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 Bank||Loan Amount/ Interest Rate||Max. Loan Amount||Repayment 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 lakhs||5-7 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 lakhs||Maximum 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 lakhs||Loans 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 Limit||Minimum 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 Bank||Bank of Baroda||Bank of Punjab|
|Allahabad Bank||Bank Of India||Bank of Maharashtra|
|Axis Bank||Bank of Rajasthan||Bassein Catholic Bank|
|Bharat Overseas Bank||Canara Bank||Catholic Syrian Bank|
|Central Bank of India||Centurion Bank of Punjab||Citi Bank|
|City Union Bank||Corporation Bank||Dena Bank|
|Development Credit Bank||DhanaLakshmi Bank||Federal Bank|
|HDFC Bank||Indian Bank||ICICI Bank|
|HSBC||Indian Overseas Bank||IDBI Bank|
|ING Vysya Bank||Jammu & Kashmir Bank||Karnataka Bank|
|Karur Vyasa Bank||Punjab & Sind Bank||Oriental Bank of Commerce|
|Lakshmi Vilas Bank||Punjab National Bank||Ratnakar Bank|
|Saraswat Bank||SBI Commercial and International Bank||South Indian Bank|
|State Bank of Bikaner & Jaipur||State Bank of Hyderabad||State Bank of India (SBI)|
|State Bank of Indore||State Bank of Mysore||State Bank of Patiala|
|State Bank of Saurashtra||State Bank of Travancore||Syndicate Bank|
|Tamilnad Mercantile Bank Ltd||Union Bank of India||UCO Bank|
|Thane Janata Sahakari Bank||United Bank of India||United 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
Student Loan Rate of Interest:
|Loan Amount||Rate of Interest|
|For loans upto Rs.4 lacs||13.35% p.a.|
|Above Rs.4 lacs and upto Rs.7.50 lacs||13.60% p.a.|
|Above Rs.7.50 lacs||11.60% 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 Limit||Repayment Period|
|Upto Rs. 4 Lacs||Upto 10 years|
|Above Rs. 4 Lacs and upto Rs. 7.5 Lacs||Upto 10 years|
|Above Rs. 7.5 Lacs||Upto 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?
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.
You May Also Like To Visit This Section