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What is Education Loans ? |
Education loans are term loans offered to deserving students pursuing higher education either in India or abroad. All employment generating courses are eligible for education loans.
Eligible Courses:
Graduation/ Post graduation/Professional course in any stream Any other course approved by Government.
Maximum Amount of Student Education Loans:
The amount of educational loans varies in different banks. Generally the maximum educational loan granted is Rs. 10 lacs for studying in India and a maximum of Rs. 20 Lakhs for studying abroad.
Expenses of Education Loans:
Banks and other institutions may have different criteria for selecting as to what constitutes the education expenses. A few common expenses covered under education loans are as follows:
- Tuition fee payable to college/school
- Examination/library/hostel charges
- Travel expenses
- Purchase of books/equipment/uniform
- Cost of two wheeler (Optional)
Repayment of the loans can be done by Equated Monthly Installments EMI. It generally commences after one year of the completion of course or six months after securing the job. The time period can vary depending on the policies of individual banks.
Interest on Education Loans:
The interest on education loans varies from bank to bank and also the prevailing market rate. The rate of interest can increase or decrease with respect to the amount of loans required.
Process of Obtaining Education Loans:
Education loans forms are available at bank premises. Online forms are also available for ease of the clients. Generally no processing fee is charged. A deposit can however is required sometimes, which is adjusted later on.
Documents Required for Education Loans:
1. Completed Education Loans Application Form
2. Original mark sheets of last qualifying examination
3. Proof of admission scholarship, studentship etc
4. Prospectus of the institute containing schedule of expenses for the specified course
5. Passport size photographs
6. Borrower’s Bank account statement for the last six months
7. In case the borrower in an income tax payee, Income tax assessment order, of last 2 years
8. Brief statement of assets and liabilities, of the Co-borrower , if any
9. Proof of Income (i.e. Salary slips/ Form 16 etc) , if any
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