Education loan will aid financial help for students who are interested in going for higher education in India or abroad. Students are keen to study in reputed universities, and only having a scholarship will not help.
An education loan can be availed for the purpose of graduation, vocational courses, post-graduation, and for certificate courses.
The loan amount varies with the bank and eligibility of the student. Students can avail up to a maximum of Rs 15 lakhs. For students looking to study abroad, the amount can be up to Rs 20 lakhs.
What is the eligibility to apply for education loan?
Any individuals who is interested in studying can apply for education loan. Here are few points you need to consider before applying.
- The loan amount will depend on the income proof and on your repayment capacity.
- The bank will also consider the reputation of the University
- The education loan can be rejected if the university has poor or nil placement percentage
- Some banks may not lend for vocational courses
- In case of fake education documents, bank has right to reject the loan
How to apply for education loan in India?
Before applying students should check bank eligibility criteria to apply for the particular course and university. It is advised to visit bank and get the checklist before deciding the right bank for you.
Decide the bank based on the interest rate, admission procedure, moratorium period, etc.
Once you receive your admission letter, approach a bank with the list of documents, admission letter, and co-applicant. Keep the collateral ready if the amount is higher than Rs 7.5 lakhs. If the loan amount is between Rs 4 lakh to 7.5 lakh, the guarantor is required.
Your loan amount should include tuition fee, hostel fee, travel expenses, caution money, study tours and project work.
Some banks may charge processing fee even for education loan also. Once you submit the right documents, the process may take some time as the bank will verify the same.
Once the loan is sanctioned, the bank will pay the required amount directly to the university and remaining amount to your account for your expenses for that quarter.
Note that the bank will disburse the amount in installments.
Don't be surprised if the amount received is less as it will be disbursed in Indian currency and it will completely depend on rate fluctuation.