Educational Loan

Educational Loan

  • What is Educational Loan​?

Education loan is one of the fundamental rights of all children. However, it is so expensive that a lot of children including the meritorious ones cannot afford it.

Student Loans aim to provide financial assistance to the meritorious students so that they can finance their basic or higher education.

Most of the banks in India offer education loans and the demand of education loans is stable.

You generally do not need any sort of collateral security in order to avail this loan.

You should take the educational loan in India from the organization which offers the lowest rates of interest.

The education loan process is an easy one and does not involve any complicated procedures.

Make sure to go through the education loan details before applying for education loan subsidy.

You should also make sure that the loan period is short.

After the completion of the loan period the repayment tenure can be between 5 to 7 years.

You can also apply education loan online and check the various rates of interest.

You can get also get education loan for abroad studies.

Make sure you have the documents required for education loan ready before applying for one.

A lot of people question the advantage of educational loans over banks savings. The advantages of educational Loans are mentioned below:

  • It can be easily accessed:
  1. It is one of the priority products offered by education loan bank of India.
  2. Once the bank is confirmed that the you will be able to repay it back on time, it can be easily availed by you.
  • You get timely assistance for educational loan:
  1. A educational loans offers you timely assistance.
  • Education is very expensive:
  1. Education is very expensive now a days and therefore one should take educational loan to finance one’s education.
  2. A good education is very expensive and you cannot afford it if you do not have sufficient money.
  3. An education loan will allow you to not only pay fees of your child’s college or school but also takes cares of other aspects of his or her education.
  4. The education loan repayment starts after you get a job.
  • Specialized Help:

With educational loan the different facets of one’s course can be financed without the risk of running out of money.

  • The course pursued by the student and the annual family income are instrumental in determining the educational loan.
  • Anyone can get an educational loan for studying in India or abroad for undergraduate, postgraduate and Doctoral degrees.
  • The parents or guardian of the student need to be the co-signers of the loan in order to avail the loan.
  • Female students are given loans with lower rates of interests.
  • The loans below 4 lakhs do not require a guarantor.
  • Educational loan to a specific amount can be availed without any collateral.
  • Higher loans will require some type of property as a collateral.
  • The maximum loan limit for students studying in India is up to 15 lakhs and up to 20 lakhs for those who want to study in abroad.
  • Normally the loan repayment period is from 5 to 7 years.
  • It can be extended to 15 years in some cases.
  • The educational loan is not required to be serviced during the time of study for a person. The student starts repaying the loan after he or she gets regular employment.
  • Educational loan is subjected to tax benefits.
  • With the recent inflation in the 0 rice 9f everything one cannot be sure about financing the education of one’s children.
  • Therefore education loan can act as a book in such cases. A good education loan helps you to fulfill your child’s dreams.
  • The different aspects of the education of a student can be taken care of with the student loan.
  • One can easily get student loan for studying in abroad.

The education loan interest rates are as follows:

  • Axis Bank: 70% to 15.20%
  • HDFC Bank: 9% to 11.57%
  • Canara Bank: 90% to 10.40%
  • Bank of Baroda: 50% onwards
  • Kotak Mahindra Bank: 5% to 24%
  • Punjab National Bank:45% to 10.45%
  • Credila: 85 % onwards
  • Avance: 10% to 16.50%

Interest rate of SBI BANK:

SBI education loan can be availed without any processing fee for a repayment period of upto 15 years after the course.  The loan amount can be up to 20 lakhs.

  • For loans up to 7.5 lakhs: 25% p.a.
  • For loans above 7.5 lakhs: 50% p.a.
  • Girl students are given a concession of 0.50%
  • 1% for the full tenures of the loan if the interest is served promptly.
  • IT exemption under section 80 E is also provided.
  • The person should be a citizen of India.
  • In case the student is NRI, he or she should have a valid Indian passport.
  • Your age should be as mentioned by the bank.
  • You should have an admission offer from a recognized college or institution.
  • You should have a co-applicant while applying for the loan who should have a regular source of income.
  • The co borrower should have a good academic record and a good academic history.

The documents required for educational loan are as follows:

  • A duly filled application form of educational loan.
  • Letter of confirmation of admission from the college.
  • Copies of marksheets from class 10th to the last qualifying exam.
  • A letter of affidavit to confirm that no other loan has been taken in that respect.
  • Proof of identity and signature like passport, PAN card or driving license.
  • Proof of address like a bank statement.
  • Age proof like a Voter ID card.
  • Proof of income of the co-borrower if he or she is salaried.
  • Income proof of business men.
  • Qualification proof of highest qualification degree.
  • If you are admitted to a very good college then the approval of your student loan is easier as the bank can trust you in that way.
  • Keep all the papers and documents ready before applying for a loan.
  • The repayment of the loan should start after six months of availing the job.
  • The educational loan rate varies from bank to bank.
  • This loan can be availed by all students all across the country.
  • The methods of repayment are very flexible.
  • Different institutions have different sets of parameters for judging whether or not a person is capable for loan repayment.
  • Data of the institution where the student is going to pursue a course is scanned thoroughly.
  • The banks also see the chances of the student getting hired after the completion of his or her course.
  • The approximate salary of the student in the future determines whether or not he or she will be able to repay back the loan on time.
  • The credit scores and ratings of the students are also taken into account.
  • Financial earning of the Co applicant is also a major factor in determining the whether or not the loan should be sanctioned.
  • The traditional lenders carry out a detailed inspection of the college of the student.
  • Some financial organizations ask the students to pay the difference between the fees and the approved amount.
  • Lending institutions decide the interest rates.
  • Since the loan is applicable for educational purposes, the repayment starts immediately after the conclusion of the course.
  • The loan repayment period can be from 5 to 7 years.
  • Many banks may push you to take an insurance along with the loan. However, it is not mandatory.
  • What is the age restriction for subscribing to an education loan?

Generally, there is no age limit but some banks put age limit requirement as 16 to 35 years.

  • Do you get any tax benefits for education Loans?

The tax benefits cannot be availed immediately. However, after some time you can avail the tax benefits on the educational loan.

  • Who can act as a guarantor for educational loan?

The applicant’s parents, spouse, siblings or in laws can act as guarantor for the educational loan.

For loans up to 4 lakhs the banks do not ask for a guarantor.

  • Is an insurance required for educational loan?

It is not mandatory to take an insurance along with an educational loan.

  • Is it possible to get an educational loan without any collateral?

Yes, it is possible to get an educational loan without a collateral.

Moreover, nothing is charged from the students to get the loan sanctioned.

Instant Loan Approval

Quick Links

Cards

Investments

Educational Loan​

  • What is Educational Loan​ ?

Education Loan is one of the fundamental rights of all children. However, it is so expensive that a lot of children including the meritorious ones cannot afford it.

Student Loans aim to provide financial assistance to the meritorious students so that they can finance their basic or higher education.

Most of the banks in India offer education loans and the demand of education loans is stable.

You generally do not need any sort of collateral security in order to avail this loan.

You should take the educational loan in India from the organization which offers the lowest rates of interest.

The education loan process is an easy one and does not involve any complicated procedures.

Make sure to go through the education loan details before applying for education loan subsidy.

You should also make sure that the loan period is short.

After the completion of the loan period the repayment tenure can be between 5 to 7 years.

You can also apply education loan online and check the various rates of interest.

You can get also get education loan for abroad studies.

Make sure you have the documents required for education loan ready before applying for one.

A lot of people question the advantage of educational loans over banks savings. The advantages of educational Loans are mentioned below:

  • It can be easily accessed:
  1. It is one of the priority products offered by education loan bank of India.
  2. Once the bank is confirmed that the you will be able to repay it back on time, it can be easily availed by you.
  • You get timely assistance for educational loan:
  1. A educational loans offers you timely assistance.
  • Education is very expensive:
  1. Education is very expensive now a days and therefore one should take educational loan to finance one’s education.
  2. A good education is very expensive and you cannot afford it if you do not have sufficient money.
  3. An education loan will allow you to not only pay fees of your child’s college or school but also takes cares of other aspects of his or her education.
  4. The education loan repayment starts after you get a job.
  • Specialized Help:

With educational loan the different facets of one’s course can be financed without the risk of running out of money.

  • The course pursued by the student and the annual family income are instrumental in determining the educational loan.
  • Anyone can get an educational loan for studying in India or abroad for undergraduate, postgraduate and Doctoral degrees.
  • The parents or guardian of the student need to be the co-signers of the loan in order to avail the loan.
  • Female students are given loans with lower rates of interests.
  • The loans below 4 lakhs do not require a guarantor.
  • Educational loan to a specific amount can be availed without any collateral.
  • Higher loans will require some type of property as a collateral.
  • The maximum loan limit for students studying in India is up to 15 lakhs and up to 20 lakhs for those who want to study in abroad.
  • Normally the loan repayment period is from 5 to 7 years.
  • It can be extended to 15 years in some cases.
  • The educational loan is not required to be serviced during the time of study for a person. The student starts repaying the loan after he or she gets regular employment.
  • Educational loan is subjected to tax benefits.
  • With the recent inflation in the 0 rice 9f everything one cannot be sure about financing the education of one’s children.
  • Therefore education loan can act as a book in such cases. A good education loan helps you to fulfil your child’s dreams.
  • The different aspects of the education of a student can be taken care of with the student loan.
  • One can easily get student loan for studying in abroad

The education loan interest rates are as follows:

  • Axis Bank: 70% to 15.20%
  • HDFC Bank: 9% to 11.57%
  • Canara Bank: 90% to 10.40%
  • Bank of Baroda: 50% onwards
  • Kotak Mahindra Bank: 5% to 24%
  • Punjab National Bank:45% to 10.45%
  • Credila: 85 % onwards
  • Avance: 10% to 16.50%

Interest rate of SBI BANK:

SBI education loan can be availed without any processing fee for a repayment period of upto 15 years after the course.  The loan amount can be up to 20 lakhs.

  • For loans up to 7.5 lakhs: 25% p.a.
  • For loans above 7.5 lakhs: 50% p.a.
  • Girl students are given a concession of 0.50%
  • 1% for the full tenures of the loan if the interest is served promptly.
  • IT exemption under section 80 E is also provided.
  • The person should be a citizen of India.
  • In case the student is NRI, he or she should have a valid Indian passport.
  • Your age should be as mentioned by the bank.
  • You should have an admission offer from a recognized college or institution.
  • You should have a co-applicant while applying for the loan who should have a regular source of income.
  • The co borrower should have a good academic record and a good academic history.

The documents required for educational loan are as follows:

  • A duly filled application form of educational loan.
  • Letter of confirmation of admission from the college.
  • Copies of marksheets from class 10th to the last qualifying exam.
  • A letter of affidavit to confirm that no other loan has been taken in that respect.
  • Proof of identity and signature like passport, PAN card or driving license.
  • Proof of address like a bank statement.
  • Age proof like a Voter ID card.
  • Proof of income of the co-borrower if he or she is salaried.
  • Income proof of business men.
  • Qualification proof of highest qualification degree.
  • If you are admitted to a very good college then the approval of your student loan is easier as the bank can trust you in that way.
  • Keep all the papers and documents ready before applying for a loan.
  • The repayment of the loan should start after six months of availing the job.
  • The educational loan rate varies from bank to bank.
  • This loan can be availed by all students all across the country.
  • The methods of repayment are very flexible.
  • Different institutions have different sets of parameters for judging whether or not a person is capable for loan repayment.
  • Data of the institution where the student is going to pursue a course is scanned thoroughly.
  • The banks also see the chances of the student getting hired after the completion of his or her course.
  • The approximate salary of the student in the future determines whether or not he or she will be able to repay back the loan on time.
  • The credit scores and ratings of the students are also taken into account.
  • Financial earning of the Co applicant is also a major factor in determining the whether or not the loan should be sanctioned.
  • The traditional lenders carry out a detailed inspection of the college of the student.
  • Some financial organizations ask the students to pay the difference between the fees and the approved amount.
  • Lending institutions decide the interest rates.
  • Since the loan is applicable for educational purposes, the repayment starts immediately after the conclusion of the course.
  • The loan repayment period can be from 5 to 7 years.
  • Many banks may push you to take an insurance along with the loan. However, it is not mandatory.
  • What is the age restriction for subscribing to an education loan?

Generally, there is no age limit but some banks put age limit requirement as 16 to 35 years.

  • Do you get any tax benefits for education Loans?

The tax benefits cannot be availed immediately. However, after some time you can avail the tax benefits on the educational loan.

  • Who can act as a guarantor for educational loan?

The applicant’s parents, spouse, siblings or in laws can act as guarantor for the educational loan.

For loans up to 4 lakhs the banks do not ask for a guarantor.

  • Is an insurance required for educational loan?

It is not mandatory to take an insurance along with an educational loan.

  • Is it possible to get an educational loan without any collateral?

Yes, it is possible to get an educational loan without a collateral.

Moreover, nothing is charged from the students to get the loan sanctioned.

Instant Loan Approval

Quick Links

Cards

Investments