Apply online for an Education loan
Table of Contents
All private and public sector institutions in India have taken on the responsibility to provide financial aid through education loan to students in need in order to help them complete vocational and technical training. To offer education loan without hassle or delays All Indian banks have simplified their processes and have begun the online application procedure to apply to borrow money online. However, for those banks that haven’t launched the online application process to apply for a loan for education In that instance, students will need to fill in and submit the application within the bank.
Education loan eligibility
- Candidates must possess Indian citizens.
- They must be 18-30 years old when they are application,
- Admission has been taken in professional/technical course through entrance test/selection process,
- It is designed applicable to recognised professional and technical training classes in the nation as well as abroad.
- The applicant shouldn’t be in the process of obtaining a loan from another bank,
- The loan for education is only available at the nearest branch of your bank.
Education Credit Eligible Courses
In India (Indicated list):
- Undergraduate courses: BA, B.Sc, B.Com etc.,
- Post Graduate Courses: MA, M.Sc, M.Com, M.Phil, Ph.D etc.,
- Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer science etc.,
- Computer certificate courses at respected institutions that are recognized through the Department of Electronics or University,
- Courses like ICWA, CA, CFA,
- IIMs, IITs, IISc, XLRI, NIFT, NID and various other institutions that were established in the name of Central and State governments,
- Night classes offered by recognized institutions,
- Courses conducted by University Grants Commission, All India Council of Technical Education, Indian Council of Medical Research, approved colleges/universities from India or State Governments or other authorized bodies from which diplomas/degrees can be obtained,
- Courses are offered at National Institutes and other reputed private institutions, endorsed from Head Office. Head Office,
- Courses taught in India by internationally renowned foreign universities, which have been approved by Head Office.
1. Vocational training courses that are not recognized according to the All India Council of Technical Education or programs offered by institutions that aren’t recognised in the eyes of State Universities are not covered under this scheme. 2. There is a specific scheme specifically for students from IEET that are given loans with a concessional rate of interest.
- Graduation: Job-oriented technical and vocational courses offered by reputable universities.
- Post Graduate Courses: MCA, MBA, MS etc.,
- Courses offered in conjunction with CIMA London and CPA USA,
- School Education/Inter-Secondary and Undergraduate Courses. Professional Courses and Graduate courses in Engineering/Medical /Agriculture/Veterinary Dental and Physiotherapy Nursing, Law Management / PGDRIM or ICWA CFA / CA IIT/IISc and XLRI/NIFT, as well as other courses that are approved by the Central Government or State.
- Courses conducted by University Grants Commission, All India Council of Technical Education, Indian Council of Medical Research, approved Colleges/Universities of India or State Government or other authorized bodies from which Diploma/Degree can be obtained.
Maximum amount of Educationloan
- There is a provision for offering loans up to Rs.10.00 lakhs, based on the capacity to repay the applicant’s guardian , or students.
- Maximum Education loan amount to study in India is Rs. 10 lakhs
- The maximum amount that can be borrowed for study abroad: 20 lakh.
Margin amount of Education loan
- 04 lakhs Nil
- Beyond 04 lakhs 5 per cent
Security Against Education loan
- Up to Rs 4 lakh: There is no security,
- From Rs. 4 lakh and Between Rs 4 lakh and 7.5 lakh Collateral security is by way of a guarantee by a third party.
- More than 7.5 lakh A security collateralized by a reasonable value , or as the Bank would like, along with an a suitable third party guarantee for future installments by the applicant.
Note: The amount of the Education loan is released based on the number of years and based on the academic progress that the pupil. The applicant must get the certificate of successful completeness of the academic year from the appropriate authority to continue further studies.
How Education loan are disbursed
The amount of the loan is released based on the length of time based on the development in the education of the applicant. The applicant must get the certificate of successful completeness of the academic year from the appropriate authority to continue further studies.
Repayment of Education loan
Repayment holiday/Moratorium: Duration of the course + 1 year or six months following the date of work, whichever is earlier. The loan’s repayment is required to be between 5 and 7 years after the start date of loan. The repayment time frame for loans varies between banks and is determined on a basis of course.
Processing fee for processing
However, certain banks do not charge an educational loan processing fee however, some banks charge a fixed amount for the amount.
- The loan is disbursed in several stages, which are decided as per the requirement of the institution/textbook/equipment,
- To be eligible for the next course the applicant must provide the mark list from the semester’s first session,
- In the event of any alteration in the address of their residence parents or students must provide your current residence address at the time of application to banks.
- Change of plan, completion of studies, completion the course/refund fee from a college or institution job, successful placement, wish to work or change jobs or change of job, etc. Should be reported immediately to the parent/student at the branch of the bank.
Choose the branch of the bank to apply for the Education loan
It is possible to obtain an education loan at your bank’s branch. However, if a student wants to be admitted at an institution that is far from the residence of the parent/guardian of the student the loan can be obtained through the branch of the bank at the identical location, provided the branch is owned by the applicant or his/her parent/guardian is also located near the location of residence. Candidate must be accompanied by the parent/guardian or the guarantor (as appropriate) to the branch of the bank where all formalities for the loan are completed.
Documents required for a Education loan to the education sector
- Fill in the application completely,
- Mark sheet for passing exam
- Admission Certificate including the details of the course’s expenses and the duration of the course
- Fee Structure (Certificate from the College or University)
- 2 passport size photographs
- Identification card for the person applying or parent/guardian as well as Guarantor (as appropriate) (Passport or ID card/ Voter ID card , PAN card etc.)
- Residency certificate (ration card, voter ID card, passport or Xerox duplicate of the electricity or telephone bill, or any other acceptable form for the banks)
- Guarantor’s details (when the amount of loan is more than Rs.4 lakh)
- Income certificate of the borrower/guarantor
- Declaration of co-responsibility for the parent/guardian
- Declaration/affidavit to the effect that parents and students have not taken any loan from any other institution,
- Margin value (above Rs.4.00 lakh) For studies in India for 5%. For study abroad: 15 percent
- Ownership certificate or other security on property (if the loan amount is greater than Rs.7.50 lakh)
- Collateral, if is required (LIC policies (surrender value not less than the loan amount)or share certificateor units of UTI and so on. Appraisal certificates issued by bank’s approved panel in the case of construction or land and the legal advice of the bank’s legal panel).
Application process to apply for a educational loan
All private and public sector banks offer an online application facilities for the education loans. Candidates who are interested can apply online for a loan to study or make an application in person at the nearest branch of the bank. The applicants who are affiliated with the bank can view their status on the application online after filling out the online form for an education loan.
Choose the lender that you would like to get an the education loan:
Note: The amount you can borrow is contingent on the length of the course as well as the institution. It varies between banks or course. Also, the rate of interest and processing fee, repayment time, margin amount , and security can differ between banks.
For more information about the loan amount and margins, as well as security and return policy of banks, visit your the nearest branch or dial toll-free number.