As we all know , now a days the education is coin very much costly. Some of our, will not be able to pay that much money for their for the studies. So, if you are not eligible to pay that much money on courses for your higher education, then you can take an education loan on the basis of your courses. It will help you to continue your studies. And will make you able to pay your fee after the completion of the courses by yourself. It is a opportunity for the students who are are passionate about their studies, but because of their family problems they cannot afford for studying in good colleges.
Now, we all know about the this loan. But , we don’t know the procedure for application of loan. The procedure and everything about an Education loan is mentioned below .
What is an Education loan ?
Education loan is a type of loan in which a student can get some sum of money for their secondary and higher Study related expenses. You can get its benefit in your tuition fee, supplies, books or any other expenses while you are in the process of pursuing a degree. There are a variety of education loans, they can be broken down generally into two basic types: federal loans sponsored by the federal government and private loans.
How can I get education loan from bank ?
To apply for any education loan, the candidate must be Indian citizen, have secured admission into a college or university whether it is in India/abroad. The applicant must be completed their higher level education. Some of the banks can offer the loan before securing any admission in college. There may be a age limit in some banks too.
Documents required by the bank for Education Loan
- Admission letter of the institution,
- Fee structure
- Class 10th and 12th marksheet
- Income documents and such as income tax return are also required by the banks .
The loan can be taken for full time or part time. You can do any courses under the this loan such that graduation and post graduation in Engineering, Architecture, Management, Medical, Hotel management etc .
The bank can finance up to 100% depending on the amount of the loan. If the amount of the loan is up to 4 lacs, there is no margin money needed. For India, 5% of money is financed by the applicant and for overseas, 15% of money is financed by the applicant.
Security For Loans
The bank can ask for security for loans above 7.5 lacs. Security is only needed for loan upto 7.5 lac otherwise there is no need of any security or third-party guarantee.
Education Loan Interest Rate In India
Interest rates of education loan means the percentage amount that will be charged from the applicant for borrowed principal amount.
The interest rate for domestic study loan is min 8.35% to max 15.8% and interest rate for studying in abroad is 9.7% – 16.2% . The duration for the education loan is 1-20 years . Maximum amount for domestic study loan is 20,000 – 45 lakhs and for foreign Study is 1.5 lakh – 1.5 crore .
There is list of Banks with their Education loan Interest rates.
|Name of bank||Education loan Interest rates in India||Education loan Interest rates in Abroa|
|Avanse DHFL Education Loan||11.50%||11.50%|
|Axis Bank Education loan||13.70%||13.70%|
|Bank of Baroda Education Loan||8.40%||9.15%|
|Bank of India||9.85%||9.85%|
|Bank of Maharashtra||10.25%||10.25%|
|Central Bank of India||10.10%||10.10%|
|Indian Overseas Bank||10.65%||10.65%|
|Karur Vysya Bank||11.35%||11.35%|
|Union Bank of India||10.20%||10.20%|
|United Bank of India||10.50%||10.50%|
The repayment of the loan is done by the student after the completion of their degree . Some bank’s provides a relaxation of 6 months . The period of repayment is generally of 5 to 7 years but it can be extended as for the loan . The student can easily repay the loan by EMI ( equated monthly income ) .
Education Loan Procedure
You can apply loan form both online and offline mode . By online, you have to just fill the form with the required information and can easily apply for the loan. By offline, you can fill the form by visiting their side or you can get a callback from the bank .
- Online application
- Go to the Education Loan Platform .
- Select the type of the Loan .
- Click on the ” Apply Now Online ” tab .
- Fill the form with all required details and submit it .
- Select the type of the loan and complete the necessities required for fast processing .
- Offline Application
- Get a callback
- Got to the Education Loan Platform .
- Select the type of loan you want to apply for .
- On the new page click on ‘Get a Callback’ tab.
- Fill out the form and submit
- Enter the OTP and click on confirm tab.
- Branch Visit
Alternatively students wishing to apply for an education loan can approach the nearest SBI Bank branch. To find a branch near you, go to the branch locator of SBI bank. There you can contact a bank official who will guide you through the process of applying for an loan.
Benefits Of Education Loan
The student loan will cover your academic expenses as well as your non academic expenses . The expenses are listed below that are covered under the student loan :
- Tuition Fees
- Capitation Fess
- Registration Fees
- Counselling Fees
- Examination Fees
- Study visits and educational tour fees
- Laboratory Fees
- Library Fees
- Hostel fees/transport fees
- Mess-Food expenses
- Building Fees
- Fixed/Student welfare contribution
- Refundable caution money
- Transport and commute expenses
- Equipment and project expenses
- Laptop, 2-wheeler, transport-pass, wheelchair expenses (necessary)
- Student insurance
- In-flight expenses, outward remittances (study abroad)