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Marksheet Loan
A mark sheet loan is an education loan or student loan. Nowadays, public sector lenders and many private sector lenders are offering Marksheet loans for meritorious students who lack the finance to study in top colleges. Let us now read on to find out more about marksheet loans, how to apply, eligibility, documents required, and interest rates.About Marksheet Loan
- What is a Marksheet Loan
- Marksheet Loans Interest Rates 2023
- Common Eligibility Criteria for Marksheet Loan
- Documents required for Marksheet Loans
- Self Employed Professionals
- Self Employed Individuals
- Self Employed Firms in the Manufacturing or Trading Business or Services
- What Are The Interest Rates
- What Are The Courses Covered Under Marksheet Loan
- What Are The Expenses Covered by Marksheet Loan
- How to Apply for A Marksheet Loan
- FAQs of Marksheet Loan
What is a Marksheet Loan
A mark sheet loan provides funds to students who want to pursue their post-secondary education from accredited colleges and universities but do not have the required finance for it. A marksheet loan varies from regular loans because repayment is deferred for the entire loan duration. The borrower does not have to pay any EMIs till he completes the course or the degree.
Marksheet Loans Interest Rates 2023
State Bank of India | 6.85% p.a. to 8.65% p.a. |
UCO Bank | 7.30% p.a to 9.70% p.a. |
Canara Bank | 8.75% p.a. to 9.25% p.a. |
HDFC Bank | 9.55% p.a. to 13.25% p.a. |
Bank of Baroda | 7.60% p.a. to 9.70% p.a. |
Punjab National Bank | 6.90% p.a. to 9.55% p.a. |
Axis Bank | 13.70% p.a. to 15.20% p.a. |
Common Eligibility Criteria for Marksheet Loan
- The Least Age of The Applicant: 18 years
- The Maximum Age of The Applicant: 65 years
- Employment: At least 3 months in employment and minimum 6 months in the current company
- Minimum Net Monthly Income: Rs. 3000 per month in cities like Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Calcutta, and Ahmedabad.
Documents required for Marksheet Loans
- Identity Proof: Passport Copy/Voters ID/ Driving license
- Address Proof: Ration card/Telephone or electricity bill/Rental Agreement/Passport copy/Trade License/Est./Sales Tax certificate
- Bank Statements: Bank statement of the 3 most recent months /6 months bank passbook
- Latest salary slip or current dated salary certificate with most recent Form 16
The list given above is a general list. More specific lists are given for self-employed professionals, individuals, and private companies or partnership firms.
Self-Employed Professionals
Eligibility Criteria
Minimum Age of Applicant | 18 years |
Maximum Age of Applicant at loan maturity | 65 years |
Business vintage | 3 to 6 months depending on profession |
Minimum Annual Income | Rs. 1,00,000 p.a. |
Documents Required
- Identity Proof - Voters ID card, Driving License, or a copy of your passport
- Address Proof - Ration card/Rental agreement/passport copy/Trade License/Est./Sales tax certificate/Telephone or electrical bill
- Bank Statements: The bank statements/passbook for the latest 6 months
- Latest ITR along with income computation: B/S and P&L account for the past 2 yrs with CA certification
- Qualification proof of the highest professional degree
Self Employed Individuals
This category includes sole proprietors, partners and directors, directors in the business of manufacturing, trading or services.
Eligibility Criteria For Self-Employed Individuals
Minimum Age of Applicant | 18 years |
Maximum Age of Applicant at loan maturity | 65 years |
Business vintage | 3 months continuous business experience |
Minimum Annual Income | Rs.1,00,000 p.a. |
Available in select cities | Available in select cities |
Documents Required For Self Employed Individuals
- Address Proof: Ration card, Telephone bill/Rental agreement/Electricity bill/Passport copy/Trade License/Est./Sales Tax Certificate
- Bank Statements: Bank statement/passbook of the latest 6 months
- Latest ITR along with income computation, B/S & P&L A/C for the last 2 years with CA certification
- Proof of Continuation in Business: Trade license /Establishment /Sales Tax certificate
- Other Necessary Documents: Sole proprietorship declaration or certified copy of partnership deed. Certified copy of MOA, Board resolution, and AOA.
Self Employed Firms in the Manufacturing or Trading Business or Services
This category includes partnership firms and private companies in the manufacturing or Trading business or services
Eligibility Criteria For Self-employed Firms
Years in Business | Minimum 3 months in current business and 6 months of total business experience |
Financial Status | Business must be making profits for the last 6 months |
Minimum Annual Income | Rs 1,00,000 per annum |
Available in select cities | Available in select cities |
Documents Required for Self-employed Firms
Address Proof: Ration card/Telephone or electricity bill/Rental agreement/Passport copy/Trade License/Establishment/Sales Tax Certificate
- Bank Statements: Bank statements of the latest 6 months/Passbook
- Latest ITR along with computation of income, B/S and P&L A/C for the last 2 years. Certified by CA
- Proof of business continuation: Trade license /Establishment /Sales Tax certificate
- Other Mandatory Documents: Sole proprietorship declaration or certified copy of partnership deed. Certified true copy of Memorandum and Articles of Association (Certified by the Director) and Board resolution (Original).
What Are The Interest Rates
Different banks have their own interest rates on the loan amount. The interest rate is computed as the sum of the base rate and the markup. The base rate is usually around 8% to 10%. So, the interest rate depends on the bank. Markup loan interest rates range between 6.85% and 15.20%. The interest rates are also based on the loan amount and the college or university.
What Are The Courses Covered Under Marksheet Loan
Courses covered under the Marksheet loan are
- Graduation, post-graduation, degree or diploma courses from reputed colleges or universities approved by AICTE/UGC/IMC/Government etc.
- Regular degree and diploma courses from top-ranked autonomous educational institutes such as IIM, IIT, etc.
- A wide range of educational disciplines including medicine, management, engineering, hotels and hospitality, pure science, computer science, agriculture, hotels and hospitality, fine arts, design, etc.
- Technical and vocational training courses such as air-hostess, shipping, nursing, teacher training, aviation, etc.
What Are The Expenses Covered by Marksheet Loan
The Marksheet loan covers the following expenses
- Living expenses, if any
- 100% of the tuition fees
- Examination fees
- Books and equipment
- Library fees
- Expenditure related to travel for studying abroad if any
- Cost of two-wheeler
- Other additional expenses required to ensure course completion
How to Apply for A Marksheet Loan
Applying for a marksheet loan is easy. Most lenders also have online applications. Here is a step-by-step process to apply for the loan.
- Estimate the cost of the course accurately: Before applying for the loan, you should estimate the cost of the course accurately. You should take into account all the costs including library fees, accommodation expenses, tuition fees, and other additional minor expenses.
- Apply for the loan: Visit the lender and discuss with him/her before filling out the application form so that you fill it correctly. You can also fill out the application form online. When you fill out an online application form, it will prompt you to enter any missed out fields. You should make sure that the documents are in place before you apply.
- Wait for a loan approval: The lending institution will evaluate your loan application and determine whether to accept or reject your application. The lender will also decide on whether to sanction the requested loan amount. You may be asked to provide some additional documents or explanations while assessing the loan application.
- Loan disbursal: The lenders directly disburse the loan amount to the financial institution or the college and not to your account. Before disbursal, you will have to place a disbursal request supported by a letter from your college with the lending institution.
FAQs of Marksheet Loan
1. Is a guarantor necessary for a mark sheet loan?
Yes, a guarantor is mandatory for a mark sheet loan. Your parents/spouse/guardian can take a personal guarantee and sign the guarantor’s form.
2. Is there any penalty levied for the late payment of marksheet loan EMIs?
Yes, there is a penalty levied in case of late payment. Depending on the lender, the penalty that is levied varies.
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