Going abroad for higher studies? Or there’s a course that is domestic and expensive? so check the Education Loan process from the Indian Bank in 2022. Check the Eligibility, Fees & Charges, Documentation Request for Education Loan/Student Loan.
What is Education Loan?
Going abroad for higher studies? Or there’s a course that is domestic and expensive? Education loans can be taken by means of funding, scholarships, financing, and rewards, and are granted in cash Whatever be your reason. Education loans are intended to cover the cost of tuition, books and supplies, and living expenses while the borrower is in the process of pursuing a degree.
The first step in applying for a student loan is figuring out whether you will be considered an independent student or one who is dependent on your parents. EMIs are fixed amounts of sums decided at the time of taking a loan which students can pay every month to repay the study loan step-by-step. Loans below 4 lakhs require no guarantor but for the ones above this amount, a guarantor is mandatory.
The interest on an education loan is eligible for a tax rebate under Section 80 E of the Income Tax Act 1961. The federal government pays approximately 97% of the principal balance to the lender.
Education Loan Offers By Top Indian Banks in 2022.
Education Loan eligibility by top Indian Banks in 2022.
Education Loan eligibility by HDFC Bank
- Indian resident, between 16 and 35 years of age
- Co-applicant is mandatory for all full-time programs – co-applicant could be parent/guardian, or spouse/parent in law
- Students should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/ Merit Based Selection process
- Approved courses leading to graduate/ post-graduate degree and PG diplomas conducted by recognized colleges/ universities recognized by UGC/ Government/ AICTE/ AIBMS/ ICMR etc. check more
Education Loan eligibility by ICICI Bank
| Particulars | Eligibility |
|---|---|
| Nationality | Indian |
| Age | Minimum- 18 years Maximum- 35 years |
| Academic record | Proven - good |
| Qualification | Pursuing graduate/postgraduate degree or a PG diploma. |
| Income source | Parents/Guardians |
| Income | stable check more |
| University applied to | Recognized – In India/Abroad |
| Admission Status | confirmed |
| Security | Tangible collateral or guarantor- depending on the loan amount and income source. |
Education Loan eligibility by other Bank
Repayment period of up to 15 years after Course Period + 12 months of repayment holiday*
Processing Charges
- Loans up to Rs. 20 lacs: NIL
- Loans above Rs. 20 lacs: Rs. 10,000 (plus taxes)
Security
- Upto Rs. 7.5 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
- Above Rs. 7.5 Lacs: Parent/ Guardian as co-borrower and tangible collateral security
Margin
- Up to Rs 4 Lacs - Nil
- Above Rs 4 Lacs - 5% for studies in India, 15% for studies in abroad
Repayment will commence one year after completion of the course.
Loan to be repaid in 15 years after the commencement of repayment
In case a second loan is availed for higher studies later, to repay the combined loan amount in 15 years after completion of the second course
EMI Generation
- The accrued interest during the moratorium period and course period is added to the principal and repayment is fixed in Equated Monthly Installments (EMI).
- If full interest is serviced before the commencement of repayment; EMI is fixed based on the principal amount only.
What Documents Required for Education Loan By Indian Banks in 2022.
Here are the mandatory documents that a student need to provide to the banks while applying for a student loan:
- Duly filled and signed application form with affixed photographs
- 2 photographs of passport size
- Copy of exam mark sheets of 10th/12th or latest education certificate
- Statement of course expenses/cost of study
- Aadhaar Card and Pan Card of the Student and Parent/ Guardian
Age proof
- Copy of Aadhaar Card /Voter ID/Passport/Driving License
Identity proof
- Copy of Voter ID/Aadhaar Card/Driving License/Passport
Residence proof
- Rental agreement/Bank statement of 6 months of the student or co-borrower/guarantor/Copy of Ration card/Gas Book/Electricity Bill/Tel Bill
Income proof
- Most recent salary slips or Form 16 of the parent/ guardian/co-borrower
- 6 months bank statement of the borrower or updated passbook of bank
- Updated ITR (Income Tax Return with income computation) of 2 years or IT assessment order of last 2 years of parent/co-borrower/guardian
- Documents stating the assets and liabilities of the parent/co-borrower/guardian
Other if,
- Latest 2 Salary Slips carrying the date of joining details
- Latest 6 Months Bank Statement of the Salary Account.
- Self Employed
- Last 2 Year ITR with Computation of Income
- Last 2 Years Audited Balance Sheet
- Last 6 Months Bank Statement
- Proof of Turnover (Latest Sales / Service Tax Return)
- Self Employed – Professional
- Last 2 Year ITR with Computation of Income
- Last 2 Years Audited Balance Sheet / P& L
- Last 6 Months Bank Statement
- Proof of Qualification...check more
How do I repay my education loan?
Go for a collateral Loan, Pay interest during the moratorium, Take Loan subsidy schemes, Form a sensible repayment strategy, Lenders may offer concessional rates for women, those studying in premier institutions
Choose a higher loan tenure like you can avail a tenure of 10 years and above pre-pay if you have funds, longer tenure reduces the monthly EMI installment and gives you a more comfortable margin to repay your loan.
To repay my education loan contact your bank manager or coordinator who will take note of your account details and start the repayment on an auto deduction mode. You can also check out the various education loan repayment on the bank portal.
Check the Medium to Repay Education Loan
- By Cheque/DD (Demand Draft repayment)
- Repayment through by cash
- Automated EMI payments (ECS/NACH)
Education Loan / Student Loan FAQ's
Q Can I get an education loan without interest?
Ans- No, education loan is not interest-free in India
Q Is education loans expensive in India?
Ans- Yes, in India is generally much higher and goes as high as 15% with some banks
Q Can I get an education loan before admission?
Ans- Yes, If your case is approved
Q Is any property required for an education loan?
Ans- No, no collateral is required, only parents to be join-borrowers on an education loan.
Q Is there any education loan in India?
Ans- envisages loans by banks and financial institutions for the purpose of education up to Rs. 7.5 lakh for studies in India and up to Rs. 15 lakh for studies abroad
Q Can I pay my student loan all at once?
Ans- Yes, you can pay a student loan at once at any time
Q Is it good to pay an education loan early?
Ans- Yes, You can save a good chunk of the amount from your loan repayment
Q Which bank is best for an abroad education loan?
HDFC Bank, State Bank of India, Axis Bank, ICICI Bank, Bank of Baroda, etc..
Q Do student loans affect credit scores?
Ans- Yes, Student loans are a type of installment loan only, similar to a car loan, personal loan, or mortgage
Q How is EMI calculated for education loans?
Ans- education loan EMI amount = [P x R x (1+R)^N]/[(1+R)^N-1] where P, R, and N are the variables
Q How do I arrange money to study abroad?
Ans- By Scholarships, Loans, Part-time work, Sponsorships, Exchange programs, etc.
Note: We have gathered or collected this information from various sources across the web So Please check the official website for exact and detailed information.
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