1- Introduction About Education loans :
For getting education properly, the individuals are required to take admission in highly reputed institutes. With it, they need to pay more tuition fee and some other charges. Everyone is not capable of bearing these expenses.
In order to grab funds here, the students are finding a perfect way. The education loan is becoming that particular way. It is also considered as the student loan. By accessing the way of student loan, you are able to bear all types of expenses that you do during the studies. Mainly the expenses those are covered in the loan are –
- Travel expenses
- Health insurance
- Books
- Computers
- Lodging
- Boarding
- Library
- Examination
- Tuition
- Admission
For all these things, the individuals do not need to spend a single penny. Money for all these expenses is paid by the education loan provider.
2- Popular Education loan in Hyderabad :
| Bank | Education Loan Interest Rates in India | Education Loan Interest Rates in Abroad |
| Avanse DHFL Education Loan | 11.50% | 11.50% |
| Axis Bank Education Loan | 13.45% | 13.45% |
| Bank of Baroda Education Loan | 10.50% | 11.55% |
| Bank of India | 9.85% | 9.85% |
| Bank of Maharashtra | 10.25% | 10.25% |
| Canara Bank | 9.95% | 9.95% |
| Central Bank of India | 10.10% | 10.00% |
| Corporation Bank | 10.95% | 10.95% |
| Dena Bank | 10.30% | 10.30% |
| Federal Bank | 10.90% | 10.90% |
| IDBI Bank | 9.50% | 9.50% |
| Indian Bank | 8.60% | 10.60% |
| Indian Overseas Bank | 10.70% | 10.70% |
| Karnataka Bank | 10.90% | 10.90% |
| Karur Vysya Bank | 11.65% | 11.65% |
| OBC | 10.40% | 10.40% |
| PNB | 8.35% | 10.45% |
| SBI | 8.60% | 9.75% |
| UCO Bank | 10.65% | 10.65% |
| Union Bank of India | 10.20% | 10.20% |
| United Bank of India | 10.50% | 10.50% |
3- Education loan Features and Benefits
All types of loans are having different features. Mainly the features are based on the terms & conditions and some other factors. If you are interested in getting knowledge regarding the features of education loan then following are some basic ones.
No barriers to education
The way of education loan eliminates all types of financial barriers from the way of education. For availing the loan facility, the students need to provide a guarantor. Guardians, parents or third party individual can be considered as a guarantor for the loan.
Co-applicants
Some financial institutions are applying caps on the loan amounts. Mainly these caps are representing some restrictions. When the loan amount crosses the cap then the applicants need to add a co-applicant. The parents of the student can be considered as a loan applicant.
Collateral
Mainly the education loan is unsecured in nature. In case the loan amount becomes high then the applicants need to provide collateral to the financial institution. Mainly the collateral is providing them a repayment security.
Specific concessions
The student loan offers are designed by adding different types of features and services. With it, there are some specific concessions offered by the institutions such as – rebate in interest rates and so on.
Now I’m going to mention some benefits related to the education loan.
Good for investments
Due to the higher education expenses, some individuals are not able to invest funds. If the investment panel is getting disturbed then they cannot achieve some specific goals of the life. The education loan is useful in bearing the education expenses without disturbing these types of factors.
Taxation benefits
When you are paying interest for the education loan then you are able to show the amount as an expense in the books. This particular amount can help you in getting proper relaxation in the taxation policy. As a result, you are required to pay a lower amount of money as tax.
Make applicant responsible
The students those are availing the education loan they can get some responsibility lessons. They need to think about the repayment of the loan amount and some other important factors. Due to all these things they can face a financial responsibility on their shoulders at an early age.
Create a good credit history
A credit score is playing the most important role. Everyone wants to keep it perfect and good. It affects lots of factors when it comes to avail the loan or other financing services. For such a task, the borrowers need to make payments on time. In case anyone is delaying in making payments then it may affect the credit history and leads to lots of bad things.
4- Types of Education loans
The education loans are available with different types of plans. Mainly these plans are based on the nature of loan and some other important factors. With it, the education loan is provided in two major categories. Mainly these categories are –
- Secured loans
- Unsecured loans
Mainly the loans for those, the individuals are required to present any kind of collateral are considered as the secured loan. The collateral is considered as the future security of repayments for the banks. In case the borrower is not repaying the money then financial institutions consider the way of collateral for getting money recovery.
In the case of an unsecured loan, the institutions are providing funds only on the basis of a guarantee. Here the guarantor may be a guardian, third-party individual or parents. If the borrower is not paying the money back then guarantor is responsible for that particular thing.
On the basis of these two categories, there are four different types of education loans designed. All types of loans are suitable for different types of education such as –
- Undergraduate Student Loan
- Graduate Student Loan
- Career Student Loan
- Loan for parents
The individuals are required to choose the loan type as per the requirements and type of education they are going to apply.
5 Education loan Eligibility Criteria:
I – The candidate applying for the loan must be a resident of India.
II – He/she must have confirmed admission in recognized educational institutes in India or abroad.
III – The age of the candidate must fall within the bracket of 18 to 35 years during loan application.
IV – He/she must be undergoing a graduate/postgraduate degree or a PG diploma.
V- The applicant should have a secured admission in a college or university affiliated by UGC/AICTE/Govt. etc.
IV- Students pursuing full-time courses need to have a co-applicant who can be either parent/guardian or spouse/parent-in-law (in case of married candidates).
6- Documents Required for Education 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