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How to Apply for Education Loan – Student loans, Banks Low Interest Rate

How to Apply for Education Loan

Education is most significant investment one makes in life. But, with increasing College fees every year, it becomes complex for students to have Best Education. Under such conditions, applicant looks for education Loans. But How to Apply for Education Loan and which bank offers best education loans under low interest.

Right Career Begins With Right Education!!!

This is very puzzling for parents and students to select the best one for Education Loan. Still the financially backward sections of society can get education loans under the Government-Sponsored Subsidy Schemes.

Most of the banks in India provide education loan facility which provides an opportunity and ray of hope to those students whose academic record is excellent but they can’t study further due to financial insecurity.

If you want to apply for loan but don’t know How to Apply for Students Loan, then read this page of www.recruitmentinboxx.com completely to get complete information regarding Education Loan under Low Interest Rate.

How to Apply for Education Loan

Education Loan Rate of Interest As Per Bank:

Name of BankLoan Amount/ Interest RateMax. Loan AmountRepayment Tenure
State Bank of India (Base Rate- 9.70%)Upto Rs.4 lakhs / 13.35% p.a (base rate + 3.65%) Between Rs.4 lakhs- Rs.7.5 lakhs / 13.60% p.a(base rate + 3.90%) Above Rs.7.5 lakhs / 11.60% p.a (base rate + 1.90%)Studies in India- Rs.10 lakhs Studies Abroad- Rs.30 lakhs5-7 years
Axis Bank (Base Rate- 9.95%)Upto Rs.4 lakhs / 16.95% p.a (base rate + 7.00%) Between Rs.4 lakhs- Rs.7.5 lakhs / 17.95% p.a (base rate + 8.00%) Above Rs.7.5 lakhs / 15.95% p.a (base rate + 6.00%)Studies in India- Rs.10 lakhs Studies Abroad- Rs.20 lakhsMaximum 7 years
Punjab National Bank (Base Rate- 10.00%)Upto Rs.4 lakhs / 12.00% p.a (base rate + 2.00%) Between Rs.4 lakhs- Rs.7.5 lakhs / 13.00% p.a(base rate + 3.00%) Above Rs.7.5 lakhs / 12.50% p.a (base rate + 2.50%)Studies in India- Rs.10 lakhsLoans upto Rs.7.5 lakhs : 10 years Loans above Rs.7.5 lakhs : 15 years
Avanse Education Loan (Avanse Base Lending Rate- 11.50%)Calculated individually based on course being pursued and the accompanying cost.Minimum- Rs.50,000 Maximum- No LimitMinimum Repayment Tenure- 12 months Maximum Repayment Tenure- 120 months

Also Check: Scholarship in India

Are You Eligibility For Education Load?

  • Students should be an Indian National
  • Secured admission to professional/technical courses in India or Abroad
  • Have Good academic career record
  • Not having any outstanding education loan from any other Institution
  • Your parent or co-applicant should have enough income

Conditions to apply for education loans in India:

Some basic requirements need to be fulfilled while taking a loan.  These conditions are as follows: Check details for How to Apply for Education Loan Interest Subsidy!!!

The main determinants are the fees of the course to be pursued and the applicant’s annual family income.
There must be a co-applicant, which can be either one of the parents or sibling or spouse.
Loans below Rs.4 lakh do not require a guarantor or security.
For loans above Rs. 4 lakh, there should be a third-party guarantor.
For loan amount more than Rs. 7.5 lakh, collateral is necessary.
For studying abroad, a student must also look for part-time jobs or sponsorship as the loan amount itself is not sufficient.
Insurance is compulsory for studying abroad.

Read Here: Strategies of Personality Development

How to Apply for Education Loan under Low Interest Rate?

In order to apply for an educational loan, you will have to prepare a number of documents beforehand. Follow the steps and complete your application accordingly and get complete details regarding How to Apply for Education Loan.

  • Open A Bank Account: If you do not have an account you must open it in the bank from which you wish to take loan.
  • Before taking the loan, get expenditure quotation ready from the institution for taking into consideration the overall expenses of education and the loan amount.
  • Now get an application form of education loan from a branch of any bank. We have listed some of the banks name in the below section.
  • Go through the form carefully and must read all the terms and condition regarding form filling from the bank employees. So, you should get all the fields correctly under the guidance of the employee of SBI.
  • Get all your supporting documents ready and the attested copies of the original documents. The documents required are mentioned above.
  • Submit the application form and wait until your application gets approved.
  • Once your application is approved the required loan amount will be deposited directly to your bank account either in installments or as one-time payment.
  • If your application is rejected it means that there might be some error in form. They will tell the alterations and what needs to be done to get it approved

Must Read: Student Success Strategies

Banks offering Education Loans in India:

Given below are list of some of Private Sector banks, Foreign Banks and Public Sector Banks in India providing Education loan to students. Check List of Banks with Low Interest Rate.

Andhra BankBank of BarodaBank of Punjab
Allahabad BankBank Of IndiaBank of Maharashtra
Axis BankBank of RajasthanBassein Catholic Bank
Bharat Overseas BankCanara BankCatholic Syrian Bank
Central Bank of IndiaCenturion Bank of PunjabCiti Bank
City Union BankCorporation BankDena Bank
Development Credit BankDhanaLakshmi BankFederal Bank
HDFC BankIndian BankICICI Bank
HSBCIndian Overseas BankIDBI Bank
ING Vysya BankJammu & Kashmir BankKarnataka Bank
Karur Vyasa BankPunjab & Sind BankOriental Bank of Commerce
Lakshmi Vilas BankPunjab National BankRatnakar Bank
Saraswat BankSBI Commercial and International BankSouth Indian Bank
State Bank of Bikaner & JaipurState Bank of HyderabadState Bank of India (SBI)
State Bank of IndoreState Bank of MysoreState Bank of Patiala
State Bank of SaurashtraState Bank of TravancoreSyndicate Bank
Tamilnad Mercantile Bank LtdUnion Bank of IndiaUCO Bank
Thane Janata Sahakari BankUnited Bank of IndiaUnited Western Bank

Check State Wise: UGC Declared 23 Fake Universities in India

Documents Required for Education Loan:

  • Admission letter
  • Completely filled loan education form
  • Statement of cost of study
  • 2 passport size photographs
  • PAN Card/ AADHAR Card of the student and Parent/ Guardian
  • For proof of identity & residence (Driving Licence/Passport/Electricity bill/Telephone bill)
  • Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
  • Proof of income Of parents (salary slips/ Form 16)
  • IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
  • Student/Co-borrower/ guarantor’s bank account statement for last 6 months

Also Read: List Of Documents Required For Education Loan

Student Loan Rate of Interest:

Loan AmountRate of Interest
For loans upto Rs.4 lacs13.35% p.a.
Above Rs.4 lacs and upto Rs.7.50 lacs13.60% p.a.
Above Rs.7.50 lacs11.60% p.a.

Repayment Of Education Loan:

Repayment Holiday – Course period + 1 year or 6 months after getting job, whichever is earlier. The loan is to be repaid in 10-12 years after beginning of repayment.

Maximum Loan LimitRepayment Period
Upto Rs. 4 LacsUpto 10 years
Above Rs. 4 Lacs and upto Rs. 7.5 LacsUpto 10 years
Above Rs. 7.5 LacsUpto 12 years

Read More: How To Get A College Scholarship

Advantages Of Education Loans:

Education Loans is Applicable for All Students: Any applicant who wants to study for higher studies can apply for an education loan. Even the monetary backward sections of society can take education loans.

Education Loans is Applicable for All Courses: Education loan can be used to pursue all types of courses — Graduation, Post-Graduation, Diploma Courses, Vocational Courses — whether in India or in Foreign Colleges.

Easily Available: Study Loans are commonly and easily available. Actually, they are a priority product in all banks as per the Reserve Bank of India’s guidelines.

Diverse Loan Amounts: Every Bank provides loan anywhere between Rs. 2 lakhs and 22 lakhs for studying in To study abroad, the loan amount goes up to Rs.20 lakhs.

Benefits: Education loans comprises many additional advantages like caution deposits, library fees, building deposits, laboratory fees, tuition, examination fees, hostel fees, money for buying books, instruments and uniform, travel expenses for studies abroad, etc.

Check Here: What to do after Graduation?

Final Words:

To get an education loan, students can approach with the following documents as mentioned above along with the completed loan application form to any one of the banks from the list of given banks.  Once you have completed your higher studies and joined a job now it’s the turn to repay your debts.

Thus pay off your required amount of loan as early as possible so as to maintain your credibility and stay away from worries in future. If applicants have any query about How to Apply for Education Loan, then drop the comment in below provided comment box.

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