Education and Career Forum

Hello,
I am planning to apply for an Educational Loan to study MBA in India. I have already taken a Personal Loan on my name, which I have been paying regularly. I have a concern over this, whether this will be a problem when I apply for an Educational Loan? Since in the application form there a section named "Borrowings". Will that be a problem to get an Educational Loan? Is it really necessary to mention my Personal Loan details in that Section? I also have Credit Cards and I am maintaining them without any late fee or fine.

Originally Posted by Unregistered

Hello,
I am planning to apply for an Educational Loan to study MBA in India. I have already taken a Personal Loan on my name, which I have been paying regularly. I have a concern over this, whether this will be a problem when I apply for an Educational Loan? Since in the application form there a section named "Borrowings". Will that be a problem to get an Educational Loan? Is it really necessary to mention my Personal Loan details in that Section? I also have Credit Cards and I am maintaining them without any late fee or fine.

There should not be any problem if you have already taken a personal loan. I would suggest you to not to write anything about personal loan. But to be in a safe a side you can transfer the personal loan to any of your earning siblings so that while documentation of personal loan, against your name there should not be any outstanding loan. If the loan amount is less then bank will approve your loan application, but if the loan amount is more than chances of getting rejection is more.

There is no impact of clearing your credit card bills on time. Only the outstanding loan will be one which might hinder your loan approval process.

Few more information on loan documents, as you are applying for loan below are the check list you can arrange accordingly. Loan application, passport size photos, proof of address, proof of age, PAN card of student borrower, proof of last qualifying examination, letter of admission, prospectus and fee structure of the college, details of assets and liabilities of parents or co-obligates.