How to apply for Education Loan | Education Loan Apply Online

How to Get Education Loan Online? Best Education Loan in India: As we have seen from recent times, students are not only smart and talented but also willingly pursue themselves. When it comes to higher education or studying in a foreign institution, choosing it can cost a huge amount. This is when it comes to education fees, cost of living, day-to-day expenses, etc. The best way to overcome this problem is to take a loan.

What is Education Loan?

Education loan refers to a type of loan that is borrowed by students to finance their expenses related to secondary or higher education. Education loans can be used to cover tuition fees, basic living expenses, as well as books and supplies needed during the education period.

However, the cost of education has been increasing recently and the option of education loan seems to be the best solution.

Education loan is a loan that students apply for to complete their studies and meet their financial needs. Many banks in India offer education loans at competitive interest rates to help students

Compared to other types of loans, education loans usually carry lower interest rates, and repayment is usually deferred until the student completes his studies. “Best Education Loan in India”

For how long will the education loan be available

Generally, repayment starts after completion of the course. Some banks also provide a grace period of 6 months or one year after securing a job after completion of studies for repayment. The repayment period is generally 5 to 6 years. During the duration of the course, the bank charges a simple interest rate on the loan. Payment of simple interest during the course period reduces the Equated Monthly Installment (EMI) burden on the student for future repayment. Some lenders offer a grace period of 6 months after completing the course to get a suitable job and start the repayment process. This grace period may vary with the lender. Once you get a job within this period, you can start the repayment process in installment form.

How much interest will be charged on Education Loan

It depends on different banks. We get loans from all banks whether it is a private bank or a government bank.

The interest rates of various banks are given below.

1. State Bank of India (SBI) 6.90% – 9.30%
2. Punjab National Bank (PNB) 6.90% – 9.55%
3. Canara Bank 7.40% – 9.40%
4. Union Bank of India 7.20% – 10.45%
5. Bank of Baroda 6.85% – 9.95%
6. Axis Bank 13.70% – 15.20%
7. ICICI Bank 11.25% – 11.75%
8. HDFC Bank 9.25% – 13.68%
9. Kotak Mahindra Bank 12.33% – 16.00%
10. Tata Capital 10.99%

How much will the Education Loan Processing Fee cost?

• Punjab National Bank: 1% of loan amount
• State Bank of India: Rs 10,000 up to + tax
• Axis Bank: Rs 15,000 + tax
• Bank of Baroda: Rs 10,000. + tax
• HDFC Bank: 1.5% of loan amount + tax
• Tata Capital Bank: 2.75% of loan amount + tax
• Union Bank of India: 0.50% of loan amount + tax
• Bank of India: Rs 5,000 + tax

How can Get Education Loan in India

To apply for the loan, one must be an Indian citizen who has obtained admission to a college/university recognized by a competent authority in India or abroad. The applicant must have completed his/her higher secondary level school education. The loan applicant must be 18 years of age otherwise his/her parents will have to get the loan.

Some banks provide loans even before gaining admission to university. As per RBI guidelines, there is no restriction on the upper age limit, but some banks may have it.

Documents required for Education Loan

Documents for education loan that you will need to appear with the application form. The documents mainly include but are not limited to:

For Student-Applicants:

• Proof of Identity (Any): PAN/Passport/Aadhaar/Driving License/Voter ID Card
• Proof of Residence/Address (Any): Recent copy of Telephone Bill/Electricity Bill/Water Bill/Piped Gas Bill or Passport/Driving License/Aadhar Card
• Academic Records: 10th Result and 12th Result
• Graduation Result: Semester-wise (if applicable)
• Entrance test results through which admission has been secured (GMAT, GRE, TOEFL or IELTS)
• Proof of admission: Offer letter or admission letter from the institute. In case of study abroad, conditional admission card may be considered.
• Details of Cost of Study/Schedule of Expenses
• 2 passport size photographs
• If there is any previous loan from other banks/lenders, loan account statement of last 1 year. “How to get/can get education loan from Bank? Best Education Loan in India?”

For Co-Applicants:

• certificate of identity
• Proof of Residence/Address (Any): Recent copy of Telephone Bill/Electricity Bill/Water Bill/Piped Gas Bill or Passport/Driving License/Aadhar Card
• 2 passport size photographs
• If there is any previous loan from other banks/lenders, loan account statement of last 1 year

For Income Proof of Salaried Co-Applicant:

• Salary slip or salary certificate of last 3 months
• A copy of Form 16 for the last two years or a copy of the IT return for the last 2 financial years, accepted by the IT department.
• Bank account statement (of salary account) for last 6 months

For Income Proof of Self-Employed Co-Applicant:

• Proof of business address (if applicable)
• IT Returns for last 2 years (if IT payer)
• TDS Certificate (Form 16A, if applicable)
• Certificate of Competency (for CA/Doctor and other professionals)
• Bank account statement of last 6 months

Criteria for Education Loan

• Indian citizens only.
• Degree from recognized college/university
• Education: Must have completed 10+2 (12th class) for undergraduate course and degree for postgraduate course.
• The loan applicant must be 18 years of age otherwise his/her parents will have to get the loan.
• The desired course the applicant is going to pursue should be technical or professional, as banks give preference to job oriented courses.

How to Get Best Education Loan from Bank in India

You can either visit the bank of your choice and inquire about the loan process, or you can apply online. Once the loan application is submitted, the bank will begin the process by verifying your documents, evaluating the course of study for which you wish to avail the loan, and the collateral you can provide. The bank will then keep you informed.

Step 1 – Filling the Application Form

Like any other loan, the first step is to fill out an application form. The application form is a simple form in which you have to provide your personal contact details as well as your academic details. Make sure you provide accurate and truthful information in this form.

Step 2 – Interview

The next stage of the education loan process is the interview round. After considering your application, your bank usually calls you in person or for an interview. Please note that the loan is offered to the student as co-obligator of the parent/guardian and the student is considered the primary loan applicant. You may be asked several questions related to your academic performance, the institute you want to attend, the course you have chosen, the future scope of your chosen course, etc. You must be honest and be able to convince the bank that you are choosing a stream that has the potential to generate good income, thereby enabling you to repay the loan.

Step 3 – Documentation

Before the loan can be processed you must prove to the bank that your chosen university has extended an offer of admission. This is the primary document that all banks ask for before even starting the actual loan application process. The Bank may contact the University to verify your enrolment. If your education loan amount is more than ₹4,00,000, you will need to provide some kind of collateral in the form of a third party guarantee if the loan amount required is up to ₹7,50,000, and if it is more than ₹7,50,000 , you are required to provide collateral security equal to 100% of the loan amount along with assignment of the student’s future income for payment of installments.

The assignment of the student’s future income for payment of installments is applicable to all education loans irrespective of the loan amount. “How to get/obtain the best education loan from the bank in India?”

Step 4 – Loan Approval

The bank also verifies the credit history of the co-borrower/guarantor before approving the loan. The Bank offers a moratorium period equal to the course duration plus one year and it is optional for borrowers to service the interest on education loans during this moratorium period. Once the loan is approved, borrowers will receive a sanction letter from the bank. Once the borrowers accept the terms and conditions of the sanction, the bank calls them for execution of the loan documents and if it is required as per the terms of the sanction, basically the collateral security papers are handed over to the bank. .

Step 5 – Loan Disbursement

The last step in the education loan process is loan disbursement. Banks usually disburse the loan directly to your chosen university through bankers cheque, demand draft or SWIFT message along with your margin as per the location of your chosen university/institute, if stipulated in the sanction.

How to forgive education loan

If you are someone who is already paying an education loan and is now finding it difficult to repay, the first thing you should do is contact your lender and ask them if your loan can be restructured. 

According to recent guidelines issued by the RBI in May 2021, the resolution plan for personal loans may include converting any accrued interest into a credit facility, rescheduling of payments and subsidizing. Moratorium for a maximum of 2 years based on assessment of the income stream of the borrower. RBI has permitted lenders to revise the overall tenure of the restructured loan accordingly.

Best Education Loan in India

1. HDFC Bank Education Loan

• Maximum loan limit: Rs. 20 lakhs and above.
• HDFC Bank offers education loans for studies in India and abroad. The maximum loan amount for studies in India is up to Rs 20 lakh.
• The loan is for a maximum tenure of 15 years and is disbursed directly to the institution based on the fee structure.

2. Avanse Education Loan

• Avanse DHFL education loan interest rates are quite competitive for education in the best institutions in India and for study abroad.
• Interest rates on education loans are floating, and keep changing with changes in MCLR.
• Avanse DHFL Education Loan interest rates range between 12.75% and 12.75%.

3. State Bank of India

• Through the State Bank of India Student Loan Scheme, State Bank of India offers some of the cheapest education loans in India.
• Loans are available for all professional, undergraduate and postgraduate courses like MBA, MS, etc. in reputed universities in your country.
• For loans above Rs 7.5 lakh, a maximum loan of up to Rs 30 lakh can be taken with the required security deposit or collateral. Repayment in 10 to 12 years
• This can be extended up to 15 years in some cases. The entire interest payment can be made during the moratorium period. “How to get/can get the best education loan from the bank in India?”

4. ICICI Bank Education Loan

• Get maximum loan – Rs 50 lakh
• ICICI Bank offers education loans up to Rs 50 lakh for studies in India.
• You do not need to keep any collateral for an education loan up to Rs.
• 20 lakh for UG courses and 40 lakh for
• Lakhs for PG courses in select premier institutes.
• The main drawback of ICICI Education Loan is that- the repayment holiday period is limited to 6 months after the completion of the course, irrespective of the employment status.

Best Education Loan for Abroad Studies

1. State Bank of India

Features of State Bank of India Student Loan

• The following loan schemes by State Bank of India are student loans in favor of international students.
• SBI Student Loan Scheme
• Loan given to Indian citizens who have sought admission in India or abroad for their higher education
• The scheme provides loans for job-oriented vocational/technical undergraduate degree courses/post-graduate degree/diploma courses like MCA, MBA, MS, etc. offered by foreign universities.
• You can go for courses like Chartered Institute of Management Accountants and Certified Public Accountant.
• SBI Student Loan Scheme offers loans up to Rs 7.50 lakh for studies abroad.
• Repayment starts one year after completion of studies. Repayment is through EMI.

2. SBI Global Ad-Vantage Scheme

• SBI Global Ed-Vantage Scheme is an overseas education loan to study full-time regular courses in overseas colleges/universities.
• The scheme covers regular undergraduate degree/postgraduate degree/diploma/certificate/doctoral courses in any discipline offered by foreign institutions/universities in the USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand and Europe. Are included.
• Under the SBI Global Ed-Vantage Scheme, SBI offers educational loans ranging from Rs 7.5 lakh to Rs 1.5 crore for overseas studies.
• Expenses covered by the loan include tuition fees, fees for examinations, purchase of school supplies (uniform, books, equipment), traveling expenses, caution deposits, expenses for project work, and study tours etc. “How to get/can get the best education loan from the bank in India?”

3. Axis Bank

Axis Bank provides loans to students for technical or professional courses, job-oriented courses to study in India and abroad.

Features of Axis Bank Student Loan:

• Simple documentation
• Quick loan disbursement
• Easy repayment option
• Expenses include tuition fees, hostel fees, purchase of books, school supplies etc.
• Loan amount can go up to Rs 75 lakh
• Loan tenure: 10-15 years
• Interest Rates: 13.70% – 15.20%
• Processing Fee: Nil up to Rs 10 lakh.
• For more than Rs 20 lakh the difference is 0.75% of the loan amount + GST (non-refundable fee)
• Door-step service

4. HDFC Bank

Features of HDFC Education Loan for Overseas Education:

• Assistance covers 100% of the entire cost of education with no upper limit on collateral.
• Loans for over 950 professional courses at approved universities in 36 countries.
• Expenses covered include additional expenses for examination, purchase of books, equipment, computers, uniforms, etc.
• Processing Fee: Up to 1.5% of sanctioned amount + taxes
• Duration ; Loan tenure up to 15 years
• Interest Rates: 9.25% – 13.52%
• Minimal and simple documentation
• Door-step service and web-enabled billing

Conclusion (How to Get Education Loan Online)

“How to get/can get education loan from Bank? Best Education Loan in India?” If you repay the loan on time without any default, it also makes it easier for you to get home loan, car loan etc. in future. The cost of education has been increasing recently and the option of education loan seems to be the best solution. Education loan is a loan that students apply for to complete their studies and meet their financial needs. Many banks in India offer education loans at competitive interest rates to help students.

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