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How to Apply for Education Loan at Lowest Interest Rate – Detail Procedure

How to Apply for Education Loan

Today we are giving you full detail on How to Apply for Education Loan? Many times, if the family’s economic situation is not good, most of the youngsterscannot complete their studies and their dreams remain incomplete. In order to remove this problem we are going to tell you the whole procedure of Education Loan at Lowest Interest Rate.

As well as increasing the expenditure of all facilities in every sector, the cost of education has also increased significantly. If money is barrier in your studies then you should know that many banks and financial institutions are giving a loan for study, so that more and more young people can get opportunities to fulfill their dreams.

Need of Education Loan

With the help of this education loan students can continue their studies, or they can go abroad and start their study according to their mindset. These loans are given on some terms and conditions, you must know before applying for any loan.

You can grab all the vital and knowledgeable things about Education Loan terms and conditions from this page. You can also apply for any loan by going through the instructions about How to Apply for Education Loan, available in this article, which is well furnished by the team of www.recruitmentinboxx.com

How to Apply for Education Loan

What Is Education Loan?

First of all you need to understand what education loan is? Here belowWe are defining its definition in simple language.

Students who are promising in studies and he/she wish to do more studies but they cannotcontinue it, reason: lack ofmoney. To resolve this problem the bank gives education loan, which help to students to continue their study as per their wish.

Eligibility Criteria for Education Loan:

  • Applicants should be a citizen of India.
  • Applicant’s course and college should be eligible for Loan.
  • If loan amount is more than Rs 4 Lakh, then you will require a guarantor.
  • No outstanding education loan from any other organization.
  • Individuals scored marks in 10+2 must be above 60% for general category and 50% for SC / ST / OBC category.
  • Students must have secured seat of admission to professional/ technical programmes in India or abroad through entrance Test/ Merit based selection process.

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Advantages of Education Loan:

There are many benefits to education loan, which are being described below:

  • Accessible to Higher Education:

It is mandatory for the students to take up the burden of their education in an instant time. This allows them to understand their responsibilities as soon as possible.

At the same time, when loan holder gets the job, after studying the monthly installments has been deducted from the loan holder’s account. Therefore, studies do not look like a burden in such a situation.

  • Provided for people of different levels:

Education loan is provided to all categories of the people. Generally education loan is providing for enhancing education, so that the common youth can get higher education.

  • Tax Benefits:

This loan also provides tax benefits for parents of students. Studying through education loan, all taxes are ignored. Therefore, Education Loan is a good resource for studying tax free.

  • Low interest rate:

Government public subsidies are given on education loan in many public banks. Also, the tax rates of the government are also reduced. Many times the government also offers a variety of exemptions for the advancement of the education of its students in different countries.

  • Better payment terms:

Education loan is an easy way to pay back than other loans. Students are not worried about payment until the completion of studies. Once the job is done, the loan can be repaid gradually.

  • Ease of taking loan:

The process of getting education loan is much easier than other loans. Loan can be obtained for higher education by completing very easy procedures.

  • Assistant to make students responsible quickly:

Students, who are studying with the help of Education loan, feel the need to repay loans after some time. So, they work hard to get a job as soon as possible and try to repay the loan. With this effort, they get a job quickly and they become very responsible in life very soon.

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Expenses Covered Under Education Loan:

  • Admission or Examination Fees payable at college/ school/ hostel
  • Attainment of books & equipment’s/ instruments/ uniforms.
  • Prudence deposit/ building fund/reimbursed deposit maintained by Institution bills/receipts
  • Examination /Library/ Laboratory fee
  • Purchase of computers – essential for completion of the course
  • Insurance cover for student.
  • Travel expenses/ passage money for studies in abroad (loan for two wheeler up to Rs.50, 000/- could be granted by bank if distance of school and hostel is considerably long).

Documents Required Before Applying For The Loan

Student and parents must have to make a joint account and has to submit the following documents copy with dully filled in application form:

  • Mark sheets of last qualification examination.
  • Proof of enrollment in institute/ university, studentship, etc.
  • Fee structure or expenses schedule for the particular course.
  • 2 passport size photographs.
  • PAN Card of student or Parent/ Guardian
  • Borrower’s bank account statement for last six months
  • Income tax returns/ IT assessment order (If IT Payee) of past 2 years
  • Detailed statement of resources and accountabilities of the Co-borrower.
  • Income certificate or Salary slips, etc. for Income proof.

Documents must be executed both by the interested student and guardian/ or parent as joint borrower –

  • Up to Rs. 4 lakh no security required
  • Above Rs. 4 lakhs and up to Rs. 7.5 lakhs – warranty in the form of satisfactory third party guarantee.
  • Above then Rs. 7.5 lakhs – responsibilities of parents with tangible collateral guarantee value along with assignment of future income of the student for the payment of installments.

Do You Know: Procedure To Apply For Education Loan In Any Bank

The Amount Of Education Loan:

Nowadays, banks have become quite liberal in terms of education loan and loans up to 100% of education expenditure can be obtained. According to the new rules, if you have decided to take education in any of the Indian institutes, then you can take loan of up to four lakh rupees for education very easily.

If the amount is more than 4 lakh, then the student has to make arrangements for the total education expenditure or the required money upto 5-15%. This amount is about 5% in relation to the Margine Money home course and 15% for foreign courses.

Interest Rates – Education Loan Interest Rates:

The education loan is a bit cheaper than any other loan like Personal Loan, Business Loan. However, the interest rates on these loans depend on the amount of taken loan. Nowadays, banks have been providing education loans from 9.7 to 12.6% interest rates.

Most of these loans are for a period of 15 years. The interest can be determined on the basis of fixed or floating rates.

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Process to apply for education loan:

  • Candidates who are going to apply for education loan you must have a bank account on that bank. If you don’t have an account you should open it in the bank.
  • Once you have determined to study at an institution and completed the procedure of admission, then you will have to focus on amount of learning loan and complete expenses incurred for education.
  • After that go to relevant bank and ask for education Loan form.
  • Now fill the education loan form carefully and correctly before filling read all the instruction carefully..
  • Get all your supporting documents ready and the attach photo copies of the original documents.
  • At last submit the education loan form and wait till your application gets approved.
  • After submission and verification of all the documents, you will have to appear for an interview.
  • Once your education load form is approved the required loan amount will be deposited directly to your bank account or in other ways.
  • The period of the loan is determined on the merits of each case but normally would not exceed 5 years.

Lists of Private Sector banks, Public Sector Banks as well as Foreign Banks in India:

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
KarurVyasa BankPunjab & Sind BankOriental Bank of Commerce
Lakshmi Vilas BankPunjab National BankRatnakar Bank

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List of Interest Rate Charged by Bank:

Bank1 Year to < 2 years2 Years to < 3 years3 Years to < 5 yearsMore than 5
Allahabad Bank8.75%8.50%8.50%8.00%
Andhra Bank9.25%8.50%8.60%8.00%
Axis Bank9.25%8.50%8.50%8.50%
Bank of Baroda9.35%9.00%8.50%8.50%
Bank of India9.25%8.25%8.25%7.00%
Bank of Maharashtra8.30%8.60%8.60%8.30%
Canara Bank9.10%9.25%8.75%8.75%
Central Bank of India9.25%8.75%8.80%8.80%
Dena Bank9.00%9.00%9.00%8.75%
HDFC Bank8.50%9.25%8.25%8.25%
ICICI Bank9.25%9.25%8.75%8.75%
IDBI Bank9.25%9.25%9.00%9.00%
Indian Bank9.50%8.50%8.50%8.00%
Indian Overseas Bank9.25%8.75%9.00%9.00%
Indus Ind Bank9.00%8.75%9.50%8.75%
J&K Bank9.50%8.75%8.50%8.50%
Karnataka Bank9.75%9.50%9.25%8.75%
KarurVysya Bank10.25%9.75%9.00%9.00%
Kotak Bank9.25%9.40%9.25%9.25%
Punjab and Sind Bank9.55%9.60%9.05%8.75%
South Indian Bank9.75%8.75%8.75%8.25%
State Bank of India8.75%9.25%8.25%8.50%

Problems faced by applicants while pertaining for education loan:

  • Rising cost of learning will indirectly concern to restrictions on maximum loan amount.
  • In many cases, tuition fees acquired for pursuing higher education abroad is minimum Rs 25 lakhs, while the maximum loan available is Rs 20 lakhs only.
  • Education loan is made available in various branches only.
  • Hence the aspirant may not be able to obtain the loan from branches outside of home town.
  • If you wish to get loan for studies in abroad then you have to arrange minimum margin amount for education loan for abroad that is 15 percent charged by bank.

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Also all banks unique providing of education loan sanction before admission has helped many students show ‘proof of funds’ to colleges and gain admission in University of their choice. Hence, with the in strength understanding of students needs to pursue higher education.

Note:

We hope that the detail about How to Apply for Education Loan provided above will be helpful for you. You may stay in touch with our web portal www.recruitmentinboxx.com to get latest updates as we update our pages time to time.

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One comment

  1. i am a poor student but i am a smart student so, i need some money

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