Education Loan


Education loans are usually extended to resident Indians, but if a nonresident Indian wishes to apply, then he or she must have a valid Indian passport as well. The loan can only be applied for if the applicant has got a confirmation of acceptance from the particular institution whose course the applicant wishes to pursue. Most diploma and post-graduation programs in India are eligible for education loans, provided they are in the field of technical studies, management or other professional areas and are offered by recognized universities. Specific courses offered by foreign universities are also eligible for education loans from most banks. The applicant should be able to provide suitable collateral for the loan.

Name of Bank/Financial Institution Education loan schemes Amount Interest Rate Repayment Tenure
State Bank of India SBI Student loan scheme Up to Rs. 7.5 lakhs 10% 5-7 years
Above Rs. 7.5 lakhs 10.75%
SBI Scholar loan scheme Up to RS. 20 lakhs 8.40%- 10%
SBI Global Ed-vantage schemeMore than Rs. 20 lakhs up to Rs. 1.5 crores 10.5%
Axis Bank Axis Bank education loan Rs. 50,000 to Rs. 75 lakhs 10.5% -12.5% Up to 7 years
Punjab National Bank PNB Saraswati Up to Rs. 7.50 lakhs 10.35% Up to 15 years
Above Rs. 7.50 lakhs 10.6%
PNB Prathiba Up to Rs. 7.50 lakhs 8.85%-8.95%
Above Rs. 7.50 lakhs
PNB Udaan Up to Rs. 7.50 lakhs 10.35%
Above Rs. 7.50 lakhs 10.6%
PNB Kaushal Depends on the loan applicant 8.45%
8.85%
HDFC Bank HDFC Credila education loan Minimum Rs. 50,000 , no maximum limit Depends on the academic and financial track record of individual applicant Up to 12 years
Avanse Avanse Education loan Minimum Rs. 50,000 , no maximum limit Depends on the academic and financial track record of individual applicant 1-10 years

Why Education Loans Are Needed?

All parents dream of providing the best possible education to their children so that their children can realize their own dreams in turn. The rising costs of education have made that dream more and more difficult to fulfil. This is the reason several banks have come up with education loans so that education is not hampered for lack of funds.

How Education Loans Are Beneficial?

There are several benefits of going in for an education loan. Parents needn’t spend their lives accumulating the money for the course their children are interested in. The child can pay back the loan when he or she starts earning money after completing the cost. Colleges today charge much more than only the tuition fees, and a loan can help cover all these other expenses too. The repayment doesn’t start immediately and the student can also opt for stretching out the repayments over several years. Whether the child wishes to pursue education in the country or outside, most banks offer education loans for domestic courses as well as courses outside India.

What Are The Eligibility Criteria?

Let us look at some of characteristics that define education loan eligibility. The student who is applying for the loan should be a resident of India and must have already secured admission in the course for which he is applying. In case a nonresident Indian is applying for an education loan, he or she must also hold a valid Indian passport. The collateral provided to bank must be legally valid and enforceable in India. Some banks might offer education loan without collateral in case the guarantor has a bigger income slab or if the rate of interest charged is higher, but usually it is provided only if the applicant has a brilliant academic record.

What Documents Are Needed?

There are certain documents required for education loan applications. Apart from the mandatory KYC (know your customer) documents of applicant and guarantor, the details of the course and the confirmation of the offer must also be provided. If the course is outside India, the passport and visa also would be needed, and the student would need to provide some evidence of ability to bear airfare.

How Are Interest Rates Arrived At?

One of the important education loan details that an applicant needs to assess is the education loan interest rate. Most banks offer a floating rate of interest (which would increase or decrease in line with change in prime lending rate) ranging from 12% to 17% on a monthly reducing balance arrangement.

How Can One Finance Help You?

Most applicants and their parents get confused when faced with the question of begin the quest for an education loan. We will help you navigate through the education loan requirements, so that you can make a convenient selection from among the available options. We have tie ups with all the major banks in India offering education loans. Your child can concentrate on studies while you don’t need to worry about funds, when you take our help for education loans. Every child has a right to education, and we make it our duty to help you ensure that this right is fulfilled.

Why Education Loans Are Needed?

All parents dream of providing the best possible education to their children so that their children can realize their own dreams in turn. The rising costs of education have made that dream more and more difficult to fulfil. This is the reason several banks have come up with education loans so that education is not hampered for lack of funds.

How Education Loans Are Beneficial?

There are several benefits of going in for an education loan. Parents needn’t spend their lives accumulating the money for the course their children are interested in. The child can pay back the loan when he or she starts earning money after completing the cost. Colleges today charge much more than only the tuition fees, and a loan can help cover all these other expenses too. The repayment doesn’t start immediately and the student can also opt for stretching out the repayments over several years. Whether the child wishes to pursue education in the country or outside, most banks offer education loans for domestic courses as well as courses outside India.

What Are The Eligibility Criteria?

Let us look at some of characteristics that define education loan eligibility. The student who is applying for the loan should be a resident of India and must have already secured admission in the course for which he is applying. In case a nonresident Indian is applying for an education loan, he or she must also hold a valid Indian passport. The collateral provided to bank must be legally valid and enforceable in India. Some banks might offer education loan without collateral in case the guarantor has a bigger income slab or if the rate of interest charged is higher, but usually it is provided only if the applicant has a brilliant academic record.

What Documents Are Needed?

There are certain documents required for education loan applications. Apart from the mandatory KYC (know your customer) documents of applicant and guarantor, the details of the course and the confirmation of the offer must also be provided. If the course is outside India, the passport and visa also would be needed, and the student would need to provide some evidence of ability to bear airfare.

How Are Interest Rates Arrived At?

One of the important education loan details that an applicant needs to assess is the education loan interest rate. Most banks offer a floating rate of interest (which would increase or decrease in line with change in prime lending rate) ranging from 12% to 17% on a monthly reducing balance arrangement.

How Can One Finance Help You?

Most applicants and their parents get confused when faced with the question of begin the quest for an education loan. We will help you navigate through the education loan requirements, so that you can make a convenient selection from among the available options. We have tie ups with all the major banks in India offering education loans. Your child can concentrate on studies while you don’t need to worry about funds, when you take our help for education loans. Every child has a right to education, and we make it our duty to help you ensure that this right is fulfilled.

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22 Mar 18