In this article we are telling the students how they can get the Education Loan besides the complete Procedure, Conditions, Documents required etc. We have browse through the websites of various banks for the answers.We hope that this article shall help a bit.
All the students have some dreams. And they must have. They want to get higher education from the elite institutions of the country. And they must as there should not be any clipping of your dream-wings.
There are students who can afford to pay for costly higher studies but there are more who can't. They see their dreams dying owing to the crushing poverty. Their hapless parents can't afford such huge funds. Consequently they have no choice but to compromise with their career.
They choose the cheaper courses from not-so-good institutions. And ultimately they get smaller jobs with meager salaries. On the other hand, their well-off counterparts after doing courses from the premier institutes get jobs of CEOs/ Managers etc in good companies. Why this compromise ? Why to lag behind in this race of career making. And why not applying for Bank Education Loan ? They are after all for the intelligent need students.
Who can apply ?
The students who have cleared the Admission Related procedures of some good institutes can apply. The institutes must be good, we again emphasize. The reason is that before giving loans banks make sure whether the candidates have the returning capacity or not.
Either the parents or the students themselves after doing the courses must be able to return the loan. So banks give loans to those students who are doing good professional courses such as Engineering/ Medical Courses/ MBA etc from good institutes such as IIT/ IIM-B/ AIIMS etc. The loan can be for Graduation Level/ Post Graduation Level/ PhD / Research Work and similar courses.
How much loan one can get ?
The amount of loan depends upon the nature of course/ institution you have to be linked with. For engineering courses it may be 5 to 10 lac, for medical courses it can be up to 50 lac and for PG Programmes it can be somewhere 10 lac or above.
Initial step to get Education Loan -
Almost all the banks provide Education Loan. But before applying, check the conditions of at least three or four good banks. Compare them and then move to another process.
Make a visit to the Bank in person or apply it online -
You must personally visit the bank from where you want loan. Meet the competent authority there and tell him your need. Get Application Form there or you can also apply online. But before that read the following information.
Check the Documents required -
- They will need any one of the following ID Proofs - Voter ID card, Driving License, Pan Card, Pass Port, Govt Dept ID Card.
- You will bring Form 16 with Recent Salary Certificate or Recent Salary Slip with Deductions
- You need to bring Proof of Residence for which you can bring anyone of the following documents -
- Electricity Bill/ Mobile or Telephone Bill/ Credit Card Statement/ Existing House Lease Statement
( They must be latest)
- Last 6 months' bank statements/Pass book
- Copy of Admission Letter of the Institute along with the Fee Structure
- Mark Sheets of 10th/12th/ Graduation etc.
- For courses overseas, Insurance is must.
Other Major Things you must require for Education Loan -
1. Co-applicant ( Parents / Spouse/ Siblings)
2. There is the need of Third Party Guarantor for loans between 4 to 7.5 lac.
Note - For the payment below 4 lac, there is no need of Guarantor.
3. There is the requirement of collateral for the loan more than 7.5 lac.
When the students have to repay the loan ?
The Repayment shall begin 6 months to 1 year of the completion of the course. If the candidates are abroad, the concerned bank shall recover loan from the co-applicants.
Rate of Interest on loans for Education -
The interest rates on the loan amounts persists from 11.75 % to 14.75 % depending upon the loan taken and Institutes where the candidates is seeking admission.
For the elite institutes, banks offer a discount of 25 basic points. Public Sector banks also offer the same discount for female candidates.
How does the banks deal with the loan defaulters -
The bank shall borrow it from the co-applicants ( guarantors). This default in payment will affect the credit history of both the students and their co-applicants. The bank can take legal actions against the defaulters.
All the banks such as SBI/ HDFC/ OBC ? PNB/ AXIS etc provide Education Loan.
Final Words - The conditions for giving Educational Loans keep changing from time to time. We do our best to update our post with the latest changes. Still we advise you to visit the concerned bank or the official website of it for more latest updates.
You can put your queries related with the bank loan in the comment box below. We shall try to give you the satisfactory solution.
Thanks for your visit.