Education in India is a costly affair. With many eminent educational institutions and universities hiking their fees and other charges, the cost of getting basic education is touching the sky. This could act as a constraint if an eligible student doesn’t have sufficient funds to finance their education. Education loan comes in the scenario as a rescuer as it offers the necessary funds which can be used to attain the quality education and pursue one’s dreams.
India is one market which has a huge demand for education loans. Many banks, financial institutions and NBFCs are providing education loans to meritorious students so that they can pursue an education in India or abroad. SBI Education Loan, Axis Bank Education Loan, Avanse Education Loan and HDFC Education loans are some popular and most sought after education loans in the country which are student friendly, offer competitive education loan interest rates and terms and conditions and have robust processing.
NEED OF EDUCATION LOANS
Many people opt for education loans over personal loans to fund their education. These loans offer several benefits and are highly versatile.
- Education loans take care of all the funds required to meet the expenses of education.
- A comprehensive education loan is free of inflation and other monetary issues. It offers timely help required to fund the education.
- Comprehensive education loan takes care of all aspects of expenses related to study a course.
- Comprehensive education loans are easily and widely available via LoansJagat.
FEATURES OF EDUCATION LOAN
The basic features of an education loan are:
- It is available for everyone and can be applied for anyone having a will to study.
- Education loans can be availed for pursuing graduation, vocational, post-graduation and certificate courses as well.
- Education loan amount varies between INR 10 lakhs to INR 15 lakhs for study within India. For abroad, banks offer loans up to INR 20 lakhs.
- The key factors determining the education loan amount include the annual income of a family of the applicant and the course applied for.
- Female students are given better education loan deals with lower interest rate and several other beneficial terms.
- Individuals from Economically weaker sections can avail the benefits of various government schemes like ‘Central Scheme to provide Interest subsidy (CSIS).
- There is no requirement of repaying the loan immediately. One can extend the repayment tenure to up to 5-7 years once the study course gets completed.
- No collateral or security is needed for loans below INR 4 lakhs.
CHOOSING THE BEST LENDER FOR EDUCATION LOAN
Education loan is provided by almost all banks and financial institutions. As per the RBI directives, education loan should be on the priority portal of banks. However, it is very important to choose the correct lender for financing your education. LoansJagat offers an excellent platform wherein the applicant can compare different lenders for the rate of interest and repayment terms and choose the one best suiting their needs. LoansJagat online portal is user-friendly and offers a seamless loan research experience so that the applicant can choose the correct option. The online education loan application process offered by LoansJagat is easy and convenient. With all-time assistance, one can get all the doubts cleared through LoansJagat portal and its award-winning customer service.
EDUCATIONAL LOANS RATE OF INTEREST
While applying for any loan, the applicant’s major point of concern is the rate of interest. Competitive rate of interest is what the applicants seek. The education loans in India are available at a rate of interest ranging between 12 to 16 percent varying on account of lending rate of banks along with several other factors. The base lending rate in India as per RBI’s directives is 9 % to 10 %. Private lenders and other financial institutions offer a variable rate of interest over their base lending rates. The final interest rate is negotiable and also depends on factors like applicants equation with the bank.
DOCUMENTS REQUIRED FOR EDUCATION LOAN
The lenders commonly seek the following documents for education loan:
- Duly filled and complete an application form.
- Identity proof
- Address proof
- Self-attested document of age proof
- Income Proof
- Passport sized photographs of the applicant, guarantor, etc.
- Copies of highest educational qualification (degree/post-graduation, etc.)
- Bank statement of last six months for an account held by applicant/parent/guarantor.
- Details of collateral security marked by a Government approved evaluator.
- Passport/Visa copy, airfare cost as established in documents for the courses outside India
Documents also vary from lender to lender. Submission of these documents along with the application form ensures you smooth processing and LoansJagat assigns a dedicated relationship officer to ensure one gets the documentation process right.
EDUCATION LOAN ELIGIBILITY CRITERIA
The applicant must abide by the following eligibility criteria to avail an education loan.
- The applicant must be an Indian resident.
- The applicant should be having admission in study course from a recognised institute or university.
- Non-Resident Indian( NRI) applicants must have a valid Indian passport.
- Graduation, Post-Graduation, Diploma programs, Technical courses, Management courses and other professional courses must be applied from any recognised university.
- Graduation, Post-Graduation, Certificate Degree courses taken abroad must be from famous colleges and educational institutions.
- The collateral backing the loan must be enforceable in India.
It is advisable to opt for an education loan instead of checking out all the savings on paying fees etc. The savings should be kept for meeting out other expenses like hostel charges, transportation and food, etc. which are usually not taken into consideration. The education loan only takes care of the fee structure of the course. All other expenses of the education are usually borne by the applicant itself. It is therefore imperative to grab a good education loan deal with the best interest rate offering so that you don’t have to pay a hefty amount back as interest. Consider all the above pointers and make an informed decision before buying yourself an education loan. Online portals like LoansJagat are your best bet if seeking to apply for education loan.