Education Loans: Nowadays, education is more expensive in India. Children and parents both are struggling for good grades, the best performance, career. Student and their parents suffer from so many problems like financial conditions and economic implications of education.
Day by day education expenses become very high and parents are very worried about their children’s future. Some Parents want to send their children abroad to complete their higher studies. We know that it is not easy for any middle-class parents to afford it but we have a solution for fulfilling your dream and now in the picture education loan is coming.
Dear Parents and Students, you don’t need to suppress your dream because with the help of an education loan, you will go abroad for higher studies and you will also complete your studies in India in taking admission to your dream college.
Education Loans in India
Education loans and Scholarships are only the two ways to help students to pursue their academic ambitions. In India, there are so many banks that offer education loans but finding the best bank is a tough challenge in itself.
best education loan banks offer additional features to their customers like education loan insurance, margin fee waiver, processing fee waiver, etc.
What is an Education Loans?
Education loan is the financial offer and support by the bank or providing loan to the candidate who wants to pursue educational, technical and other courses in abroad. Education loan is the simple given and take offer. In education loan they are several banks who provide loan for the education because some people are can’t afford education expenses.
In India they are so many parents who wants to send their children to the abroad for their higher studies and bright future but they have not enough financial support so that we can take loan with the bank and after the completing course loan provider allows to the student to repay the loan.
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| Loan | Amount |
| Education loan for domestic education | Min amount: INR 20,000 Max amount: INR 45,00,000 |
| Interest rate for domestic education loan | Min amount: 8.35% Max amount: 15.8% |
| tenure for domestic education loan | Min: 1 year Max: 20 year |
| Education loan for foreign education | Min: INR 1,50,000 Max: INR 1,50,00,000(1.5 crore) |
| Interest rate for foreign education loan | Min: 9.7% Max: 16.2% |
| tenure for foreign education loan | Min: 1 year Max: 20 year |
Types of Education Loans
as be knows their several type of education means there so many courses provided by the University and colleges. It’s totally depend on the student what want to choose for their future and career. Let me tell you the types of education loan.
- undergraduated education loan for higher education after completing Secondary Education.
- post graduation education loan completing undergraduated education.
- career growth education loan for certificate and training .
- parent availing loan for their children education.
education loan just like investing Finance in life line for achieving something in future and these expenses are includes tuition fees travel cost, hostel fees insurance premium and more. With the help education loan student can full fill their dream and achieve something in their future.
Expenses covered in Education Loans
just so many things which are covered with the education loan
- hostel fees
- tuition fees
- travel expenses for student going for higher study in Abroad
- cost of books
- cost of equipment, uniform and instruments
- cost of insurance premium
- library fees
- laboratory and examination fees
- cost of laptop and computer required for completing course.
- other expenses during completing course like tour, project etc.
Comparison of top Bank offering Education Loans
| Bank name | rate of interest (p.a) | processing fees |
| State Bank of India | 8.15% p.a to 11.75% p.a | up to 10000 If loan amount is below 20 lakh then there is no charge required If loan amount above 20 lakh then processing fees is 10000 + taxes |
| Central Bank of India | 8.15% to 10.60% | one percent of loan amount for Abroad study(maximum 15000 rupees) Nil for study in India |
| Punjab National Bank | 9.20% onwards | 1% of the loan amount for abroad is studies(maximum 10000 rupees) Nil for study in India |
| IDBI Bank | 8.50% onward | 1% of the loan amount for abroad studies Nil for study in India |
| Canara Bank | 9.25% onward | 0.50% of the loan amount up to Rs.10000 0.50% of the amount of loan up to Rs. 20000 |
| Bank of Baroda | 8.15% per annum onward | up to 7.5 lakh there are no processing fees Percent of loan amount up to 10000 rupees for charges above rupees 7.50 lakh |
| IDFC first bank | 10% 15% | up to 1.5% of the loan amount |
| bank of Maharashtra | 9.45% onward | contact with the bank |
| Axis Bank | 13.70% to 15.20% | GST + 2% of loan |
| Bank of India | 11.05% to 11.85% | no processing fees for study in India |
| ICICI Bank | 9.85% onward | GST + up to 2% |
| Federal Bank | 12.55% onwards | contact with the bank |
| Tamilnad Mercantile Bank | 11.75% to 13.00% | 1% of the sanctioned if loan amount more than 7.50 for abroad studies |
| Kotak Mahindra Bank | up to 16% | NIL |
| HDFC Bank | 9.50% | 1% for abroad studies and Nil for study in India |
Eligibility Criteria for Education Loans
- education loan the loan are provided for only undergraduate programs, post graduate program, diploma courses, PHD with the time duration of 6 month or more, technical course, professional course and job oriented courses student are eligible for taking education loan.
- is applicant want education loan for undergraduate course then they should have to complete 12th standard and for postgraduate course a degree is required.
- for education loan applicants must be enrolled or secure admission in recognised institution, International College, University and government institute and professional institution.
Benefit of Education Loans
- in education loan bank provide loan financing up to 1 crore.
- in education loan repayment tender of loan is up to 15 years.
- education loan are available for the bot studies in India and abroad.
- in education loan government give the tax benefit for the 8 year on the interest paid.
- one best thing in the education loan is door step service for collecting required documents.
- for female student some bank offers conscious interest rate for female student.
Courses Cover Under Education Loans
- undergraduate degree
- postgraduate degree
- undergraduate diploma
- postgraduate diploma
- skill development courses
- vocational training courses
- programming courses
Important Document lists for Education Loans
- admission letter from the educational institute.
- ID proof
- age proof
- marksheet of previous education in school and college
- address to
- salary slip
- signature proof
- ITR with the income computation
- bank account detail
- Audited balance sheet
- passport size photographs
- appropriate visa for abroad studies
- recent bank statement
- completing the application form with a signature
How to apply for an Education Loans
through the official bank website, follow these steps
- Firstly you need to access the bank’s official website.
- then select the education loan product page.
- after that complete the loan form with your personal detail.
- after that enter all your documents.
- provide your academic and financial details to the bank.
- After that select option visit the bank to finalize the loan approval process.
How to apply Education loans offline
If you want to apply for education loan with online process then follow these steps
- Firstly visit your chosen bank branch.
- Go and ask for the bank officers for student loan application form.
- Fill the form very carefully with personal and academic or financial detail.
- after completing application form attach your other important document and summit it.
- after giving approval from bank then you receive formal agreement for loan.