Education Loan In IndiaUncategorized
At some or other time, we all must have thought of studying in India’s or Abroad’s top universities. Or dream of getting our children to study in such big institutions. But did we not take a step back just by looking at high fees of these institutions? We believe there would be a lot of people like this. So today’s article is written to give a solution to this problem. So let’s start the article : Education Loan In India.
We have a lot of success stories of the people, who completed their studies from the best universities and colleges of the world. No big name of top universities of the world has been left untouched on these days by us. Further, few courses in India are asking for much higher fees, on the other side, foreign countries are providing the same courses under better fees with good quality also, one of the best example of this is M.B.B.S., these courses are comparatively cheaper in countries like Russia, Nepal etc. So a lot of students used to fly these countries to complete their such professional degrees.
Further,the sad part is, we have seen multiple examples of the brilliant students, who left their studies or not able to pursue better professional courses from top universities or colleges of the India or abroad, just because of lack of money to pay their fee.
Henceforth, we decided to write this article for those aspirants, who drop their plan or dream, just by checking fee structure of top universities or colleges like MBA from IIM, B.Tech from IIT, MBBS from different top colleges and MS or other courses from Indian as well as foreign universities. In this article, we will tell you how you can pursue B.tech, MBA, MS etc professional courses from best institutions without thinking even once for the hefty fees asking by these colleges for the course. You just have to think about your studies. Rest will be managed by the financial institutions, even without looking or asking for any kind of security or collateral. Yes, you read it correctly, without security.
Education Loan In India becomes must, specially when one is looking for professional courses like B.Tech (B.E.), M.Tech (M.S.), M.B.B.S,B.C.A, M.C.A, M.B.A. etc. Further it is very easy to get these loans, if you have proper knowledge and information about the same. You can visit the nearest Bank’s Branch with your required documents and apply for education loan. So here we will discuss point wise and in easy manner to make it easy to understand.
- 10th and 12th Mark sheet and Passing certificate.
- Qualifying exam result card.
- Allotment letter for college by Qualifying exam conducting authority (IIT, IIM, NEET, other state boards) or Offer letter by foreign universities on the basis of different exams conducted by them.
- Prospectus of College allotted.
- Fee structure and payment module.
- Receipt of Advance amount paid so far by student.
- K.Y.C Document (Aadhar & PAN Card Copy) of Student, Parents and Guarantors (If security is provided by third party i.e. Relative etc).
- Income Tax Returns or Form 16 for Last three Years (Optional).
- Photographs of Student, Parents & Guarantor.
- Reservation certificate (If applicable).
Process for Education Loan
- Indian banks are accepting application through both modes: Online mode as well as offline mode. You can choose in which way you are comfortable.
- At the end you have to visit the Branch, not only for banks requirement but for your future requirements too.
- So here we will discuss the conventional method for the education loan.
- You have to visit Bank’s Branch and submit the application form duly filled along with the stated documents in the application form (Which generally same as given at point 1 in this article). Once you submitted all the required documents, Bank’s will cross check your all documents, like K.Y.C., Education background, Your performance in 10th & 12th Class, marks obtained in different exams , Bank statements etc and examine your CIBIL score to check your credit history.
- If all the documents found in order, your loan will be sanction in no time. Generally the full procedure takes 7-15 days.
- These days, Bank’s organize loan camps in colleges during the counseling time, after result declaration or finalization of colleges and also finance the full college fee (which includes hostel fee also) on the spot only.
- Even some Banks have open their Branch in campus also for the benefits of the students studying there.
- Different Banks have different quantum of loan amount for education loan.
- This could be even as big as Rupees One Crore or more (e.g. in State Bank of India it is around Rs. 1.5 crore).
- Usually Banks easily provide loan up to 75 Lac, which is quite enough to pursue any professional course in India or in Abroad.
- So, you don’t have to bother about the high fee structure of the big institutions.
- Bank’s disburse the loan as per the fee deposit schedule and structure provided by the college.
- Also, mentioned in the prospectus (In some colleges, Fee Structure has been displayed on notice board from time to time).
- Generally colleges ask for fee on semester basis, however some colleges also take the same on yearly basis too.
- You just have to deposit the margin money (very nominal) part from your side and Bank will remit the full fee through online or offline mode (like in form of NEFT/RTGS or by issuing demand draft or Banker’s cheque).
Different Banks have different quantum of loan amount for education loan, this could be even as big as one crore or more (e.g. in sbi it is around Rs. 1.5 crore). However usually Banks easily provide loan up to 75 Lac. So, you don’t have to bother about the high fee structure of the big institutions.
As per the government policy, all education loans under Rupees Four Lakh are not required to be backed with any collateral security, such as property, paper security such as insurance policies, NSC, FDR etc., so any Bank will usually does not ask for the security of loans up to Rupees Four Lakh.
But if you need education loan above rupees Seven lac, than Bank will ask you to provide any security in the form of property, Insurance Bonds, FDR etc., but here is one hidden fact is if you got admission in colleges of repute in India or in abroad like IIT, IIM, XLRI, IISc, IBS, AIIMS, BITS,MIT etc.? If yes, than no Bank will ask for any kind of security. Yes you read it correctly, no collateral security, so you just have to think for passing the big entrance exams and not the big fees. I believe you will definitely love this fact.
Different rates has been offered by different financial institutions, detailed list of R.O.I. is given in the table:
|S.No||Bank Name||R.O.I.*||Tenure||India or Abroad|
|1.||SBI||8.20 % p.a. to 10.20 % p.a.||15 Years||Yes|
|2.||PNB||8.20 % p.a. to 10.20 % p.a.||15 Years||Yes|
|3.||CANARA||10.00 % p.a. to 10.50 % p.a.||15 Years||Yes|
|4.||AXIS||13.70 % p.a. to |
15.20 % p.a.
|5.||ICICI||11.25 % p.a. to 14.60 % p.a.||15 Years||Yes|
|6.||Nainital Bank|| 9.65 % p.a. to |
10.40 % p.a.
*These are only standard R.O.I., for exact rates applicable as per individual Banks scheme can be checked by visiting specific schemes on their websites, links are given below.
Repayment generally starts after 6 months of your job or subject to maximum one year after the completion of course from the university. Or you can understand as repayment tenure will start after Term of course + 01 year (Irrespective of you got job or not)+04 Years. Total tenure considered as tenure of course plus five more years to pay the loan.
So total tenure can be seven to ten years (or even 15 Years), based on the type of course and its tenure. But one more hidden thing is, if someone decided to go for higher studies and not for job, than what will be the repayment schedule and how student will pay as in pursuing higher study, student will not earn anything or that much. So, here it comes, one more surprise, Bank’s will further allow you to go for higher studies and you don’t have to think for your EMI, even that is not all, you can further apply for education loan for pursuing higher studies, bank will reschedule your payment schedule of your earlier education loan, along with new loan for higher studies. Now Happy!!
Tenure : Study period+10 Years
As already discussed earlier, repayment will start after Total duration of course + 01 year (Irrespective of you got job or not). Total loan period (i.e. repayment holiday and repayment period) considered as tenure of course plus five more years to pay the loan.
So total tenure can be seven to ten years, based on the type of course and its tenure. These days even some of the Banks are providing tenure as long as 15 years of repayment period i.e. five years of your study as repayment holiday tenure and ten years to repay the loan. https://sbi.co.in/web/personal-banking/loans/education-loans/student-loan-scheme
Banks Providing Education Loan
Almost all the Bank’s are providing education loan In India, public sector Bank or private sector banks. However you can select them on the basis of the lucrative interest rates offered by them. Banks like SBI, PNB, Canara, OBC, Axis, HDFC, ICICI, Nainital Bnak etc are providing education loans at much loawer rate of interst and on very easy terms and conditions and further process is very easy.
Almost all the Banks are providing education loan in these days, either they are public sector Banks or private sector banks. However you can select them on the basis of the lucrative interest rates offered by them or on the basis of other terms and conditions.Banks like SBI, PNB, Canara, OBC, Axis, HDFC, ICICI, Nainital Bank etc are providing education loans at much lower rate of interst and on very easy terms and conditions, also process to get education loan is very easy in these .
- Government also supporting the education system in india and provides subsidy under different schemes, like study in foreign universities under scheme Padho Pradesh etc.
- Futher if Annual Income of your family is less than rupees four Lac (Certificate regarding earning can be easily obtained from DM office ), one can claim for subsidy of interest and full interest will be reimbursed by the government and henceforth you just have to think about the returning of the principal amount mainly.
- You have to pay interest properly and well in time for the interest applied on your education loan.
- Government every year open the window for claiming the interest from the government, you just have to apply in the Bank for the interest subsidy and further bank will apply the same from government through online process, once the same claim received from the govt you will receive the same in your loan account only.
You have to keep providing upadated status of your results to the Bank and submit the copy of result card copy of semester wise exams.
Here we just give a brief about the education loan and its process in india, for more details you can visit websites of different banks, link of some of them are as follows:
Nainital Bank : https://www.nainitalbank.co.in/english/Naini_Shiksha.aspx
We will also come up with second part (Vidhya Laxmi Portal) of this article soon-Education Loan In India.
You can also send your query to us, we will provide you the best possible solution available.
Thanks for reading.