How To Get A Education Loan In India?

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How To Get A Education Loan In India
Loan Amount –

Studies in India

Medical Courses: Upto Rs 30 lacs Other Courses: Upto Rs 10 lacs (Higher loan limit for studies in India may be considered on cases to case basis, maximum upto Rs 50 lacs

Studies abroad

Upto Rs 7.50 lacs (Higher loan limit for Studies abroad are considered under Global Ed-vantage Scheme, maximum upto Rs 1.50 Crores)

Checklist of Documents to be submitted along-with duly filled Loan Application Form

Mark sheet of 10th, 12th, Graduation (if applicable), Entrance Exam Result Proof of admission to course Schedule of expenses for course Copies of letter conferring scholarship, free-ship, etc. Gap certificate, if applicable (self-declaration from student for gap in studies) Passport size photographs of Student / Parent / Co-borrower / Guarantor (1copy each) Asset-Liability Statement of Co-applicant / Guarantor (Applicable for loans above Rs 7.50 lacs) For Salaried Persons

(a) Latest Salary Slip (b) Form 16 OR latest IT Return (ITR V)

For other than Salaried Person:

(a) Business address proof (if applicable) (b) Latest IT Returns (if applicable)

Bank Account Statement for the last six months of Parent / Guardian/ Guarantor Copy of Sale Deed and other documents of title to property in respect of immovable property offered as collateral security / Photocopy of Liquid Security offered as collateral Permanent Account Number (PAN) of Student / Parent / Co-borrower / Guarantor AADHAAR (mandatory, if eligible under various interest subsidy schemes of GOI) Passport (mandatory for Studies Abroad) Submission of OVD (refer to table below)

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What are the requirements for education loan in India?

Required Documents 2 photographs of passport size. Copy of exam mark sheets of 10th/12th or latest education certificate. Statement of course expenses/cost of study. Aadhaar Card and Pan Card of the student and Parent/ Guardian.
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Which bank in India gives education loan easily?

Axis Bank brings you Education Loans for studies both in India and abroad starting from Rs.50,000 at attractive interest rates. With an Axis Bank Education Loan you can enjoy a host of benefits such as simple documentation, quick loan disbursal, tax benefit u/s 80(E), long repayment tenure, etc.
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How much education loan can I get in India?

Educational loans in India can vary between Rs.1 lakh to upwards of Rs.30-50 lakh.
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Who qualifies for student loans?

To qualify for the loan, you must be a South African citizen or person living in South Africa permanently and earn more than R3 000 a month. The loan can be in the name of: A parent, who has proof of income. A sponsor or guardian, who has proof of income.
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Which loan is best for education?

List of Educational Loans – Leverage Edu has formulated a list of best education loans in India that can help you reach your dream university:

Bank Student Loan Interest for Indian Universities Student Loan Interest to Study Abroad
Axis Bank 13.70% 13.70%
Bank of Baroda 7.70% 8.35%
Bank of India 9.05% 9.05%
Canara Bank 8.50% 8.50%
Central Bank of India 8.50% 8.50%
Federal Bank 10.05% 10.05%
IDBI Bank 6.90% 8.40%
Indian Overseas Bank 10.65% 10.65%
PNB 7.05% 10.65%
SBI 7.00% 8.80%
UCO Bank 9.30% 9.30%
Union Bank of India 8.40% 8.05%

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Which student loan is interest free?

Slightly easier: the low interest student loan – On the other hand, low interest student loans are more readily available, depending on your eligibility and/or credit. Federal student loans for the 2019-2020 school year are at 5.045% for undergraduate loans, and 4.529% for unsubsidized graduate loans.

  • Remember, a subsidized student loan, that you could be eligible for through your FAFSA (Free Application for Federal Student Aid) application, means you do not pay on the interest of the loan while you are still in school.
  • The government subsidizes, or takes care of that money, while you’re a student.

Yes, you will accrue interest on the loan, but you’ll only be responsible for that interest after graduation. Not eligible for a subsidized student loan? Private loans are also available, but the interest rate will be determined by your credit. There are a variety of banks and lenders, with both variable and fixed rate student loans.
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Do banks give student loans?

Should you take an education loan? | Education Loans in India 2021 | Ankur Warikoo Hindi Video

Choosing a Private Loan Lender – When college-bound students have exhausted all other forms of financial aid, it may be necessary to consider a private student loan. Most national banks and private lending institutions offer their own types of education loans.

  1. Each lender sets their own terms and conditions, and no two private student loans will be exactly alike.
  2. Different lending institutions will offer different interest rates, loan limits, processing fees and repayment requirements.
  3. Students should understand all aspects of the loan being considered before signing any agreement.

Private student loans are available from most national banks, as well as from private lending companies. Some of the more notable lending institutions offering student loans include:

Citibank Wells Fargo Chase SunTrust Sallie Mae

Private lenders offer loans for a wide variety of students, addressing a wide range of student needs. The most common private student loans include:

Undergraduate Student Loans Graduate Student Loans Loans for Medical School Loans for Law School Student loans for the Bar Exam

Banks and private lending institutions make applying for student loans easy, and many offer online application processes. However, students should not be swayed by convenience and accessibility. Private student loans require careful consideration, and many college students have been undone by taking on more than they can handle in private lender loans.
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What happens if you don’t pay your education loan?

#3. What happens if I don’t repay an education loan with collateral involved? – Some lenders require the borrower to pledge an asset/collateral when the loan amount is high. Additionally, pledging collateral, even when it isn’t required by default, can help you secure a loan at lower interest rates.

  1. If you have availed an education loan by pledging collateral, the repercussions of not repaying it on time can be costly.
  2. When you don’t repay the EMIs on time, the lender initially sends you notices.
  3. If you fail to respond and get the repayment back on track, the lender sends you repeated warnings.
  4. If you don’t respond even after these repeated notices, the loan is classified as an NPA.

The lender is then legally entitled to take ownership of the assets/property that you have pledged as collateral. The lender can auction the property/asset to recover the cost of the loan. Besides losing the property, the borrower’s credit score also takes a hit, making it difficult to secure any loans in the future.
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Is it hard to get student loans?

Insider’s experts choose the best products and services to help make smart decisions with your money ( here’s how ). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page. You can get both a federal and private student loan by applying online. Hill Street Studios/Getty Images When you buy through our links, Insider may earn an affiliate commission. Learn more.

You’ll apply for a federal loan with the FAFSA, and a private loan on the lender’s website. The FAFSA takes about an hour to complete, while private applications can take as little as a few minutes. You’ll need a credit check to get a private loan and to get a Direct PLUS Loan from the government.

Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you’re on the go. If you need help paying for college and didn’t receive enough money through scholarships or work-study programs, you may need to take out a student loan to cover the costs of school.

College Ave Undergraduate Student Loans Sallie Mae Undergraduate Student Loans Ascent Undergraduate Student Loans

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How much time does it take to get an education loan in India?

Basic Criteria for Educational Loan One of the most vital questions that you may wonder about is the amount of the educational loan. In general, you can get up to 4 lakhs of educational loan for higher studies without any collateral. Under education loan scheme, you can get a maximum of 15 lakhs for studies in India and more 25 lakhs for abroad studies.

When you take education loan up to 4 lakhs, only the student and the parent have to sign the document and no collateral are necessary. However, if your loan amount is between 4 lakhs and 7.5 lakhs, you will have to provide third party guarantee to the bank. If the loan is above 7.5 lakhs, you will have to furnish the bank with collateral documents.

These are documents of any securities like NSC which the bank can sell to recover the amount if you fail to pay. How to apply for an educational loan for higher studies? In order to apply for an educational loan, you will have to prepare a number of documents beforehand.

The process goes as follows: Once you have determined to study at an institution and completed the process of admission, then you will have to concentrate on taking out an educational loan. Here are the documents which you should keep ready: You will have to provide a proof of admission to the selected recognized institution.

Proof of your consistently high academic performance along with the last mark sheet will need to be produced. The cut-off marks generally differ from general students to reserved students. You need to produce a schedule of fees. Depending on the amount that you are applying for, you will need to produce income statement, statement of assets and liabilities etc.

If you are going to study abroad, you need to produce your passport with a valid visa also. Your education loan will cover a number of things in addition to your tuition fees. These include hostel fees, exam fees, library fees, purchasing books, travel and other expenses for educational projects. After all the documents have been submitted and verified, you will have to appear for an interview.

It is best to know as much as possible about the course and the institutions that you have chosen. It takes around 15 days for an educational loan to be sanctioned. Once it has been sanctioned, you will get a promissory note which you will have to sign.

  1. In most cases, banks pay the institution directly and or to you.
  2. You should check the repayment clause.
  3. In most cases, repayment starts six months after the end of the course or as soon as you get a job – whichever comes earlier.
  4. Interest rates on educational loans depend on a number of factors.
  5. In general, they vary between 10% and 15% rates of interest.

You can claim tax deduction on the interest of the education loan. However, no deduction can be claimed on the principal. : Basic Criteria for Educational Loan
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