – a personal loan will act as a support system.
- Education loans are the type of personal loans usually availed by individuals aiming to pursue higher education abroad.
- The process of an education loan is, however, tangled with several steps.
- The journey begins when you research the eligibility for the desired personal loan.
- Since it involves a larger amount of funds – the guide containing the terms and conditions seems to be book-like.
- It makes the entire reading experience quite lengthy. It is quite difficult to dig out key highlights from this bundle of information.
- We need to have a fair idea of our current standing and understand the personal loan interest rates.
- It is crucial to know that the personal loan interest rate should fall under our affordability limit.
- Generally, the personal loan interest rates are kept at a reasonable limit for personal loans such as an education loan.
- You can also utilize the online personal loan EMI calculator for free and have an idea about the monthly checks you will have to shell out. This is very quick and easy to use.
- Personal loan EMI calculator delivers results within seconds. It allows you to compare various plans and select the one which fits your pocket.
- After brainstorming about the necessary information, you can finally land upon the application page and now wait for the most awaited letter.
Let’s find out what this letter is.
Introducing: Sanction Letter
- The personal loan application requires the applicant to provide a certain set of documents to validate.
- These documents are required to verify whether the lender is directing the funds in the right direction or not.
- A final call is taken after due verification of the documents whether the applicant is qualified for the personal loan or not.
- Only when the lender approves the application, the borrower is intimated, and a message is delivered that the applied personal loan has been approved.
- This is intimated in the form of a letter, and this letter is called the sanction letter.
- The sanction letter carries all the necessary details such as the sanctioned personal loan amount, tenure of the loan, personal loan interest rate, details of the parties etc.
- Soon after the letter is delivered, the personal loan amount is credited to the borrower’s account.
In some cases, foreign universities seek proof of financial stability prior to confirming admissions to international students. It is one of the most important factors determining their financial standing. However, generally the lenders, i.e., the financial institutions supporting students via personal loans, only require the university proof of admission and student visa to grant a personal loan sanction letter. These cases allow you to apply for a pre-approved loan sanction letter.
Pre-approved Sanction Letter:
- Once the admissions committee grants admission to the incoming candidates, the international students can easily apply for the personal loan; post this, the sanction letter is issued.
- Certain financial institutions have a clause of disbursing the loan amount to students only post them receiving their study permit and visa.
- A provisional sanction letter is known as a pre-approved sanction letter to the common man.
- It is granted before a student secures admission into the university.
- This pre-approved sanction letter helps as proof of financial standing to bear the cost of the programme.
- This facility comes in handy even while applying for visas but is available only with select lenders.
General Documents Required for the Sanction Letter
The below is the list of documents that are required by most of the lenders:
- Personal loan application form – duly filled
- Academic qualifications record.
- Government ID proofs such as PAN Card, AADHAR card, etc.
- Proof of residential address.
- Proof of university admission
- Estimated statement of educational expenses such as the total tuition fee, accommodation fee, cost of study material.
- Income proof, if applicable – of the loan applicant or co-applicant.
- Bank statement of the loan applicant or the co-applicant.
- Collateral documents, if any as applicable.
For more information related to the subject, head over to the lender’s website and book a session with their experts. They will guide you to filter out the best suitable plans for you.