Getting an Education Loan

Getting an Education Loan

Getting an Education Loan

Students are ready to study in Best Future abroad or in a good university in their own country. But the truth is that it is expensive for many people. Let us tell you that lakhs of Indian students study in different universities or colleges in the country and abroad. Due to the rapid increase in the number of students doing such studies, not all of them get the benefit of the scholarship.

So those who cannot get this benefit prefer to take Education Loans for Students. But many friends are confused about the process of how to apply to take this loan. So today we will tell you what is Guide to Getting an Education Loan, we will tell you the complete process.

What is Guide to Getting an Education Loan

What is Guide to Getting an Education Loan : Today technology has developed so much that a person can do many real work at home through his mobile or laptop. Many genuine banks have reached your doorstep through this online medium. Then applying for Education Loans online has become very easy. Because of this, the problem of bank lines and bank rushes and wasting time is avoided.

You can apply online in two ways:

  • You can fill the Education Loan Application Form online and submit the application by uploading the required documents. Today, every bank has created its own website and mobile app. With this, you can avail many services including loans online at home.
  • Otherwise, if you provide all the details, the lending bank will contact you and discuss the loan terms and details with you. After that you can get the loan by submitting all the documents. You can also apply through e-mail or other means.

What is Guide to Getting an Education Loan

Are you one of those students who have just taken admission in college and are looking for education loans? Here’s what you need to know about your eligibility for a loan, interest rates and where you can apply for such a loan.

Public sector banks (PSBs) are dominant players in the Indian education loan market. RBI data presented in response to a Lok Sabha question in March 2022 shows that PSBs account for over 91% of lending to the education sector by scheduled commercial banks.

Interest rates, collateral – Information on interest rates and collateral

What is Guide to Getting an Education Loan : Many PSBs offer a range of education loan schemes specifically targeting students taking admission in leading MBA, engineering, medical and law colleges. Depending on where the institute ranks in its preference list (such as AA, A, B or C, for instance), the bank will be willing to extend loans up to a certain amount without tangible collateral.

For example, State Bank of India provides loans up to ₹40 lakh at a floating rate of 7.5%, institutions that qualify in the ‘AA’ list can get scholar loans without any collateral. Those who are not covered in any of the list, can apply under student loan scheme of banks, though at 10.05% (floating interest rate). Later, collateral is required for loans above ₹7.5 lakh.

What is Guide to Getting an Education Loan : Similarly, Bank of Baroda offers loans to students of leading institutions at a floating rate of 7.95%. The maximum permissible loan amount is ₹ 40 lakh without collateral and otherwise up to ₹ 80 lakh based on higher ranking colleges. Its Baroda Gyan Yojana covers a range of courses and charges 10.20% (floating rate) for loans above ₹4 lakh. Even higher loans require tangible collateral.

Eligibility – Eligibility

What is Guide to Getting an Education Loan : Highlights some of the key factors banks consider when reviewing applications for education loans. In addition to the institution’s reputation and accreditation, the process includes reviewing the curriculum – whether accredited or not; Collateral — whether the applicant has the ability to provide suitable and adequate collateral; And details about the co-borrower (parent / guardian) – their employment history and credit score. Education loans require a co-borrower who can be the parent/guardian of the applicant. If the student fails to repay the loan, the responsibility lies with the co-borrower.

No distinction is made between salaried and self-employed parents and loan approval depends on the merits of each case.

Alternatives to banks – alternatives to banks

What is Guide to Getting an Education Loan : If you are unable to get a bank loan, an education loan-focused non-banking finance company (NBFC) is an option. However, the loan is likely to be available at a higher cost. “Students attending top colleges around the world can easily get credit from any financial institution. NBFCs have no limit on the maximum loan amount and provide multiple loan repayment options.

Similarly, it provides concessions such as no upper limit on the loan amount, no margin money (a certain percentage of the cost of education that the borrower must fund himself), and partial collateral.

Offline Education Loan Procedure

What is Guide to Getting an Education Loan : You can get information about the conditions and details of the bank or company you have chosen by visiting the branch . After that, you can get the loan by filling the loan application form and submitting the necessary documents.

By calling the lender – You can discuss the details of the loan by contacting any lender telephonically. And you can tell whether you are ready to take a loan.

Education Loan by Virtual Assistant

What is Guide to Getting an Education Loan : Today many technology based banks and institutions adopt digital methods to provide more convenience and service to their customers. In which virtual assistants are resorting to remove the doubts or questions arising in your mind and help in the loan application process.

For example, if you are using Axis Bank’s mobile app and want to get information about education loans, the bank will act as a virtual assistant ‘Chat with Axis Aha!’ gives the option of In which you can write the doubts or questions that arise in your mind and get their answers.

List of banks providing Education Loan

What is Guide to Getting an Education Loan : Many banks in the country give education loans to students. Following is the list of banks providing education loans.

Education Loan Provided
Banks Name
More Detail
Links
SBI Education LoanClick Here
Canara Bank Education LoanClick Here
Bank of Baroda Education LoanClick Here
Axix Education LoanClick Here
HDFC Education LoanClick Here
IDBI Bank Education LoanClick Here
Union Bank of India
Education Loan
Click Here
Kotak Mahindra Bank
Education Loan
Click Here

List of banks providing Education Loan

Types of Education Loans

What is Guide to Getting an Education Loan : There are many ways and types of getting an education loan in the country. Following are the details of some of the types of loans that can be availed.

Domestic Education Loan

Students who want to study in a good university or college while staying in India can apply for this type of loan. The loan will be available only when the applicant student is admitted to an educational institution in India and fulfills all other loan eligibility criteria.

Overseas Education Loan

Students who want to study abroad in the country of their choice can apply for this type of loan and get a loan. These types of loans cover airfare, accommodation and tuition fees.

U.G Education Loan

This type of education loan is given to provide financial assistance to students. So that they can complete their undergraduate degree and get a good job in future and live a good life.

P.G education Loan

Students who obtain an undergraduate degree may wish to continue their education through post-graduation. Post graduation is usually a 2 year course. By availing this type of loan, the student can get further education according to his field.

Career Development Loan

This loan is for those who are working in a company and want to pursue a professional course to get a better job opportunity or promotion. These types of loans are beneficial for such individuals to get admission in good business or technical institutes to develop their skills and take their career to greater heights.

FAQ Of What is Guide to Getting an Education Loan

How to get educational loan, where to apply etc. are in the minds of students. In which the following are the most common questions.

How to get Education Loan?

Education loan can be availed by going to the bank in person and depositing the documents, through the online website and now also through the mobile application.

How much education loan can be availed?

To get an education loan, the loan is given based on the student’s admission fee, cost of education.

How to Calculate Education Loan EMI

Currently there are many calculators available for calculating education loan EMI. In which Home Loan EMI Calculator , Car Loan EMI Calculator , Personal Loan EMI Calculator etc can be calculated with calculator.

Which education loan scheme is implemented in Bank of Baroda?

Bank of Baroda has an education loan scheme called Baroda Gyan Yojana.

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