Saturday, September 14, 2013

Education Loan - How to Get it for Study Abroad and Study in India for All Courses

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This post will guide you for how to get the education loan, which is the best bank to get the education loan, repayment conditions, Interest Rate of Loan for education in Aboard study and much more about education loan in india.

Nowadays, there are many courses are available to study, also study become business and the reason, the education cost are going high day by day. Beside many institutes and collages are available, still passing ratio are also going high, building construction (of collage) and other things related to the collage/institutes are going high, These are the main reasons why education cost, Fees are increasing day by day.

Earlier, you can study whole engineering, MBA,MCA in less then 1 lac but now the scenario has been changed. You need at lest 5-6 lac to study above mentioned courses in India. You must note that i have not yet mentioned fees structure of Medical Courses. 
Education Loan - How to Get it for Study Abroad and Study in India for All Courses

What Documents are needed to apply for the Education Loan?

Before Applying to the education loan, you must observe the education loan rate in different banks, you can get it by surfing the official websites of all banks in india. Many co-operative banks are giving education loan on low rate then nationalized bank. I recommended you to SBI, i have personally taken loan from SBI, Fast and easy. So, after choosing the bank you need below mentioned documents to apply for Education loan in Bank

An Admission Latter from the Institute or collage where you taken admission. Yes, you need to take admission before applying the education loan. You can get it easily from your education institute admin office by requesting.
  • Fee Structure :- You also need to add the full education fee structure in the file of education loan. In this fee structure, tuition fee, hostel fee, books cost etc are included. (library fees, in case it is higher). This can also be easily available by requesting to your admin office.
  • Mark sheets :- your last educational marksheet, (if you are applying for master course, then your bechlore's marksheet) along with 10th and 12th education marksheets.
  • Two latest photograph of student (Applicant) and co-applicant (your father/mother/brother).
  • Collage ID Card :- Proof that you are already taken the admission in the institute.
  • Last 2 year of Form 16 and Income Tax Return of your father/mother/Brother/Guardian (who will provide you security for the loan, your Guarantor).
  • PAN Card of the student and the Parent/ Guardian.
  • Brief statement of assets and liabilities, of the Co-borrower.
  • Proof of Income (if you doing Job, then include last 3 month of salary slip with your office icard).

Note:- These means you need to pay the first installment of your education FEES, as after paying the 1st installment of fees, you will get admission and then also you can apply for the Education loan.
You will get the application form for education loan after submitting this much documents, fill the form and apply. The documents above mentioned can be vary from bank to bank (i.e many bank can ask you for much more documents). These are basic documents that needed for application of Education loan.
 

Which expense are covered in Education loan?
  • Tuition Fee (total fees for all semester of your course)
  • Hostel Fee
  • Transportation Fees (if you request).
  • Stationary cost
  • Computer/laptop (if you needed).
  • Bike/activa (for transportation)
  • Flight Ticket cost (in case you are applying for Study in Abroad).

What are security shown in Education loan form?
First of all, if your loan amount is less then 4 lakh then this section is not so much important for you. In case they ask you to show security, then you can show the security mentioned below:-
  1. Share/debentures.
  2. Bank Deposits.
  3. House/shop property.
  4. Office (in case of business).
  5. Gold/silver.
  6. Vehicles.
Repayment Conditions and installments for Education loan
 
Education loan are flexible and have many options for repayment of the loan.you can say till you finish your education and get the job, you do not need to worry about the repayments.
  • You can start your repayments after completion of course and six month (for job security).
  • You can start repayment after first first payment of bank loan.
  • You can only start paying loan interest for the education loan.
  • You can get 5-7 years tenure to pay the education loan.
  • In case of amount is big, then 10 years also allowed, you can get it by requesting bank.
Note :- Paying installment after completion of course and getting job is not sure, if you do not get job within six month, you HAVE to start repayments.
 
FAQs related to Education loan
 

1. What are the education loan interest rate?
 

Currently, 12.75 to 14.5% are the interest rate for education loan, education loan rate vary from bank to bank.
2.Can Female applicants get rebate in education loan?

Yes, SBI and Punjab national banks are giving 0.50% rate of interest rebate for female applicants. For other banks, you must inqury to the nearest bank branch.
 

3.What is the maximum amount that can be availed under educational loans?
 

There is no mention of maximum loan amount, but keep one thing in mind, the higher the amount of loan, easier to get it. As bank are not interested to give small amount for the education loan.
 

Still you can say,
  • For studies in India: Rs. 10 lacs
  • If the amount exceeds Rs. 7.5 lacs, then security shall be required.
  • For Abroad: 20 lacs.
4. Dose my current Result effect for my next payment of Loan?
 

YES, You must have to give consistent performance in your course, for which you have taken the admission. ATKT, Fail and Detain Students finds difficulty for getting the next payment of Education loan.

5. Any prepayment charges in education loan?
 

No, there is no prepayment charges for the education loan. you can even request for the part payment from bank.


6. Which is best bank to get education loan?


As mentioned above, State bank of India is my personal choice, as they given me easy and fast loan. Still you can look for any other bank, as loan interest rates are keep changing. 

7. Can apply online for Education loan?

Yes, you can always apply for education loan via respected official websites of banks. But to get fast answer, i prefer offline application submission.

8. Bank has rejected my application, what to do?

You can always apply for the other bank. If nationalize bank do not accept your application you can apply to other international banks or co-operative bank (i.e HDFC, Kalupur Co-operative Bank).

9. Quick Links for apply online for Education Loan.
  1. SBI :- Click here to apply online.
  2. PNB :- Click here to apply online.
  3. Axis :- Click here to apply online.
  4. BOB :- Click here to apply online. 
  5. HDFC :- Click here to apply online.

That's it, you can always ask me for any other question or query on the below comment box, Thank you and all the best! :)

Written By :- Vicky Sadhu!

4 comments:

  1. I highly recommend taking education loan.
    Also like your statement for education loan stating. An Admission Latter from the Institute or collage where you taken admission. Yes, you need to take admission before applying the education loan. You can get it easily from your education institute admin office by requesting. Student loan is a good idea and will stick to this point.

    ReplyDelete
    Replies
    1. Deepak, Yes i also recommended to take education loan and study stress free. As i personally taken education loan form SBI, and i finished my course without fees, all education fees are sponsored by SBI and now i will repayment in next 3-4 years easily. Only thing i don't like is we are in the country where auto loans are available at 8% where for education you have to pay 12.35%+ interest rate.

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  2. I had a drop in my graduation will i still be eligible to education loan below 4lac..or the loan will most likely get rejected.Even if i get into a good university for an mba.

    ReplyDelete
    Replies
    1. Ofcours yes, nothing with dropout and fail, you just need to have admission in good collage. :)

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