Table of Contents Why education loan is required?Education Loan for Abroad studies:-Education Loan in India:Eligibility criteria to apply for the education loan:-Punjab National bank –Education Loan:-State Bank of India –Educational Loan:–AXIS Bank-Education Loan:-Bank of Baroda –Education Loan:-HDFC Bank-Educational Loan:-Tata Capital-Educational Loan:- IDBI Bank -Educational Loan:-Canara Bank-Educational Loan:-ICICI Bank-Educational Loan:-For Which Courses Banks provide Loans in India:- List of Expenses Covered in Education LoanList of Documents Required for Education Loan FAQs:-Share this articleWhy education loan is required? A student loan can be a great way to cover the cost of an education when family resources are insufficient. Banks and other financial organizations can be approached to provide a loan, which can be used to pay for all or part of educational expenses.Education Loan for Abroad studies:- Studying abroad can be a life-changing decision, however, that does not come easy. For students from low-income families, however, this goal can be out of reach.Those who want to pursue higher studies abroad, but find it difficult to arrange for funds, now have the option to make arrangements for funding their education. In this article, we will cover every detail related to education loans from the top 10 different banks for studying abroad and in India.Education Loan in India:Some of the Leading Indian banks offer education loans to help students achieve their academic objectives. A school loan with a payback duration of up to 20 years at 7% per year in interest is available. Both in the country and out of the country higher education can benefit from education loans.Eligibility criteria to apply for the education loan:-The first and foremost thing is to check, whether you are eligible to apply for an education loan or not from the bank. Below we provide the general terms and conditions that are usually followed by any bank in the process of granting an education loan.Kindly note that individual banks could have their eligibility guidelines which would have to be adhered to when applying to that particular bank.The student must be an Indian national citizen.If the applicant is under 18 years old, then his or her parents will have to take out the loan.The student must have a strong academic record.The student must have been accepted to a reputable overseas university institution or college.Since banks favour courses that are job oriented, the applicants chosen courses must be technical or professional.Underwriting norms are the standards set out by loan providers to guarantee that only safe and secure loans are made available to the student.The banks determine whether or not to provide a person with a study loan for overseas study, as well as how much money the firm is prepared to loan and at what rate of interest.Punjab National bank –Education Loan:-The maximum loan amount is Need based.Maximum loan tenure is 15 years. Nil Collateral up to 7.5Lakh.Margin –Nil up to Rs. 4 LakhLoans offer to Indian residents and OCIs/PIOs students born abroad to Indian parents and who want to pursue studies in India.No securities required up to Rs. 7.50 Lakhs.The moratorium period is a course period and 1 year. SBI-STUDENT EDUCATIONAL LOANState Bank of India –Educational Loan:–No collateral or third-party guarantee is required up to Rs. 7.5Lakhs.Repayment is to be done one year after course completion.Repayment up to 15 years post the course completion+12 monthsThere is a Zero processing fees for loans up to Rs. 20 Lakhs.A second loan can be availed for completing higher studies. Axis bank Student Educational LoanAXIS Bank-Education Loan:-Minimum loan amount Rs. 50,000Maximum Loan Tenure is 20 yearsMargin is NIL up to Rs. 4 LakhsSecure a loan before admission based on profile.The loan will be disbursed within 15 days from the date the bank receives your complete application.Unsecured loans up to Rs. 20 Lakh for working professionals.Bank of Baroda –Education Loan:-The maximum Loan amount is Rs.150 LakhsNo security up to Rs. 7.5 LakhsNo margin on loans up to Rs. 4 lakhNo processing feesNo documention charges HDFC BANK STUDENT EDUCATION LOANHDFC Bank-Educational Loan:-The maximum Loan amount is Rs. 1.5 CroreThe loan repayment to the student tenure is 15 Years.Easy documentation processNo collateral required up to Rs. 7.5 LakhTax benefits can be availed on educational loanThe loan amount will be directly disbursed to the institution based on its fee structure.Tata Capital-Educational Loan:-The maximum Loan amount is Rs. 30 LakhsColleteral NIL up to Rs. 4 LacsThe rate of Interest starts from 10.99% in this bank.The processing amount will be 2.75% of the loan amountChoose three EMI plans at your convenience.Minimum document and quick approval of the loan. IDBI BANK STUDENT EDUCATIONAL LOAN IDBI Bank -Educational Loan:- IDBI Bank is one of the leading providers of educational loans in India.The bank offers loans of up to Rs 20 lakhs for education within India and up to Rs 30 lakhs for education abroad.These loans cover tuition fees, examination fees, travel expenses, course materials, laboratory fees, library fees, and other related expenses.To be eligible for an education loan, you must be enrolled in one of the diplomas, CPA, CIMA, graduate, or postgraduate courses in a reputable institution.Like BOB, IDBI Bank requires a third-party guarantee if your education loan is between Rs 4 lakhs and Rs 7.5 lakhs.If your education loan is more than Rs 7.5 lakhs, the bank requests that you provide a co-borrower and tangible collateral security.However, if your loan is less than Rs 4 lakhs, the bank will not take any collateral security. Canara Bank-Educational Loan:- Canara Bank offers an education loan with a maximum of Rs. 40 lakhs for premier institutions and up to Rs. 20 lakhs for other institutions.No collateral security is required for loans up to Rs. 4 lakhs, and a third-party guarantee is needed for loans from Rs. 4 lakhs to Rs. 7.5 lakhs.Loans over Rs. 7.5 lakhs require a co-borrower and tangible collateral security.The repayment period is up to 10 years for loans up to Rs. 7.5 lakhs, and up to 15 years for loans above Rs. 7.5 lakhs. Female students are eligible for a 0.5% discount on the interest rate. ICICI BANK STUDENT EDUCATIONAL LOANICICI Bank-Educational Loan:- ICICI Bank is another great education loan provider in India. It offers Rs. 50 lakh for Indian education and Rs. 1 crore for international education.There is no collateral security for education loans of up to Rs. 20 lakh if you are applying for undergraduate courses and up to Rs. 40 lacks if you are applying for post-graduate courses.No loan margin is required if your education loan is up to Rs. 20 lacks. The ICICI Bank’s interest rate ranges between 10.25% and 12.75%.You will need to start repaying your loan after six months of completing your course. Avanse Financial Services is one of the best education loan providers in India as it processes your application quickly.It offers loans for education seekers at over 1600 universities around the world.To apply for the Avanse education loan, you should submit the KYC documents, collateral security requirements, income documents, course fees, and other important documents.Avanse will determine the security collateral according to the loan amount. The loan covers tuition fees, travel expenses, living expenses, book fees, and other related expenses.There is no maximum loan amount as it is customized according to your needs. However, the minimum loan amount for Indian education isFor Which Courses Banks provide Loans in India:-Undergraduate programsPostgraduate programsDoctoral courses and PhDsCertificate courses of 6 months or longer durationJob-oriented coursesTechnical/diploma/professional courses List of Expenses Covered in Education Loan Here’s what the loan amount will cover:Tuition feesHostel feesTravel expenses passage money for students studying abroadInsurance premiumCost of books/equipment/instruments/uniformExamination/laboratory/library feesCost of a computer/laptop required for course completionCaution deposit, building fund/refundable deposit supported by institution bills/receiptsAny other expenses required to complete the course such as study tours/thesis/project work.List of Documents Required for Education Loan Here is an indicative list of documents that most lenders ask for:Admission letter from the educational institutionMark sheets (previous education – school/college)Age proofID proofAddress proofSignature proofSalary slipsRecent bank account statementsITR with the income computationAudited balance sheetRecent bank statementsProof of turnover (service tax return/sales receipt)Completed application form with signatureLatest passport-size photographsAppropriate Visa for studies abroadFAQs:- Question:-What are the 4 types of student loans? Answer:-There are four types of federal student loans: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. Private student loans are issued through institutions like banks, credit unions, schools, and even state agencies. Question:-Who is eligible for an education loan? Answer:-The candidate applying for the loan must be a resident of India. He/she must have confirmed admission to recognized educational institutes in India or abroad. The age of the candidate must fall within the bracket of 18 to 35 years during loan application. Question:- Can I get an education loan without my parents? Answer:-It is to keep in mind that you get an education loan without a financial co-applicant but a primary co-applicant is mandatory for contact purposes only and their financial status will not be checked. Co-applicant should be of your first family i.e parents, parents-in-law, siblings, and spouse. Question:-What percentage is required for an education loan? Answer:-Must have secured at least 50% in Higher Secondary and Graduation. University or college should be in the bank’s categorical list of educational institutions. Co-applicant’s salary should be sufficient to pay simple interest during the moratorium period. Question:-How many years will it take to repay an education loan? Answer:-The Loans are sanctioned as Term Loans and are to be repaid in EMIs over a maximum repayment term of 15 years(180 EMIs) for Student, Scholar, and Global Ed-vantage Education Loans. Question:- Is education loan easy without collateral? Answer:-Any student without collateral to pledge can apply for an education loan as long as they can arrange for a co-applicant to co-sign the loan. 4. Almost all loans without collateral come without a holiday period. Question:- Which bank gives study loans easily? Answer:-Bank of Barodaoffers various education loans at attractive interest rates with repayment tenure of up to 15 years. No collateral needs to be provided for education loans of up to Rs. 40.00 lahks for the identified premier institutes. You May Like My More Articles:-1.https://odiyadigitalworld.com/best-five-government-loan-schemes-for-new-businesses-in-india/2.https://odiyadigitalworld.com/big-five-personal-loan-finance-companies-in-india-2022/3.https://odiyadigitalworld.com/top-10-courses-for-commerce-students-in-india/ Share this article Post navigationWhat is the Importance of Commerce Education in India-2023. Top10 List of Payment Gateways in India- 2023
