Different Types of Education Loans in India

Education Loan, different types of education loans in India

When you want financial help for your education or higher education. The education loan includes the cost of tuition, books and supplies, and living expenses while the borrower is in the process of pursuing a degree. 

For the students it is very beneficial. Because it helps them in their studies and build their future.

BENEFITS OF EDUCATION LOAN

  • It is beneficial because it helps to leave your savings undisturbed which will enable you to achieve your long-term financial goals like retirement corpus, children’s marriage, buying a house etc. 
  • It reduces a parent’s financial burden.
  • It covers all your hostel expenses, exam fee, library charges, lab fees. The loan also covers the cost of books, travel expenses as well.
  • The entire interest you pay on an education loan qualifies for income tax deduction.
  • In education loans the borrower gets a Moratorium period during these periods they do not have to repay the loan.
  • In education loans the borrower gets a moratorium period of 6 months to 1 year from the date of completion of the course, this gives the borrower enough time to look for a good job that pays well and save enough to start repayment of the loan. 

TYPES OF EDUCATION LOAN

Education loan is of different types. here we have mentioned all the types of education loan.

UNDERGRADUATE EDUCATION LOAN:

The undergraduateeducation loan is for those students who have finished their secondary education and wish to apply for a three or four year course to enhance their job opportunities. 

GRADUATE EDUCATION LOAN:

The graduate education loan is for the students who wish to pursue advanced degrees or higher education at colleges. 

CAREER EDUCATION LOAN:

If a student is wishing to attend undergraduate career oriented programs at trading and technical schools and colleges across the country then a career education loan is best for them.

LOANS FOR PARENTS:

Some parents are not able to pay tuition fees, living expenses, books, uniforms, and other expenses such as transportation costs of their child. For those parents the parents loan is amazing. This loan helps the parents to meet all the expenses related to their child’s education.

APPLY FOR EDUCATION LOAN

Applying for an education loan is not very tough. You can apply for the loan in some easy steps.

  • You can apply online or offline by selecting the bank from which you want a loan.
  • Get an application form and fill all the details and attach the documents required for the education loan.
  • Submit relevant documents that prove one’s age, income, address and identity. 
  • The lenders will verify the forms and documents.
  • Wait for the approval of the education loan.
  • After approval of the loan the amount will be transferred to your account.

DOCUMENTS REQUIRED FOR  EDUCATION LOAN 

  • Bank statement of last six months.
  • Guarantee form.
  • Passport sized photograph.
  • KYC documents.
  • Copy of admission letter of the Institute along with fees schedule.
  • Mark sheets / passing certificates of S.S.C., H.S.C, Degree courses.
  • Form A2 signed by applicant or co-applicants in case of overseas institute.

ELIGIBILITY FOR APPLYING FOR EDUCATION LOAN 

  • Minimum age required is 18 years.
  • Maximum age is 35 years.
  • Academic record should be good.
  • Pursuing graduate/postgraduate degree or a PG diploma.
  • Parents’ income source should be good.
  • Tangible collateral or guarantor – depending on the loan amount and income source.

BANKS GIVING EDUCATION LOAN

Punjab National BankCanara Bank
HDFC BankIDBI Bank
Axis BankBank of Baroda
State Bank of IndiaAvanse Financial Services

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