Education Loan in India
Education is an unavoidable thing in the modern society. In a typical globalised world, edution is becoming marketed and it has become one of the fertile businesses. Professional education has become very expensive in these days. But don’t worry; there are education loans for students.
Majority banks prefer to give loans for traditional courses than modern tablet courses. Management students will be specially cared by most banks. Banks may not give loans for the students, they are studying for bachelor and masters art courses.
Education loans can be classified as two. Loans for study in India and abroad education. Students can get Rs 4 lakhs without any security. A loan amount between Rs 4 lakhs and Rs 7.5 lakhs is possible with a third party agreement. The loan is available with a 5% margin. That means the loan seeker must find the 5% of the total loan amount. Third party guarantee can come from uncle, neighbor, friend etc. 15% will be the margin for abroad education loans. For example, there is a sanction for an education loan of Rs 15 lakhs, Rs 225000 (15%) must be contributed by the student. The interest of the loan may vary according to the situations. It should be ensured that the repayment starts only after 6 to 12 months of your job.
All students are expected to submit mark sheets of latest qualifying examinations, schedule of expenses for the specified course, admission scholarship paper, bank account statements for last six months and a small statement of assets and liabilities of the Co borrower and a proof of income. If the applicant is not an existing customer of the bank, he will have to submit identity and proof of residence.
Almost every bank in the country has a student loan scheme in some form. Both fixed and floating interest rates are offered in education loans. Most private and foreign banks offer only fixed rate of interest. Some banks charge interest on a monthly or yearly reducing status.
Eligibility for education loan
Student must be an Indian citizen
Applicant must have the admission in educational institution by entrance test or any selection process.
Most of the public sector banks, private banks and foreign banks are offering education loans in India. Government is taking very encouraging steps to promote education loans in India. A working group was formed by Indian bankers association to address the issues of education loans.