All About Student Loan
Getting 85% marks for admission in post graduate courses is the one great task but then it can get difficult to buy a personal computer with the college fees and other expenses of higher education. But today, Student loans are easily available from many banks and financial institutions facilitating many students to pay for higher education.
Students can look for Education Loans to tackle with graduation expenses, post graduation expenses and professional courses from government approved institutes. This loan covers various expenses like college fees, school fees, hostel fees, and library and book charges, computer charges that are vital for the fulfillment of the courses.
Determining a loan amount:
- The maximum amount that is provided to the students in Education Loan varies from Rs 10 lakhs to Rs 20 lakhs for studying in India.
- For getting higher education in Abroad, lenders provide loans up to Rs 30 lakhs to the students.
Whole loan amount is decided upon the student’s course type and family’s annual income. Some of the banks provide loans to the female students with lower rates of interest.
Eligibility for Student Loan
The eligibility criteria include Indian nationality, age, enrollment information, course period, etc. The age for students is between 16 to 35 years.
Repayment of the loan does not have to be made quickly. Students can begin returning their loan after course completion. The repayment period could be anywhere between 5 – 8 years post completion of course. In case of failure to complete the course, he can explore a 2 years extension to complete the course.
Interest & Fees for Student Loan:
Interest rates depend upon two factors such as Loan Amount and the type of course. It varies between 9.25 % – 15 %. Banks and other institutions charge a processing fee from 0.5 % to 2.5 % of the total amount of the loan.
Some of the security amount or a third party guarantor is required depending upon the loan amount. A co-applicant is a third party guarantor such as parent, sibling, in-laws, spouse or any other close relative. If you are opting for a loan of below Rs 4 lakhs, these do not require any of the security token. For a loan amount of more than Rs 4 lakhs, one will have to provide a security token such as house, property, or any other deposit.
Documents required for Student Loan:
Students are required to submit some of the important documents such as Identity Proof, age proof, identity proofs and photographs. He will also need to submit co applicant’s documents such as relationship proof, address proof. You are also require to submit some of the admission letter with free structure. In case of foreign studies, one will not have to provide documents like Visa papers, GMAT score, Travel papers and many more.
When you plan for an education loan, try not to hold your loan on just at lower rates of interest. Traditional lenders may provide loans at low interest rates, but they can charge high processing fees. Some of the private institutions offer loan in a very short interval of time.
Leading Education Loan Providers
- SBI Education Loan
- HDFC Education Loan
- CREDILA Education Loan
- AXIS Bank Education Loan
- ICICI Bank Education Loan
- IDBI Education Loan
- Bank Of India Star Education Loan
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