How To Apply For Education Loan for India and Abroad Studies
In this fast pace world where the prices are soaring up with speed of a rocket, it is important to pursue higher education in order to achieve your dreams. However, due to high cost of nowadays education both in India and abroad, many meritorious students have been discouraged from getting the education they deserved. The solution is an Education Loan which can cover some or complete education expenses of any candidates based on the type and bank. Education Loans are easy to obtain for deserving and meritorious students with easy repayment options. Here is a detailed elaboration on How to Apply for Education Loan and other aspects that will keep you satiated.
Benefits and Advantages of Education Loans:
Education is the most precious commodity and help fulfill dreams when you are equally qualified. Education Loans have many benefits listed below –
- Education Loans covers all types of certification and study both in India and abroad.
- The amount of education loan if studying is India ranges between 10 Lakhs to 15 Lakhs subjected to eligibility whereas it is about 20 Lakhs for study abroad.
- Anyone who wants to pursue basic or higher education across any discipline can apply for education loan.
- Female students usually receives education loans on lower Interest, EMI, or discounts on repayments which is a boon.
- The repayment scheme for Education Loan is different from personal loan. Here, the applicants get grace period of a year after securing degree or 6 months after securing a job.
- Small education loans, usually below 4 Lakhs do not require any guarantor or security.
- The eligibility for education loan and the amount to be disbursed depends on the course taken and the total family income which greatly influences the amount.
How to Check Eligibility for Education Loan:
The one who needs Education Loan can check for their eligibility online as there are many Eligibility Calculators available on the Internet that help you determine the amount which you can borrow from banks. Open any of the Eligibility Calculator and enter the details asked. Your Monthly Income, Family Income, Monthly Obligations, the Interest Rate, and the tenure of repayment and click on Calculate to know your Eligibility.
How to Apply for Education Loans:
- Before taking Education Loan from any Bank, the candidates are required to check for their eligibility as per which the amount is determined which can be loaned.
- The candidates can go to the official websites of the Bank listed below or visit the Branch for more information.
- The applicants are required to check their eligibility and then click on “Apply” when doing it online.
- Here, the applicants will be prompted to enter certain details and then click on Submit/Apply button after which a representative from concerned bank will visit your home for further procedures.
- The applicants must carry original as well as photocopies of the documents listed below subject to verification.
- After successful application, the applicants can check their status on the official website of concerned bank to know when will the amount disbursed in their account.
- The representatives will also let the applicants know the repayment options available and other important details to follow thereafter.
Documents Required for Application:
- Passport sized photo of guarantors, co-obligors, and applicants.
- Address and Age proof.
- Statements or Details of Bank Accounts of Guarantors, co-obligors, and applicants.
- Income Proof or Latest IT return of parents or guarantors.
- Photocopies of Degree Certificates/Mark sheets of previous academic qualifications
- In case the studies are to be pursued abroad, then Photocopy of Passport or Visa and Cost of Air fare.
- Details of Collateral Security along with valuation certificate of Government approved value.
List of Interest for Education Loan across major Banks in India –
|Bank||01 Year to < 02 Year||02 Year to < 03 Year||03 Year to < 05 Years||> 05 Years|
|Bank of Maharashtra||8.30%||8.60%||8.60%||8.30%|
|Bank of India||9.25%||8.25%||8.25%||7.00%|
|Bank of Baroda||9.35%||9.00%||8.50%||8.50%|
|Central Bank of India||9.25%||8.75%||8.80%||8.80%|
|Indian Overseas Bank||9.25%||8.75%||9.00%||9.00%|
|Indus Ind Bank||9.00%||8.75%||9.50%||8.75%|
|Karur Vysya Bank||10.25%||9.75%||9.00%||9.00%|
|Punjab and Sind Bank||9.55%||9.60%||9.05%||8.75%|
|State Bank of India||8.75%||9.25%||8.25%||8.50%|
|South Indian Bank||9.75%||8.75%||8.75%||8.25%|
Nowadays, almost all major banks allow application for education loan through their website which has greatly eliminated the need to visit each bank to know their Interest rates and repayment options. Now you can directly check or compare the interest rates and apply online hassle-free. Most of your work is done at a figure tip or just a call with active customer support provided by Banks or other financial institutions.
All the Best!!