Are looking for banks for education loans, there are many big banks in India offer educational loans to people wanting to achieve their academic goals. These educational loans cover a wide range of expenses and are provided for education in India and abroad. Certain documents are required to go about it. This article discusses all the requirements, considerations and lists some of the best banks to opt for an educational loan.
Educational Loan Features
- Educational loans can finance costs up to 1 crore.
- Its repayment tenure can reach upto 15 years and is given for education both in India and abroad.
- There are a few banks that give loans even before applying for a Visa. The facility of doorstep collection of documents is also available.
- Certain banks give female concessions for educational loans.
- The banks give a moratorium period of one year to the student to search for jobs and start repaying the loan from the following year.
- Tax benefits are also available with educational loans. The tax deduction is available only on the interest portion of the EMI, not on the principal. A certificate will be issued by the bank stating the segregation of principal from the interest. This benefit is available for eight years from the time of repayment.
Expenses Covered by an Educational Loan
An educational endeavors to cover a wide range of expenses to pursue the education without caring about the expenses. An educational loan covers:
- Tuition Fees
- Hostel Fees
- Travel Expenses
- Books, uniform, instruments and equipment
- Examination fee
- Library membership fees
- Computer or laptop required for the course
- Caution money/ refundable fees deposited to the institution/ receipts
- Other expenses like Study tours/thesis cost/ project work cost etc.
Eligibility for Applying for an Educational Loan in india
An Indian citizen can apply for educational loans. These Indians can be Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), Persons of Indian Origin (PIOs) and students born to Indian parents abroad and wish to study in India.
Educational loans cover a wide range of courses. They are available for undergraduate, postgraduate, Doctoral courses, PhDs, certificate courses, job-oriented courses, technical, diploma and professional courses.
Government colleges, recognized institutions, private institutes funded by the government, institutes offering professional courses and international colleges and universities.
Collateral-free for loans upto Rs. 7.5 lakhs and loans upto Rs. Forty lakhs for specific courses or institutions. Generally, residential or commercial property, plot, a fixed deposit or insurance is kept as acceptable collateral.
Documents Required for an Educational Loan in india
Following is the list of documents required for an educational loan:
- Admission letter from the university or the institute
- Marksheets of the previous school or college
- Age Proof
- ID proof
- Address proof
- Signature proof
- Salary Slips
- Recent bank account statements
- ITR with the income computation
- Recent bank statement
- Audited balance sheet
- Proof of turnovers like service tax or sales receipt
- Complete application with signature
- Passport size photographs
- Appropriate Visa for studies abroad
There are document charges that are levied from the lender.
How to Apply For an Educational Loan in India
There are majorly three ways to apply for an educational loan- Online, Offline, and virtual assistance.
1. Online Method – It is the most convenient method and can be done in two ways, first is simply by filling the online form and attaching the required documents with it. The second way is to provide all the necessary details and then allow the lender to get in touch to discuss the loan terms.
2. Offline Method- The educational loan can be applied by visiting the bank’s branch with the required documents. Discuss the loan terms with the lender, fill the form, attach the documents and apply for the loan. Or the borrower can call the lender and discuss the terms and proceed to apply for the loan.
3. Virtual Assistant- This is a new method started by banks for their customers for their safety. The borrower can discuss the loan terms, clear their doubts, and then apply for the loan.
Best Banks For Education Loan In India
Educational Loan by Government Banks
|Bank Name||Processing Fee||Interest Rate||Amount of Loan||How to Apply|
|Bank of India||Nil for IndiaRs. 5000 + Taxes for abroad||9.10% onwards||India – Rs.10 lakhsAbroad – Rs.20 lakhs||Apply Now|
|Indian Bank||Nil||9.45% to 12.50%||Rs. 10 lakhs||Apply Now|
|Bank of Baroda||1% of the loan amount upto Rs. 10,000||8.25% to 10%||Upto Rs.4 and above||Apply Now|
|Bank of Maharashtra||Nil||7.20% to 9.05%||India – Rs.10 lakhsAbroad – Rs.20 lakhs||Apply Now|
|Canara Bank||Nil||7.85% to 9.85%||Rs 1 Lakh to Rs. 40 Lakhs||Apply Now|
|Central Bank of India||Nil||9%8.50% – for girls||India – Rs.10 lakhsAbroad – Rs.20 lakhs||Apply Now|
|Union Bank of India||Nil for Indian Students0.50% +GST for NRI students||6.90% onwards||Need based finance||Apply Now|
|UCO Bank||Nil||Above Rs. 4 lakhIndia – 5%Abroad – 15%||India – Rs.10 lakhsAbroad – Rs.20 lakhs||Apply Now|
|SBI||Rs. 10,000 + Tax||7.97% to 10.05%||Above Rs. 20 lakhs||Apply Now|
|Punjab National Bank||1% of loan amount||7.30% onwards||Rs. 15 Lakhs||Apply Now|
|Punjab and Sind Bank||Nil||8.30 % to 10.10%||Upto 20 lakhs||Apply Now|
Educational Loan by Private Banks
|Bank Name||Processing Fee||Interest Rate||Amount of loan||How to apply|
|Axis||Nil to Rs 15,000 + tax||13.70% to 15.20%||Upto Rs. 7.5 lakhs||Apply Now|
|HDFC||1.5% of the loan amount + tax||Contact the bank||Max Apr||Apply Now|
|Tata Capital||2.75% of the loan amount + tax||10.99% onwards||Upto Rs. 30 lakhs||Apply Now|
|Kotak Mahindra||Contact the bank||Upto 16%||India – Rs.10 lakhsAbroad – Rs.20 lakhs||Apply Now|
|ICICI Bank||Contact the bank||Contact the bank||India – Rs.50 lakhsAbroad – Rs.1 crore||Apply Now|
|Federal Bank||Contact the bank||10.05% onwards||India – Rs.10 lakhsAbroad – Rs.20 lakhs||Apply Now|