"Apply for education loan in India at attractive interest rate from banks like SBI, Axis, IDFC bank, etc. Know the eligibility, process to get an education loan easily."
Published: 26 October 2023
Updated: 26 October 2023
Education Loan is a financial aid which is given to the people who are willing to do higher study but are lacking money. Education loan is a great way to ensure that you will never be out of money. In the world we are living in today, education holds the top priority. If you are educated many opportunities will knock on your door. But life makes us stuck at the time when we lack money for education. At such times it is good to apply for an education loan.
Education Loan can either be secured or unsecured which means either a borrower can apply for an education loan by pledging an asset or can directly apply for an education loan. In the secured education loan, you must pledge an asset in the bank. The interest rate for the secured education loan is usually low but your collateral will be pledged for a particular time period in the bank.
However, in unsecured education loans, there is no security required to get the education loan. A person who is applying for an education loan should have a good CIBIL Score and must provide a valid reason with relevant documents. Also, the additional feature of the education loan is that the borrower needs to repay the loan after the completion of the course. The article below will help you understand the education loan deeply.
Whether you are applying for an education loan online or offline education loan comes with certain features. Mentioned below are the features of unsecured education loans in India.
Education loan covers a wide range of courses and colleges in numerous countries
The interest rate for education loans generally ranges between 10.50% to 14%
Students can apply for this loan with the sign of a co-applicant
These loans come without a holiday period
The repayment period of the loan usually starts after the completion of the course.
Mentioned below are the benefits of education loans that can be taken by any individual. Consider these points if you want to take education loans.
The financial aid of around Rs.40 lakh to Rs.50 lakh can be availed by the student without pledging any security.
Education Loan can be availed before admission to the course
In the education loan EMIs not required to be paid in the moratorium period
Many Banks and NBFCs provide 100% finance for higher studies
Students can also avail of top-up loans
No pre-payment penalty on education loan
A flexible repayment option is an additional feature of an education loan.
Quick and paperless process
The detailed eligibility criteria for education loan is mentioned below. If you need an education loan then go through the eligibility criteria for an education loan.
The income of the borrower should be above Rs. 4 lakh.
The CIBIL Score of the co-applicant should be above 700.
The GRE Score of a student should be above 300 (Only for the US).
IELTS score should be above 6 or 6.5 bands if a student is applying for countries other than the US.
Parents of the applicant must have their own residential house
Education Loan cannot be availed for the following courses:
Pathway course
Foundation courses
Integrated courses
UG degree or certificate courses
MBBS degree
Pilot Aviation programs
Mentioned in the list of documents that you require to apply for an education loan online or offline. It is good to keep these documents handy to process the education loan easily.
Applied University offer letter mentioning tuition fees
Academic documents of a student
Employment documents of the co-signer or the borrower
KYC documents of both applicant and co-applicant
Address proof along with electricity bill
In addition to the above documents, there are other documents that a salaried person and a self-employed person are required to present while applying for an education loan. Mentioned below are the list of such documents.
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Documents required for Education Loan for Salaried Person |
Documents required for Education Loan for Self-employed Person |
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Mentioned below is the process of applying for an education loan. So if you are thinking about taking an education loan then follow the steps.
1. The first step is to search for lenders providing Education Loan Online.
2. Shortlist a few lenders and make a list of terms and conditions associated with an Education Loan.
3. Apply for Education Loan Online from the best lender.
4. Keep all the documents handy and enjoy smooth approval of education loans.
5. Get instant disbursal of education loan in your account.
Mentioned below are the list of top banks offering education loan.
The above article is a guide for you if you need an education loan. The education loan starts from 10%-14% P.A. Get all the documents and apply for an education loan today if you are thinking of applying for an education loan. If you are thinking about higher education then it is good to apply for an education loan. You can also apply for a personal loan for education purposes through My Mudra. This can also be an alternative solution for you if are not qualified for an education loan.
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