An education loan is an amount you get from the banks to pay your education expenses or expenses related to higher education. These are provided to pay the costs of tuition, books, supplies, and even accommodation expenses while a student is pursuing the particular course.
- India’s Top banks offer education loans to help students achieve their academic objectives.
- Both in India and out-of-India higher education can benefit from education loans.
- You can acquire a loan for full-time or part-time courses, as well as loans for working professionals, for higher education.
Table of Contents
Features of Education Loans
- Loans available upto Rs.1 crore.
- The loan can be repaid over up to 15 years.
- Get education loans for both Indian and international studies.
- Collects essential paperwork at your doorstep.
- Several banks offer favorable rates to children of bank employees.
- Female students can take merit of lower interest rates offered by some banks.
- After finishing the course, you may get one year grace preiod. You are not required to make loan repayments during this period.
- You can get tax benefits on interest paid for up to 8 years.
Eligibility Criteria
1] Nationality
- Citizens of India
- Non-Indian Residents (NRIs)
- India’s Overseas Citizens
- People of Indian ancestry
- International students with Indian parents who want to study in India
2] Courses
- Programs for undergraduates
- Postgraduate studies
- PhDs and doctoral programs
- Certificate programs lasting six months or longer are available.
- Courses that help you get a job
- Courses in technical/diploma/professional fields
3] Institutes
- Government colleges and recognized institutions
- Professional institutions that are aided by the government
- Universities and colleges from across the world
List of Expenses Education Loan Covers
- Fees for tuition
- Fees for the hostel
- Expenses for travel stipends for students studying in another country
- Premiums for insurance
- Expenses for books, equipment, instruments, and uniforms
- Fees for examinations, laboratories, and libraries
- The cost of a computer or laptop that is required to complete the course.
- Caution deposit, construction fund/refundable deposit backed up by bills/receipts from the institution
- Any extra costs associated with completing the course, such as study visits, thesis writing, or project work.
List of Documents Required
- Letter of acceptance from the educational institution
- Marksheets (prior school/college education)
- Proof of Age
- Proof of identification
- Proof of address
- Proof of signature
- stubs of pay
- Statements from recent bank accounts
- With income computation, ITR
- A balance sheet that has been audited
- Bank statements
- Service tax return/sales receipt as proof of turnover
- Complete Application form
- Passport-size photos taken recently
- Visas that are appropriate for studying abroad
How to Apply for an education loan?
- Apply Online – This is the easiest and most quick method. You got 2 options here these are:
- Go on a particular Bank website, read about the policy, apply for the loan on their website, attached the documents required, submit your application and wait for the approval.
- Register yourself on their website, fill required information, submit the form and request to contact you, they will contact you about policy terms and conditions.
- Apply Offline
- Visit a Branch: You can apply for a loan by taking documents required to your closest branch, discuss the loan terms with the staff, fill in the application, and submitting it in person.
- Call the Lender: You have a choice to call the lender or you can express your interest in receiving a callback. You can discuss loan terms and condition over call.
Many apps provide instant loans which also gives education loan facilities to know more about these apps “ click here “.
Top Education Loan Offering Banks
| Bank Name | Interest rates | Loan Amount | Maximum Tenure |
|---|---|---|---|
| Panjab National Bank | 8.75%-9.50% | Based on your requirement | up to 15 years |
| Bank of Baroda | 7.85%-9.85% | Up to Rs. 125 Lakhs | up to 10-15 years |
| HDFC Bank | 9.55%-13.25% | up to Rs. 30 Lakhs | up to 15 years |
| State Bank of India | 8.65% | Based on your requirement | up to 15 years |
| Axis Bank | 13.70%-15.20% | Based on your requirement | up to 15 years |
FAQs
1). Is it possible to obtain an education loan without pledging any assets as security?
Almost all bank and other lender education loans need collateral, which might include fixed deposits, property, shares, bonds, and so on. You can still get a student loan without any collateral. The Credit Guarantee Fund for Education Loan (CGFEL) Schemes gives collateral-free loans of up to Rs.7.5 lakh.
2). Do education loans cover the entire cost of education?
Yes, education loans cover the entire cost of a student’s education. Full coverage, but, maybe limited to expenses up to a particular amount. If the expenses exceed the limit, lenders have a margin.
3). What is the Tax benefit of education loans?
The interest you pay on your student loan can be deducted under Section 80E of the Income Tax Act of 1961. This advantage is only available to individual borrowers and is only offered for higher education. The deduction is available to all fields of study, both domestically and internationally.
4). What is a virtual assistant?
To better serve their consumers, banks and other financial organizations are turning to digital ways. Using a Virtual Assistant to clear your doubts and request assistance with the application process is one such way.
5). What factors do lenders evaluate when approving a loan?
- The course and institute you select are important considerations.
- The amount you’ll require
- Your academic achievements
- Your family’s repayment capacity
- Assets belonging to the family
- Annual earnings
