What is Education Loan?: Students who are passionate about their education but economically backward can avail the support to study & fulfill their dreams with the help of education loans.
education
loan
What Is Education Loan?
is
an
outstanding
scheme
that
supports
passionate
students
to
complete
their
Domestic Education Loan: This loan is specifically for those students who want to study their course in India. If the applicant is having the Indian admission form then only he/she is eligible to apply for the education loan under this type.
Overseas Education Loan or Study Abroad Education Loan: Students who want to pursue their desired course in a foreign institution, should apply for an education loan under this type. They can be offered airfare, accommodation, tuition fee, and other benefits to study abroad after fulfilling all the eligibility criteria.
Check the guide on which bank gives education loans without collateral for abroad and gain some knowledge.
academic
Third-Party Guarantee: A bank employee or a home bank should provide the guarantee letter for sanctioning the education loan to the student.
Loan Against Property, Deposits, and Securities: To get a loan for pursuing your studies, you should provide a guarantee by agricultural land, residential land, flat, house, and others, fixed deposit certificates, recurring deposits, gold deposits, bonds, debentures, and equity shares.
careers
Undergraduate (UG) Loans: Undergraduate Loans are another type of education loan where students get financial help to pursue their UG degrees.
Postgraduate (PG) Loans: Students who got finished their UG Courses and desired to pursue their postgraduate program in India can apply for a study under this type.
Career Development Loans: Applicants who are working hard in corporate jobs, desired to level up their skills, and reach the top in their career can take help from this loan. With this loan type, they can pause their job and continue to pick up professional courses and training for better employment opportunities.
.
availing
Academic Expenses
- Course fees or tuition fees
- Registration fees
- Counselling fees
- Capitation charges
- Exam fees
- Study visit & education tour fees
- Lab fees
- Library fees
Non-Academic Expenses
- Accommodation Charges
- Food expenses
- Travelling & Commute cost
- Student insurance
- Refundable caution money
- Project expenses
- Fixed/student welfare contribution
- Laptop, 2-wheeler, transport pass, wheelchair expenses (if required)
- Especially for aboard studies, In-flight expenses, outward remittances
- Fees for various entrance exams like SAT Exams, LSATS, GRE, GMAT, TOEFL, MCAT, etc.
student
loans
- Nursery To Class 12 Classes are also included.
- UGC, IMC, AICTE, government, AICTE, AIBMS or CMR universities or colleges offered professional/technical/diploma graduation and post-graduation courses.
- Regular degree or diploma courses accepted by the Director General of Civil Aviation, Shipping, or other regulatory authority.
- IIM, IIT, IISc, XLRI, NIFT, NID, ICWA, CA, CFA, and other autonomous institutions conducted courses like regular degrees or diplomas.
- Skill development courses
- Employment courses for graduation, post-graduation, or diploma such as MBA/MCA/MS, studies conducted by the Chartered Institute of Management Accountants (CIMA) – London or Certified Public Accountant (CPA) – USA.
Courses for Abroad
- Job-oriented courses (professional/technical) for Graduation/Post Graduation/Diploma like MBA/MCA/MS, etc. delivered by reputed organizations.
- CIMA and CPA conducted courses.
means
getting
- Applicants should be Indian Residents.
- Get an Admission application form from the university in India or Abroad, where you want to study your dream course.
- If you need a loan for the undergraduate program, you should complete a 10+2 education with a pass percentage.
- For postgraduate courses, one must finish an undergraduate course.
- Candidates’ age should fall between 18 to 35 years at that time.
- Those who want to pursue the full-time course must have a co-applicant and have a normal income source.
- Should hold all the below-mentioned required documents.
financial
help
- Duly filled in education loan application form with signed and affixed photographs
- Recently completed education certificate or 10th/12th exam mark sheets copies
- Aadhaar Card and Pan Card of the student and Parent/ Guardian
- Two photographs
- Statement of Course expenses/cost of study
Identity proof:
- Aadhaar Card
- Copy of Voter ID
- Driving Licence
- Passport
Age proof:
- Passport
- Voter ID
- Copy of Aadhaar Card
- Driving Licence
Residence proof:
- Bank statement of 6 months of the student or co-borrower
- Copy of Ration card
- Rental agreement
- Guarantor
- Electricity Bill
- Gas Book
- Telcom Bill
to
pursue
1st: Offline Application Process
- First choose the lender that you want to apply for a loan.
- If you choose a bank, get the types of education loan details from the nearest branch. Choose a suitable loan type and fill out the application form. Along with that, know the documents required for submission and complete the process in person.
- If you choose another lender, discuss the details by visiting their branch, or else call the lender and discuss the loan types, terms, and application process.
2nd: Online Application Process
- One of the most convenient methods to apply for an education loan is by applying online. You can apply to study loan online in two ways.
- Initially, the simple way is to download the application form online from valid sources or at the official website.
- Fill out the loam form and submit it by attaching the other required papers too.
- Second method is to apply by providing the requested information and then the lender will directly come to you for discussing the loan terms before applying it.
You can proceed with any of the application processes to get an education loan for studying in India or Abroad. For detailed information on How to Apply for Education Loan for Abroad Studies , check the link given here.
a
The table of information provided here will help you choose the best & suitable education loan and complete your studies without hassle. Are you excited to know Which Bank Has Lowest Interest Rate on Education Loan ? Click this available link.
| Bank Names | Interest Rates (% p.a.) | Processing Fees |
| SBI | 8.20% onwards |
|
| Central Bank of India | 8.10% to 11.50% | Nil for studies in India |
| PNB (Punjab National Bank) | 9.25% onwards | Contact the bank |
| Canara Bank | 8.60% onwards | 0.50% of the loan amount up to Rs.10,000 (for collateral security coverage of 100% and above) |
| IDFC FIRST Bank | 9% onwards | Contact the bank |
| IDBI Bank | 8.50% onwards | 1% of the loan amount (Maximum: Rs.5,000) |
| Bank of Baroda | 9.15% onwards | No processing charges up to Rs.7.50 lakh 1% of the loan amount up to Rs.10,000 |
| Bank of India | 10.95% onwards | No processing fee for studies in India |
| ICICI Bank | 9.85% onwards | Up to 2% + GST |
| Bank of Maharashtra | 9.45% to 11.30% | Contact the bank |
| Axis Bank | 13.70% to 15.20% | 2.00% of the loan plus GST |
| HDFC Bank | Preferential rates as per the college or the university | As per the criteria of the bank |
| Kotak Mahindra Bank | Up to 16% | Nil |
| Federal Bank | 12.55% onwards | Contact the bank |
Remember: Above tabulated information on interest rates are functional as of March 2023 and can be altered according to the new rules and regulations of the respective bank.
degree
at
- The benefits provided by Section 80E of the Income Tax Act are tax deductions on the amount of interest paid toward education loans.
- All types of study loans are eligible under this section but make sure you avail of the loan from a bank or a registered financial institution.
- You won’t see any limitation on the deducted interest rate which is the best aspect of this tax benefit.
- By submitting Form 16B or Form 16C along with ITR, you can easily claim the IT benefit in which you have paid the principal amount and interest component.
- Applicants can avail of this benefit for 8 years from the start of loan repayment day or until the interest component is paid off, whichever arrives sooner.
a
reputed
college
- Avail upto Rs.1 crore as loan amount.
- Loan repayment period upto 15 years.
- Required documents can be collected easily by their at-doorstep service.
- Banks’ employee kids can relish preferential rates at various banks.
- Some loaners will provide loan disbursal before applying for a Visa.
- You can enjoy a moratorium tenure of up to 1 year after completing the course. Also, it helps to avoid paying the loan amount during this period.
- To female students, banks are provided concessionary interest rates.
or
- What are the courses covered under an education loan?
university
- Undergraduate degrees
- Undergraduate diplomas
- Postgraduate degrees
- Postgraduate diplomas
- Vocational training courses
- Doctoral courses
- Skill development courses
- What do the loaners aim to approve the study loan?
.
- Selected courses and institute
- The required amount to study the chosen course
- Your recent or past academic performance
- Family property
- Annual revenue
- Repayment ability of your family
- Are NRIs eligible for education loans from banks in India?
government-provided
- Does Education Loans from NBFCs & FinTech Companies Qualify for Income Tax Deductions?
loans
- Who can avail and apply for an education loan?
come
- What is the moratorium period for education loans?
The period of your course duration plus 6-12 months is the answer to what is moratorium period in education loan . For a better understanding of the moratorium period click on this link.
- What are the four major types of educational loans?
in
low-interest
Know you know complete information about what is education loan and How to get education loan from the government and banks. If you have other queries on the same like How to Get Education Loan After 12th , Is Cibil Score required for Education loan , etc. then visit our website LearnCBSE.online and gather every single data about student loan/study loan/education loan.
