Close Lightbox
Education loan | Car loan | Car emi calculator | Home loan | Personal loan

OverView

Education Loan

Ever want to attend the best Business school (or) any higher studies in abroad? Do not worry if the obstacle is cash. Education loan is readily available to cover all the expenses involved in the pursuit of academics. You just be ready with all the relevant documents and a guarantor to set yourself on the road to academia.

Apply now or Call us today to know more about Education loans and prevailing interest rates. Our expert consultants will tailor specific solutions to meet your needs and guide you through the complex process and make it absolutely hassle-free.

Eligibility

  • Need to be an Indian resident
  • Age between 16-35 years
  • Loan more than a specific amount, collateral security will be required.
  • Co-applicants are required for all full-time courses.

Checklists

  • Identity, Residence & Age Proof
  • Passport size photographs of applicants, co-applicants / guarantors
  • Latest Income proof and IT returns of student applicant/co-applicants/guarantors
  • Last 6 months bank statement of student applicant/co-applicants/guarantors
  • Mark-sheets of last qualifying exams
  • Proof of admission scholarship, studentship etc
  • Details of assets and liabilities of the Co-borrower.

Benefits

  • Flexibility on collateral security
  • Loan up to 100% of education expenses, no margin money is required.
  • Repayment facility up to 10 years
  • Eligible for tax deduction benefit under section 80(E)
  • Wide range of products to choose.
  • Compare interest rates and features of various banks or FIs
  • Help to calculate your EMI and Eligibility.
  • Expert consultant’s advice on your needs and suitability.
  • No extra charges, fees or commission.
  • Simple procedure with minimal documentation and quick processing.

FAQs

1.Who is eligible for an Education Loan ?

Students who wish to pursue higher education .You need to be an Indian resident having secured admission in any of the bank's list of approved course or universities.

2.Which courses can I take an Education Loan for ? / Is there any Age criteria for taking an Education Loan ?

Anyone in the age group of 16-35 years can take this loan.

3.Which all expenses does the loan cover ?

  • Fee Payable to College/School/Hostel
  • Exam/Library/Lab fees
  • Caution deposit / Refundable deposit asked by the institution/Building fund - upported by Institution bills/ receipts
  • Purchase of Books/equipments/instrument/uniforms
  • Travel expenses/passage money for studies abroad
  • Purchase of computers - essential for completion of the course

Any other expense required to complete the course - like study tours, project work, thesis, etc.

4.What is the moratorium period ?

Moratorium Period is a holiday on repayment which would be for the course period + 1 year or 6 months after the student gets a job/start earning whichever is earlier. Some banks will also allow you a moratorium on payment of interest. This means that you can defer payments of even the interest during this period. Hence, there is no need to pay anything to the bank at all. If you opt for this option, then the interest is compounded quarterly and added to the principal sum for repayment. This option carries a higher rate of interest, but is a boon to those who cannot repay the loan during the course.

5.Is there any kind of repayment that has to be made in the moratorium period ?

Interest would have to be paid during the moratorium, the interest servicing would be of simple interest calculated on the loan amount disbursed payable monthly. Some banks will also allow you a moratorium on payment of interest. This means that you can defer payments of even the interest during this period. Hence, there is no need to pay anything to the bank at all. If you opt for this option, then the interest is compounded quarterly and added to the principal sum for repayment. This option carries a higher rate of interest, but is a boon to those who cannot repay the loan during the course.

6.What would be the tenure of the loan ?

Maximum tenure of the loan can be 7 years including moratorium period.

7.Is there a need of a co-applicant ?

Yes, a co-applicant is required for all Full-Time courses . The co-applicant can be your parents, siblings, spouse or Family Relative . Loan eligibility would be calculated on the basis of the co-applicant's income. In case of Part Time courses, No Co-applicant required. However in order to increase the eligibility a co-applicant may be added.

8.What are the detailed components of my credit profile?

The components of credit profile are age, profession/occupation, income/financials, previous credit history etc.

9.Which documents have to be furnished to avail the loan?

Declaration/Affidavit confirming that no loan has been availed from other Bank/Institution

  • Completely filled Application Form with Photographs.
  • Letter of admission from the Institute
  • Letter from the Institute stating cost break up of the program (term-wise, year-wise)
  • Marksheets from SSC onwards till the latest examination passed
  • KYC Documents for the Applicant & Co-applicant (Residence Proof , ID Proof , Signature Verfication Proof , Age proof )
  • Income Documents of the Co-applicant ( Pay Slips / ITR copy etc )
  • Declaration/Affidavit confirming that no loan has been availed from other Bank/Institution

For studies abroad - In addition to the above list of documents - Pls Provide :

  • Letter from the Head Of Department ( University)Visa approval papersTravel papersGMAT/GRE/SAT scoreI- 20 in case of applicant going to the USA
  • Is there a prepayment penalty?

  • Depending on the bank offering an educational loan, there is a prepayment penalty of 5% on the outstanding principal amount. There are some banks which do not have a prepayment penalty.
  • Can I get another loan for further education?

  • Second time Education Loan can be sanctioned to the same student borrower for completion of next higher course at the discretion of the Bank. A student who has taken the loan for a Bachelors degree can apply for another loan for the completion of Master's degree.

Talk To Us Now

Indian NRI