What is education loan and how to get it | Detailed information about education loans

What is education loan and how to get it | Detailed information about education loans

What is Education Loan?

Education loan is the money taken as a loan for higher education related expenses in the country or abroad after high school, it includes course fees, air fare, accommodation, living, other expenses.

What are the types of education loans?

Education loans are of different types based on location such as loans for diploma and certificate courses. Loans for study abroad for skill based courses.

But basically Education Loans are divided into two categories irrespective of the course:

The first one is Domestic Education Loan or Swadesh Shiksha Ran

Students who want to study in any educational institution in India can apply for this type of loan if the applicant is enrolled in the Indian educational institution and fulfills all the conditions of the lender.

The second is Overseas Education Loan or Foreign Education Loan

Loans for educational courses from any foreign institution outside the geographical limits of the country.

Besides, there are undergraduate, postgraduate, career development loans based on the course.

what-is-education-loan-and-how-to-get

What are the list of expenses under education loan or education loan?

Courses in educational institutions are free.

Examination, libary, laboratory free Airfare for study abroad.

Premiums if the student borrower requires insurance.

Accommodation is free.

Purchase of books, tools, machinery, uniforms.

If a laptop or computer is required to complete the course.

Other expenses necessary for the course like study tour/project work/thesis etc

What are the eligibility requirements for getting an education loan?

Must be an Indian citizen.

Admission should be in any approved university, and educational institution in India.

10+2 for undergraduate courses and 10+2 for postgraduate courses should be completed.

Age should be between 16 to 35 years.

Which banks give education loans and how much money do they give this loan?

Both public and private banks provide education loans. The education amount is different for each bank. This loan is given up to 1 crore in case of study abroad and up to 50 lakh in case of study at home.

But the biggest advantage of education loan is that after the completion of the specified course of higher education, the EMI of the loan starts paying which includes both interest and principal. The bank decides the period after which the EMI should start or for how long the EMI should be paid.

Bank of Baroda offers education loans up to Rs 80 lakhs and their repayment tenure is 10 to 15 years.

Union Bank of India offers education loans ranging from Tk 20 to Tk 30 lakh and no security is required for loans up to Tk 4 lakh. Repayment period up to 15 years.

Central Bank of India offers student loans up to Rs 10 lakh and no security is required up to Rs 4 lakh. The repayment period for loans up to Rs 7.5 lakh is 10 years and for loans above Rs 7.5 lakh the repayment period is 15 years.

Bank of India provides student loans of up to 10 lakh rupees for studying at home and up to 20 lakh rupees for studying abroad. Repayment of the loan should start one year after the completion of the course which can last up to a maximum of 15 years.

State Bank of India will be the parent or guardian co-borrower for loans up to Rs 7.5 lakhs and no further security is required. The repayment period is 15 years. Apply State Bank Education Loan Online.

Punjab National Bank does not require any security for education loans up to Rs 7.5 Lakhs. Parents will be joint borrowers. The loan repayment period is maximum 15 years after the course period plus one year.

IDBI Bank provides education loans up to Rs 20 lakh for studies within India and up to Rs 30 lakh for studies outside the geographical limits of India. No security is required for loans up to Rs.4 lakh, parents will be co-borrowers.

Bank of Canada offers education loans for completing vocational/certificate/diploma courses up to a maximum of Rs 7.5 lakhs. No security is required for loans up to Rs.4 lakh, parents will be co-borrowers.

Axis Bank provides education loans from a minimum of 50 thousand to a maximum of 40 lakh rupees in the field of education within the country. You can apply online for Axis Bank education loan. Apply Axis Bank Education Loan Online

ICICI Bank offers educational loans up to Rs 50 lakh for domestic studies and up to Rs 1 crore for studying abroad. You can apply online for ICICI Bank Education Loan. ICICI Education Loan Online.

Banks usually provide up to 90 percent of the tuition fees as loans. Student interest rates are discounted.

What is the interest rate charged by any bank on education loan?

Bank of Baroda 6.75

Union Bank of India 6.80

Central Bank of India 6.85

Bank of India 7.5

State Bank of India 6.85

Punjab National Bank 6.90

IDBI Bank 6.90

Bank of Canada 6.90

Access Bank 9.70

ICICI 10.50

What documents are required to get an education loan?

KYC documents

Marksheet Ten, Twelve, Graduation, and Entrance Exam

Admission letter

Age Proof (Birth Certificate/Passport/PAN Card/Driving License)

Address Proof (Aadhaar Card/Passport/Latest Electricity Bill/Latest Telephone Bill/Bank Account Statement)

Photo Identification Proof (Aadhaar Card/Voter ID/Passport/Driving License)

Passport size photograph of applicant and co-applicant

Full details of course free

KYC & Income Proof of co-applicant

How to apply for education loans?

To get education loan you can go to your preferred bank and know about their loan process there also you can apply online after which loan application has to be submitted along with required documents. Then the bank will verify them and evaluate the type of education you want to get the loan for and start the loan process.

Also know details about other bank loans.

What is education loan or education loan?

Education loan is the money taken as a loan for the expenses related to higher education in the country or abroad after high school.

How many types of education loans are there?

There are basically two types: The first is Domestic Education Loan or Swadesh Shiksha Kran. And the second is overseas education loan or foreign education loan