The right customer
- Students with confirmed admission to recognised courses
- Families with a co-applicant who has steady income
- Students going abroad with collateral available for larger amounts
What lenders look for
- Public sector banks are strong for courses at recognised Indian institutions.
- Private banks and NBFCs move faster for study abroad, often without collateral for top universities.
Documents to collect
- Admission letter and fee structure
- Academic records
- KYC for student and co-applicant
- Co-applicant income proof
- Collateral papers, if any
Common rejection reasons
- Course or institution not on the lender's list
- Co-applicant income too low
- Missing admission documents
- Collateral papers incomplete
- Application too close to the fee deadline
A worked example
Illustrative case
Student: admitted to a two-year master's abroad, cost ₹40 lakh, parent co-applicant earning ₹1.5 lakh a month.
Illustrative payout at 0.75 % of ₹40 lakh: ₹30,000.