All that you got to know about Education Loans

Wondering about what would be the next step towards your shining career? How about a Degree or a Professional course from a top university in India or even Abroad? When it comes to education you should never compromise on it, after all the better educated you are the better job you are likely to get into and the better job you are in the better money you would make. So, do not let you finances stop you when it comes to education as availing an Education Loan can serve as a solution to Higher Education. Here are some facts and figures you should know while applying for a Education loan in India.

What are the purposes for which you can apply for an Education loan?

Enlisted below are various reasons for which you can apply for Education Loan anywhere across the country.

1. For Studying in India

2. For Studying in Abroad

3. For Obtaining a Balance Transfer on an existing Education loan

Who can apply for Education Loans?

1. Students

2. Parents/Legal Guardian/Relative living in India

3. Executives/Professionals having a work experience of at least 2 years.

What is the loan amount that can be availed for Education Loan?

Maximum Loan amount of Rs. 1 Crores can be availed as an Education Loan.

What is covered under Education Loan?

Get 100% finance for your education in India or abroad which is inclusive of the following:

1. 100% Tuition fee which needs to be deposited directly to your School or university you will be in enrolled in

2. The education loan amount is also inclusive of the cost to buy you your study material such as books, project material, laptop and upto 75% of the living cost. The cost of your living expenditure, study material and overheads should not exceed 20% of the tuition fee.

3. For all students travelling abroad travel expenditure upto Rs.75000/- can also be included in the loan disbursed.

What is the rate of interest for availing education loans?

Education loan can be availed at a rate of interest upto 12.50%

What is the Loan tenure for which you can borrow Education loan?

Education Loan can be borrowed for a loan tenure of 10 years.

What is the provision for part-payment and fore-closure charges on Education loan?

NIL – Advance Part-payment

NIL- Fore-Closure Charge

What is the provision for disbursement of education loan?

You can avail Pre-visa Disbursement & Pre admission education Loans to ensure that your university does not reject your loan application due to lack of funds in your account.

Is there a moratorium period?

Firstly, Moratorium period is a holiday period where the applicant the re-payment of the loan starts after 6 months of the completion of the course duration.

Check your eligibility to apply for Education Loans:

1. You should be an resident of India residing

2. You must have a co-applicant who would serve as the primary borrower of your education loan

3. You should have passed your Secondary School Education

4. For the bank to disburse the education loan in your account your admission should be necessarily confirmed by the university/ institute you wish to apply in

5. Your good academic record will play a vital role in making you more eligible for availing education loan.

6. Your co-borrowers eligibility will serve as a boon to chances of apply for education loan to get approved in a relatively smoother and faster manner.

Eligibility factors determining Avanse- Education Loan:

7. You should be an resident of India

8. You should have co-applicant who would act as your guarantor for education loan

9. You should have passed your Secondary School Education

10. Your admission should be confirmed by the university/ institute you wish to join for the bank to disburse the loan amount in your account.

11. Your good academic record will play a vital role in making you more eligible for availing education loan.

12. Your eligibility factor will become more powerful if your co-borrowers capacity to re-pay the loan is on the higher side.

Documentation required for availing Avanse- Education Loans:

The following documentation proofs are required both for the applicant as well as the co-borrower to avail education loans:

• Identity Proof

• Residential Proof

• Address Proof

• Signature Proof

• Education Certificates

• KYC documents of co-borrower

• Work experience certificate in case of Executive Education Loan

When is the loan disbursed?

Usually education loans are disbursed only once your admission has been confirmed by the university or college. However students can also apply for Pre-admission Loans (PAL)

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