Hi all..
Today I’m going to share some useful information on getting an Educational Loan from bank.But before that I would like to thank my brother Mr. Sathish Kumar for this post, who collected all the details in all possible ways (yeah he knows better than me,because he experienced lot to get a loan for his Engineering).
Actually,to get a loan is not much complicated task but requires some field work to choose the perfect bank according to your convenience.
Everyone used to tell that there is no interest for educational loans in banks. Well actually that exhibits the ignorance among our society. We live in a country where it’s easy to get 5000 crore as loan and just flew off anywhere without repaying it but it’s almost impossible for a farmer to survive if he gets just 50 K as loan. Oops! I’ve always tend to deviate😊
Well coming to our topic, there are some basic terms and conditions that one should know before applying educational loan. It was mentioned has follows.
Course of study
Eligibility
Place of available
The loan is to be availed from the branch nearest to the place of domicile of the student.
Amount of Loan
Margin up to Rs.4.00 lakhs - Nil.
Above Rs.4.00 lakhs: For Studies in India - 5%. and for Abroad - 15%.
Note 1:
People tend to confuse the word margin along with interest. Margin is the initial amount that has to be paid while getting the loan.
For instance, if the loan was applied in INDIAN BANK for 7 lacs means you have to pay the margin amount of 5% i.e.,Rs.35,000. So if any bank mentioned as margin free loan means it does not refers to interest.
Interest Rates: The rate tends to differ from 12.00%-15.00% depend on the banks.
Security
Documents Required
Salient Features
You can also get hostel fee, exam fee, purchase of books and equipment etc., which are necessary for the completion of that particular course. You can also get money for purchasing a laptop.
Other Details
NOTE 2:
Hence it wasn’t a much bigger task. Just play by the rules, provide some proofs and submit few documents and there you go!
Check this below links for comparison of Education loan with other banks & EMI calculator.
https://www.bankbazaar.com/education-loan.html
https://www.bankbazaar.com/education-loan-emi-calculator.html
Today I’m going to share some useful information on getting an Educational Loan from bank.But before that I would like to thank my brother Mr. Sathish Kumar for this post, who collected all the details in all possible ways (yeah he knows better than me,because he experienced lot to get a loan for his Engineering).
Actually,to get a loan is not much complicated task but requires some field work to choose the perfect bank according to your convenience.
Everyone used to tell that there is no interest for educational loans in banks. Well actually that exhibits the ignorance among our society. We live in a country where it’s easy to get 5000 crore as loan and just flew off anywhere without repaying it but it’s almost impossible for a farmer to survive if he gets just 50 K as loan. Oops! I’ve always tend to deviate😊
Well coming to our topic, there are some basic terms and conditions that one should know before applying educational loan. It was mentioned has follows.
Course of study
- In India: Diploma/Graduation/Post graduation courses in various disciplines
- In abroad: Job-oriented professional/technical courses offered by reputed universities, MCA, MBA,MS etc.
Eligibility
- The applicant should be an Indian.
- He/She should have secured admission to professional/technical courses in India/Abroad through Entrance Test/Merit based selection process.
Place of available
The loan is to be availed from the branch nearest to the place of domicile of the student.
Amount of Loan
- For studies in India - Rs.15.00 lakh
- For studies Abroad - Rs.25.00 lakh
Margin up to Rs.4.00 lakhs - Nil.
Above Rs.4.00 lakhs: For Studies in India - 5%. and for Abroad - 15%.
Note 1:
People tend to confuse the word margin along with interest. Margin is the initial amount that has to be paid while getting the loan.
For instance, if the loan was applied in INDIAN BANK for 7 lacs means you have to pay the margin amount of 5% i.e.,Rs.35,000. So if any bank mentioned as margin free loan means it does not refers to interest.
Interest Rates: The rate tends to differ from 12.00%-15.00% depend on the banks.
Security
- Up to Rs.4.00 lakhs: No Security
- Above Rs.4.00 lakhs and up to Rs.7.50 lakhs - obligation of parents along with third party security
- Above Rs.7.50 lakhs - obligation of parents together with tangible collateral security of suitable value along with the assignment of future income of the student for payment of installments.
Documents Required
- Admission details(Admission letter & Bonafide student certificate from the College/University)
- Academic Record (10th & 12th mark sheets)
- Birth & Community certificate
- Proof of identity and proof of residence
- Proof of income of parent/guardian
- Statement of cost of study ( fees structure)
- Collateral & Declaration
- Two recent passport size photographs
Salient Features
You can also get hostel fee, exam fee, purchase of books and equipment etc., which are necessary for the completion of that particular course. You can also get money for purchasing a laptop.
Other Details
- Holiday Period:Course period plus 1 year or 6 months after getting job, whichever is earlier
- Family Income: There is no restriction regarding income.The main emphasis is that no deserving student is denied an opportunity to pursue higher education for financial support.
NOTE 2:
Hence it wasn’t a much bigger task. Just play by the rules, provide some proofs and submit few documents and there you go!
Check this below links for comparison of Education loan with other banks & EMI calculator.
https://www.bankbazaar.com/education-loan.html
https://www.bankbazaar.com/education-loan-emi-calculator.html
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