Education Loan: In our country, a huge percentage of people is still suffering to have some quality education despite having a lot of talent and brilliant minds. It’s just that they don’t possess the fortune. That’s why education loan is so important. It has helped a lot of poor as well as middle-class people of our country. Education is one of the most important things is one’s life and this is like a fundamental right that must be provided to them at any cost. It is the very beginning of someone’s success and it also helps our country in minimizing the effects of poverty.
| Interest rate | 6.75 % to 15.20 %, varies from bank to bank |
| Processing fee | 1 % of loan amount or 10,000 rupees + tax |
| Features | Interest rate of loans is very less. A long term loan is provided. Other features like part payment, health cover, etc. |
| Eligibility criteria | Must be an Indian to have an education loan. An academic record must be good. |
| Application process (Online/Offline) | The application process is both online and offline. Fill the application form and add the required documents. |
| Documents Required | Two passport-size photographs. I’d proof and address proof. Proof of admission into the institution for which you are taking the loan. |
Education loans had helped million from the time it was introduced for the first time. The best part about this loan is that it doesn’t ask for a very high-interest rate and once you become able, then you can repay the loan. It also provides a lot of different features like study insurance cover, part payment, and health cover, and many more. The tenure for the loan repayment is also very long and tax rebates and low interest also help a lot.
The loan amount is also very huge, which is 50 lakhs for domestic students to 1 crore for international students. Your travel expenses is also covered under the education loan. It also provides you a laptop for your studies.
| Interest Rate | 6.75% onwards |
| Minimum Tenure (excluding grace period) | 5 years |
| Moratorium Period (after course completion) | 1 years |
| Minimum Loan amount | ₹ 50,000 |
| Maximum Loan without collateral | ₹ Need Based |
| Maximum Tenure | 15 years |
There are certain criteria’s on which the education loan relies, so check these carefully:
- The student must be an Indian otherwise an education loan can’t be sanctioned.
- A proof for secured admission form the university or college should be with the student.
- Student must have the12th pass for an undergraduate or an graduated one for postgraduate.
- The courses must be defined for which you are selected. Your college or university must provide the details about your degree/diploma, courses offered by IIM, UG degree or PG degree from a recognized university, and others.
- You need to have more than 60% marks to be considered as a meritorious student and then only your loan will be sanctioned.
| Bank | Interest Rate (p.a.) | Loan Amount | Processing Fees |
| PNB | 7.30% onwards | Up to 15 Lakhs | 1% of the loan amount |
| SBI | 6.85% to 8.65% | Up to Rs.1.5 crore | Rs.10,000 + tax |
| Axis | 13.70% to 15.20% | Up to 7.5 Lakh | Nil to Rs.15,000 + tax |
| Bank of Baroda | 6.75% to 9.85% | Up to 4 Lakh and above | 1% of the loan amount up to Rs.10,000 |
| HDFC | 9.40% to 13.34% | Max Apr | Up to 1.5% of loan amount + tax |
| Tata Capital | 10.99% onwards | Up to 30 Lakh | Up to 2.75% of loan amount + tax |
| Union Bank of India | 6.80% to 10.05% | Need-based finance | Nil for Indian students 0.50% of loan amount + GST for NRI students |
| Bank of India | 9.05% to 9.85% | For courses in India: Up to Rs.10 lakh For courses abroad: Up to Rs.20 lakh | Nil for courses in India Rs.5,000 + other fees for study abroad |
| Kotak Mahindra Bank | Up to 16% | For courses in India: Up to Rs.10 lakh For courses abroad: Up to Rs.20 lakh | Contact the bank |
| ICICI Bank | 10.50% onwards | For courses in India: Up to Rs.50 lakh For courses abroad: Up to Rs.1 crore | Contact the bank |
| Federal Bank | 10.05% onwards | For courses in India: Up to Rs.10 lakh For courses abroad: Up to Rs.20 lakh | Contact the bank |
The application process for an education loan is very simple. You can avail the education loan without any trouble only if they possess the required documents and if you are eligible for it. You must have more than 60% marks and you should also carry your call letter or proof of admission from the university or college. You must not be a foreigner if you want to avail the benefits of an education loan. Though Non Residential Indians can now take education loan in India.
Now we will discuss the application process in steps:
- Step I – first of all, the process is both online and offline, so you don’t have to worry even a bit.
- Step II – either you can reach directly to the bank or to the lender or you can visit the official website to know the details
- Step III – after getting the application form, you need to fill it with utmost care. In case of online, you can easily download the application form and can fill it.
- Step IV – later, you have to add your mark sheet, your admission proof, and other relevant documents.
- Step V – you also have to give an interview with the officials. They will check whether you are eligible or not.
- Step VI – this step includes documentation and validation of all the details which you had provided in the earlier steps.
- Step VII – your loan will be approved in this step and in few days of time, the loan will be disbursed is well.
You need to have a lot of documents if you want an education loan. These documents will proof your background and your qualifications till now. We have discussed about all the documents you need, in points:
- You need to carry a two passport size photograph or scanned image of your photograph.
- You need to have a photo identity proof.
- A residence proof is also very compulsory.
- Your academic record over the course of time and your current status.
- College call letter or admission proof form the University.
- Income proof of your guardian, who is playing the role of co-applicant.
- Bank statement of the last 8 months is also needed of co-applicant.
- You need provide all the relevant details about collateral and immovable property.
| Name of Bank | Education Loan Interest Rates In India | Education Loan Interest Rates In Abroad |
|---|---|---|
| Avanse DHFL | 12.65% | 12.65% |
| Axis Bank | 13.70% | 13.70% |
| Bank of Baroda | 7.70% | 8.35% |
| Bank of India | 9.05% | 9.05% |
| Bank of Maharashtra | 8.55% | 8.55% |
| Canara Bank | 8.50% | 8.50% |
| Central Bank of India | 8.50% | 8.50% |
| Corporation Bank | 8.80% | 8.80% |
| Federal Bank | 10.05% | 10.05% |
| IDBI Bank | 6.90% | 8.40% |
| Indian Bank | 7.15% | 7.15% |
| Indian Overseas Bank | 10.65% | 10.65% |
| Karnataka Bank | 9.85% | 9.83% |
| Karur Vysya Bank | 10.75% | 10.75% |
| OBC | 7.05% | 10.65% |
| PNB | 7.05% | 10.65% |
| SBI | 7.00% | 8.80% |
| UCO Bank | 9.30% | 9.30% |
| Union Bank of India | 8.40% | 8.05% |
| United Bank of India | 10.65% | 10.65% |
What are the other benefits included in an education loan?
Education loan not only provide education, but it also covers other expenses, such as traveling fee, fooding and lodging, etc.
What’s the maximum amount which one can get?
The maximum loan amount for domestic studies is vary bank by banks, whereas for study in abroad, you can get a maximum Loan on Need Based.
What courses are eligible for education loans?
List of courses eligible for education loan are: 1. Graduation and Post-graduation courses. 2. Professional courses. 3. Diploma/degree courses by recognized institutions.
How to avail tax benefits on education loan?
You can avail tax benefits under section 80C and Section 80E of the Income-tax Act, 1961 for education loan’s interest and payment.
Categories: Loans
Source: bank.newstars.edu.vn
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