II. Education loan by SBI

Credila is popular among the students, but due to its high interest rate and processing fees, I did some research on the nationalazied banks - SBI. I have heard from many folks that the loan process in nationalazied banks is tediuos and lengthy so thought to give some shot.

For the documents required for loan approval by Credila refer my earlier post - I.  Here, in this post would share the list of documents needed by the SBI.

<Documents required for Student Loan>

Application duly filled up (With Photograph)

Student:

1. Mark Sheets of HSC, SSC and other examinations passed by students
2. Bio-data form along with proof
3. Identity proof of student
- Copy of passport(both front and back side xerox )
- Pan card
- Adhar Card
4. Proof of admission in the course (admit letter)
5. Schedule of expenses for the course issued by the colleges (could be i20)
6. Prospectus/documents evidencing course commencement and duration (i20)
7. Reason of Gap (Gap certificate..consult advocate)
8. Proof of margin (bank statement)
9. Releiving letter from your office (if you are working) If you havent resigned yet u could submit an application

Guardian (Can add the names of both of parents)

1. Identity proof
- Aadhar card/ Pan card
2. Residence proof
- Aadhar card/Pan card
3. Recent Salary Slip
4. Employement details for last 5 years
5. Statement of Bank account where salary is credited for last 6 months
6. Form No. 16 for last 2 years/ IT return for last 2 years. OR Profit and Loss Account and Balance sheets along with computation of Income.
7. Bio-data form along with all supporting documents
8. Statement of all loan accounts if availed

Property Papers

1. Flat purchase agreement
2. Index - II and its Registration Receipt
3. If flat is still under construction then:
    i)    NA Order
    ii)   ULC Order
    iii)  NOC from the builder on Bank's Standard format
    iv)  Builder's search report
4. Approved plan
5. Commencement Certificate
6. Completion Certificate
7. Development Agreement / Conveyance deed (If society is formed)
8. Society registration certificate
9. Share certificate
10. NOC from the society on Bank's standard format

All the documents should be xerox copy with self attestation
</Documents>

For verification,
- Bring original copy of KYC documents(Aadhar/Pan card/ Passport)
- Bring Original marksheets
- Xerox should be self attested
- 2 photos of both applicant and sponsor
- cheque book (need to give cheque of 4000., which is then given to advocate,...who prepares some papers regarding property)


Tip:
- Create three files for applicant info, sponsor info and other for property papers
- Open the SBI account if not opened. It can be joined of applicant and sponsor.

Total Costing:

1. Valuator fees: 860 Rs
2. Advocate fees: 4000 Rs (This is again for some valuation document)
3. Processing fees: 10000Rs
4. SBI Life Premium (Calculated based upon tenure and loan granted amount)

Few days will be spent for valuation and for preparing adavocte reports. I had given the cheque Rs.860 to valuator and Rs.4000 to bank.

SBI gave me the contact no of both valuator and advocate. I had to personally go to the advocte and submit all of property xerox papers( all the documents in the list3) in his office.
Advocate are the lazy guys they took almost a week to prepare some report which they later submitted directly to the bank.

Main processing office for education loan is situated somewhere in swargate(PUNE). So after all the document list is complete, bank submits our file to the loan processing office. Once the file is reached, some person from the bank will visit the property after 3-4 days and ask few general questions. They would also open the loan account of your name in SBI within 15 days. Once they officially start processing the loan the sponsor receives the SMS about the same.
SBI guys would do visit the work place of your sponsor, call the employer, call your sponsor to confirm again few details if they have doubt.

Finally after 3-4 months I had visited the swargate office for my bank loan, to know till where the process has reached. After visting 2-3 times, finally sbi folks gave me the sancetion letter with 8.85% interest rate which I used as financial proof in my VISA interview.

After week or two I received both the call and mail from the SBI to submit the original property papers and sign the documents. Our appointment was scheduled at 2.30, but the whole process got completed at around 4.30-5.00. So many forms to fill and sign took much of our time.

List of documents to be carried to the SBI office @time of signing the final legal papers:



*** Would continue the post with disbursement process and documents.

I. After admit..what next?

Hello,

In many colleges like UB the basic requirement is to showcase the financial documents for checking our financial capability before provisioning the i20.

So, what Next? WE try reading Quora, asking past students or just searching google about financial proofs.

With my initial research, though I got negative reviews about credila I still thought to give a try for credila loans. Actually I was tempted because it gave loans up to 35 lakh without collateral.

In mid of November, I filled out an online enquiry form of credila and in few minutes I got calls from 2-3 credila agents. He enquired about few details and sent me the mail regarding the list of necessary documents and asked me the convenient time to meet. I was so happy that I would be saved from going to credila office instead they were coming home at my desired time. I was feeling privileged!

The list of documents that were mentioned in the mail thread were:

<document>

Applicant: Student documents

         

1) ID proof: Passport, Pan card

2) 10,12  & Graduation all mark-sheet with certificate(Gre,Toefl score card)

3) Admission Proof –College Offer Letter (Not mandatory)

You could submit GRE/TOEFL instead

4) if having work experience-offer letter,3 months salary slips,6 month bank statement,form-16

                     

Co Borrower: If Salaried (Father or Mother or Brother or Sister or Relatives)

1) ID Proof – Adhar-card/voter-id/passport copy

2) Address Proof-Electricity bill

3) Sign Proof-pan card

4) 3 month salary slip (latest)

5) 2 year Form 16

6) 8 month bank statement(with IFSC,MICR code)

7) 1 photo

Guarantor: As a applicant mother

1) ID Proof- Adhara-card/voter-id/passport copy

2) Address Proof- Electricity bill

3) 1 photo

</document>

Smoothly I submitted all the documents and he told that the loan decision would be made in 1-2 weeks.

I was eagerly waiting for anytime of the communication from credila. In between Co borrower and guarantor received verification calls.

They asked few basic questions to my sponsor and identification question to other contact persons. At last on one of the Sunday after two weeks I got the mail that my loan of 30lakh was approved. I waited for any contact from the HDFC for further procedure. But to my dismay I didn't got any call. So after weeks of waiting, I contacted them..

The same soft and polite tone of the HDFC agent was changed to a rude one. He replied that I need to visit HDFC credila office in deccan (Pune). I enquired about all the documents that were needed for verification he told me one of the guy's name whom I need to contact for the remaining process.

Few weeks later, on Saturday I visited deccan office of credila, I could see huge rush of students in their office every officials were so busy looked like the scene in some government banks. We waited for our turn, finally after a half hour some guy attended but looked like he was in hurry. After telling about confirmation of loan, first question he asked about did you brought 10000? We were like what the hell! Then he started explaining that processing fees are 1% of the loan amount you take. But for loan sanction letter you would need to pay least amount 10000. When I inquired about the interest he was like first you pay 10k then we would discuss. Still I asked him the amount that time he told that it would be around 11-12. He was not willing to share the exact interest rate. Though I was feeling that I should give 10k and happily take loan sanction home, my father suggested to at least enquire at other banks.

In deccan itself there is one SBI office which only deals with the home and education loans. I had enquired earlier in our nearby SBI branches where I came to know that only one office is there in PUNE which deals with educational loans for masters.

The office was small but cozy, having two cubicles specifically to handle educational loan enquiries. In SBI you could imagine the rush, but I was amazed to see their speed of handling the work. By the time the education loan in charge was attending other customers, the lady at the SBI counter provided me with the document list which I would need while taking education loan. My turn came in fifteen minutes the woman in charge patiently explained me all the necessary documents and also suggested few alternatives for the documents which i didn't had. In writing she gave the processing fees and its distribution with interest rate, SBI policy which is mandatory, etc. Within an hour of enquiry she cleared all our doubts and concerns. Never did I imagined a bank like SBI would be so clear and detailed about their process and there interest rate. For SBI, the interest rate was 9.50 with 80% of i20 sanctioned as loan.

I told her regarding my concern about showing financial documents for issuing i20 to which she agreed that it might not be possible to approve your loan before i20 because they need the exact details about tuition fees and living fees. So she suggested me to have a solvency certificate (after confirming through the seniors). Though it was not a part of her job she volunteered to give me the SBI valuator number and documents I would need for the same. I was so overwhelmed with help provided by the government folks.

Government ROCKs!

On our way back to home we decided to take the loan of SBI. But not sure about the financial documents required for verification in i20.

Now I had two options:

1.To pay 10k and get loan sanction letter 

2.To check for solvency letter.

 I decided to go for 2nd option. Because anyways I had HDFC loan sanctioned and would take just one day for official letter.

HDFC credila vs SBI (nationalized banks) educational loans

HDFC:

1. Max loan granted without collateral is 35 lakhs

2. With collateral can extend to any amount

3. Interest rates:

Collateral: around 11% Without collateral: around 12 % 

4. Processing fees: 1% loan sanctioned (for 30lakhs - 30k)

Who should prefer HDFC credila?

- Who don't want property to mortgage

- Who are able to pay the loan in short time and wouldn't be affected by higher interest rate

SBI:

1. Max loan granted without collateral is 7.5 lakhs

2. With collateral: 80% of i20 amount

3. Interest rates:

With collateral: its 10,5 %

But with some scheme discount of 0.5% so interest becomes-

10%(men)  9.5%(women)

4. Processing fees: 10000

5. Other fees 840(valuation) + 400 (advocate)

6. SBI Life insurance

Who should prefer SBI?

- Who have their personal savings and need loan of lesser amount

- SBI just sanctions 80% of i20, so one must have 20% of the remaining amount

Documents submitted as a part of financial poof:

Note: These documents are the alternative to the loan sanction letter

1. Bank conformance letter:

This letter you will get from the bank where you have your savings. It will show the bank balance in US dollars.

Prerequisite:

-Identity proof

-Request letter (account no)

Features:

Time-One day to process

Cost-Free of cost

Who should prefer Bank conformance letter?

- Those who have saving account

- Fix deposits

- Alternative to salary slip

- This is valid for both the applicant and the sponsor 

- If you have enough liquid assests then this statement itself would suffice or one would need the bank sanction letter or the solvency certificate issued from the BANK. And not from the CA.

OR/AND

2. Solvency certificate:

This is the bank letter which shows the financial capability of any person which is accepted by most of the universities and is also suggested as a part of document in VISA interview. It is kind of valuation of immobile as well as liquid assets. The solvency certificate on the request would also be issued in the dollars as well.

The prerequisites vary from bank to bank. 

For HDFC you need lots of documents: CA/valuation/college acceptance letter/index2

For SBI: valuation letter only

Which bank to take the solvency from?

If the property is named under your parents name check with the bank where your parents have their account.

Also before the solvency certificate you would need the valuation report from the valuator

Cost:

Valuation report-865Rs

CA certificate (for HDFC): 500Rs

Solvency certificate from SBI (for 2 copies) - 1300 approx

Advantages:

- We have the choice to take the loan from any bank after we get i20

- Its recommended to have in VISA interview so why not to have it now

Who should prefer solvency?

- Who are still not clear about the amount of loan might be because they have not yet finalized upon the colleges

- Who have the assets - gold/ property/ fixed deposits which could reflect their capability or in simple term total valuation on the assets

- To obtain the solvency there is absolutely no need to mortgage the property

My Tip:

Apply to credila first, get the loan sanctioned (unofficial one). Its free of cost!

Try searching for the other better options. At the end of day, if you are not satisfied with other options you always have the backup plan to pay the processing fees and get the  official sanction letter from credila. Official sanction letter would be given in one day itself so no time glitch. 

In next post would cover about the SBI loan procedure.

Thanks,

NK