Yet, some may suffer shortage of funds. An education loan thus, plays a vital role in funding the shortfall.
Students can avail an education loan for pursuing quality higher education in an institution of repute. However, prior to approaching the bank for availing an education loan, it is vital for students to understand the loan terms and conditions as well as procedure for applying for such loans. They should compare the interest rates and other important things before they zero in on a bank for an education loan. Evaluating the repayment ability is equally important for the applicant. An education loan can be repaid in five to seven years.
These types of education loans that are meant for applicants who plan to study abroad. Typically, every lender will have a list of institutions that they support. In case the applicant has already secured a seat in any of these listed institutions, then the loan will be approved.
Domestic loans are for those, who wish to pursue a higher education in India. Every lender will have eligibility criteria for education institutes in India as well.Here too, the loan will be approved in case the applicant has secured admission in an institute which meets the requirements of the bank.
Undergraduate loans are those types of education loans that provide financial support to pursue undergraduate degree programs.
Graduate or professional loans are those kind of loans which are tailored for applicants who wish to pursue post-graduation or any other related professional courses.
Career loans are those types of education loans which help applicants pursue career-oriented programs as well as certification courses.
Education loan online in India can be applied in the below steps, though it may vary from one bank to another.
Step 1: Application Form: Fill in the application form with details pertaining to your academics as well as your contact details. It is vital to fill in all the correct and accurate information.
Step 2: Personal Discussion: Once the form filling of the applicant is done, there would be a personal round held wherein he/she may be asked several question related to the course opted for, academic performance, details on the educational institute etc. The student applicants should be clear and lucid about the selection of course and well as its future potential to generate income. There are certain banks that consider academic record vital whereas some banks might pay a lesser attention.
Step 3: Document submission: You need to submit the documents related to the admissions even before applying for the education loan application. The enrollment of the student will be done by the bank from the concerned institute. At times even collateral security would be required such as property papers for mortgaging in case the loan amount is above Rs.4 lakhs
Step 4: Loan Approval or denial: n case of application of the education loan, a co-guarantor is compulsory. This guarantor may be your guardians or your parents. The guarantor’s CIBIL score would be verified by the bank for loan approval. Your loan might be denied or approved once the loan process is completed.
Step 5: Borrower’s signature on a Promissory Note: While the parents/guardians are guarantors, the student is the actual borrower of the loan. Once the loan is sanctioned, the student has to sign a promissory note to the bank.
Step 6: Loan disbursal: On completion of the loan formalities, the loan disbursal would be done by the bank. The bank may disburse the college/institute fee directly to the concerned institute.
Education loan EMI calculator is a tool which is simple and it helps in saving your time as well as quite scalable. The below mentioned inputs would be required to use the Education loan EMI Calculator:
Mentioned below are the features of the Education loan:
Mentioned below is the eligibility criteria for Education loans in India.
Mentioned below is the list of documentation that is needed for application of Education loan:
Different lenders will offer different modes of repayment options for repaying the loan. Mentioned below are some of the loan repayment options for education loan:
To apply for education loan in India, you need to fulfil the below categories:
The lenders would consider the below mentioned factors for loan approval:
Well, the bank will start deducting the EMIs only post the completion of your course. The duration may however differ from one bank to another.
Yes, courses such school education, professional coursed, graduation courses, non-graduation courses as well as diploma or degree courses which are recognized by institutions, are eligible for education loan
Following expenses would be covered by education loan:
Yes, you can avail tax benefits under Section 80E of the Income Tax Act, 1961.
Education loan offers coverage for the basic fees as well as other related expenses.
• Tuition fees & Course fees
• Caution deposit
• Travel expenses as well as passage money for studying abroad
• Any other expenses that are needed for completion of course such as study tours thesis or project related costs.
• Expenses related to books, equipment’s and other instruments.
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