Apply for Education Loan
About Education Loan
An Education Loan is a type of loan offered by banks and NBFCs to finance post-secondary education or higher education expenses, including the cost of tuition, books, supplies, living expenses and other related expenses. A student has to pay back the borrowed money after the completion of the degree. However, a six-month period can be given to students to make the repayment even after the completion of the education.
Eligibility for getting an Education Loan
- Students who are a resident of India are only allowed to avail of Education Loan.
- The student should have completed their 10+2 for an undergraduate course or for a postgraduate course degree. An Education Loan is given to students who have completed their 12th Standard.
- The course, whether graduate/postgraduate or PG Diploma should be recognised college or university by the UGC (University Grants Commission)/ AICTE (All India Council for Technical Education)/AIBMS/CMR.
The courses mentioned below are eligible for getting an education loan.
- Courses like ICWA, CFA, CA etc.
- The courses, that are conducted by IIMs, IITs, NID, NIFT, and XLRI.
- Degree/Diploma courses like pilot training, shipping, aeronautical.
- Nursing Degree/Diploma.
- Courses approved by Direction General of Civil Aviation/Shipping/Indian Nursing Council.
- A secured admission from an approved university or college for a Diploma/Degree course.
Documents required for getting an Education Loan
Some of the basic documents are mentioned below that an applicant will be asked to submit while availing of an education loan. In some cases, few more documents may be asked by the lender for that matter.
- KYC documents.
- Mark sheets of 10th, 12th, graduation and entrance exams.
- Admission letter.
- Fee structure.
- Co-applicant KYC and income proof in some cases.
Steps to apply for an Education Loan
Steps to apply for an Education Loan Online
- Visit the official site of the bank from where you like to avail the loan.
- Go to the section of ‘Education Loans‘ and click on ‘Apply’.
- A form will appear which needs to be filled by you to proceed further.
- Fill in all the required details and click on ‘Proceed’.
- Wait for the bank to verify your form and documents (If submitted any).
- The bank will get back to you and keep you notified.
Steps to apply for an Education Loan Offline
- Visit the bank’s branch.
- Inquire about the education loan, its interest rate and repayment tenure.
- Choose the perfect loan which you want to buy.
- Fill in the form provided by the bank and submit the documents required.
- Wait till the bank verify your documents and evaluate the course of study for which you wish to take the loan.
- The bank, after verifying, will get back to you for further procedures.
After following all the steps online or offline, you may be able to get an education loan easily.
How to get Education Loan easily – FAQs
✅ What is the benefit of getting an education loan?
The loan amount of an education loan goes up to 50 lakhs for a domestic student while it goes up to 1 crore for an international student. If applicable, there are at times, a student may get 100% financing of all the expenses for education covering supplies, cost of living, student exchange travel and others.
✅ What is the maximum repayment tenure for an education loan?
The repayment tenure for an education loan can go up to 12 years after the completion of the course. An additional six-month period is given to start the repayment tenure after the completion of the course.
✅ What expenses are covered under an Education Loan?
This is the list of expenses covered under an Education Loan:
- Educational Insititute Fees.
- Tuition, Examination, Library and Laboratory fee.
- Travel expenses for foreign students.
- Books, Equipment, Uniforms.
- Purchase of any electronic item required to complete the course.
- Caution Deposit not exceeding 10% of the total loan.
