"My experience was good with DHFL avanse during availing the education loan . They disbursed the loan within 15 days.Rate of interest charged was nominal. The documentation process and the way of approach was excellent.Overall, it was a good."
About Education Loan:
When it comes to all the building blocks that form a complete and successful life, nothing is as important as quality education. However, education in India, at least the commonly perceived ‘quality education’ as imparted by acclaimed and influential educational institutions, is decidedly costly and not easily available to everyone- especially those who deserve it based on merit alone. Thus, education loans are vitally important. A barebones explanation for an education loan is thus, ‘funds offered by financial institutions to meritorious and/or deserving students so that the latter can pursue their basic/higher education, in India or abroad’. Almost all banks in India offer education loans, and the demand for it has remained stable with the Indian student community.
Why Choose Education Loan?
The question should ideally be, why choose an education loan over a personal loan, or the money accumulated in your savings account? The versatility and advantages of education loans are listed below-
Features & Benefits of Education Loans:
When it comes to a complete education loan, the features and benefits offered are the designated deal makers. Commonly, the following conveniences are offered as part of the education loan-
Banks, in their individual capacity, will offer a whole suit of exclusive features and benefits. Check the same before zeroing in on the one that best complies with your requirements.
Why Apply for an Education Loan on BankBazaar?
BankBazaar is a user friendly portal that is dedicated to the comparison of various banking products, including Education Loans. A helpful resource, BankBazaar allows visitors to better understand this loan, its pros and cons, as well as the various banks that offer them in India. Why BankBazaar? The reasons are as follows-
100% Hassle Free- Save on time and effort as you ditch legwork and fire up your computer to check out the best education loan options. The process is extremely simple, distraction free and incredibly quick.
Apply Online- Post the comparison, use the simplistic BankBazaar interface to apply online for your chosen education loan. Kindly note- Currently, you can only apply for Avanse Education Loan on BankBazaar. More options are expected to be available soon.
Know it All- From important details such as education loan eligibility, documentation and the basic terms and conditions, to informational bytes that relate to the latest happenings across the education loan landscape in India, BankBazaar is a treasure trove of helpful information.
Always With You- Have a query or concern? BankBazaar’s brand of superior customer support is always just a phone call, email or chat-box away.
How to apply for an education loan on BankBazaar?
Applying for a suitable education loan (currently Avanse Education Loan is available) on BankBazaar is a very interactive and simple process. The following steps list this process clearly-
Comparing Education Loans from Top Indian Banks:
|Lender.||Loan Amount/ Interest Rate.||Max. Loan Amount||Repayment Tenure|
|State Bank of India (Base Rate- 9.70%)||Upto Rs.4 lakhs / 13.35% p.a (base rate + 3.65%) Between Rs.4 lakhs- Rs.7.5 lakhs / 13.60% p.a(base rate + 3.90%) Above Rs.7.5 lakhs / 11.60% p.a (base rate + 1.90%)||Studies in India- Rs.10 lakhs Studies Abroad- Rs.30 lakhs||5-7 years|
|Axis Bank (Base Rate- 9.95%)||Upto Rs.4 lakhs / 16.95% p.a (base rate + 7.00%) Between Rs.4 lakhs- Rs.7.5 lakhs / 17.95% p.a (base rate + 8.00%) Above Rs.7.5 lakhs / 15.95% p.a (base rate + 6.00%)||Studies in India- Rs.10 lakhs Studies Abroad- Rs.20 lakhs||Maximum 7 years|
|Punjab National Bank (Base Rate- 10.00%)||Upto Rs.4 lakhs / 12.00% p.a (base rate + 2.00%) Between Rs.4 lakhs- Rs.7.5 lakhs / 13.00% p.a(base rate + 3.00%) Above Rs.7.5 lakhs / 12.50% p.a (base rate + 2.50%)||Studies in India- Rs.10 lakhs||Loans upto Rs.7.5 lakhs : 10 years Loans above Rs.7.5 lakhs : 15 years|
|Avanse Education Loan (Avanse Base Lending Rate- 11.50%)||Calculated individually based on course being pursued and the accompanying cost.||Minimum- Rs.50,000 Maximum- No Limit||Minimum Repayment Tenure- 12 months Maximum Repayment Tenure- 120 months|
Top Banks Offering Education Loans in India:
The following banks are listed at the top of their class when it comes to education loans in India-
SBI Education Loan-India’s largest public sector bank is also a firm favourite when it comes to education loans. Offering upto Rs.10 lakhs for studies in India and Rs.30 lakhs for studies abroad, the SBI Education Loan is a full-fledged offering with customer friendly features and benefits. Some of the key highlights of the SBI Education Loan are as follows- friendly interest rates, coverage of a wide spectrum of educational courses in India and abroad, immensely student friendly terms and the backing of SBI’s legendary name and reliability.
Axis Bank Education Loan- India’s third largest private sector bank is a strong contender when it comes to student friendly loans for education. The Axis Bank Education Loan is a full featured offering that is characterised by friendly interest rates, quick turnaround times, loan amounts of Rs.10 lakhs for studies in India and Rs.20 lakhs for studies abroad, a comprehensive listing of funded educational courses (in India and abroad) and Axis Bank’s famous brand of customer support and banking innovation.
HDFC Education Loan- India’s fifth largest bank is a veteran when it comes to offering comprehensive and student friendly education loans and also commanding absolute devotion towards its loan schemes from students aspiring for higher education in India and abroad. Competitive interest rates, a whole range of student centric options and features, funding for an elaborate list of educational courses in India and overseas, alongside HDFC’s constant popularity and new-age banking methodologies, are some of the fundamental reasons why HDFC must be on your scanner when talking of good education loans.
Avanse Education Loan-The first thing that hits you about education loan offerings from Avanse is the sheer number of options on offer. Loans for studies in India, abroad, executive education, pre-admission loans, pre-visa disbursement loans and fast track loans are popular offerings, while a number of student friendly terms and conditions make the aforementioned loans very popular. Avanse Education Loan is focussed on top notch customer service that is backed by an interactive and robust loan processing and disbursal system that will ably match the best on offer in India.
Education Loan Interest Rates
Many factors determine the attractiveness and acceptability of any standard loan product, a competitive interest rate being one of the more important factors in this regard. In India, education loans usually command an interest rate from anywhere “Between” 12.00 % to 16.00 %, depending on the bank’s base lending rate and other factors. The base lending rate for banks in India, as directed by India’s apex bank, the RBI, is around 9.00- 10.00%. Some private education loan lenders/ financial institutions offer interest rates that are based on their own base lending rates (often very dynamic) and calculation of interest rates are accomplished on a case-to-case basis.
Education Loan Application Checklist:
|No.||Things to Do.||Yes/No?|
|1.||Confirm upon applicable educational course (University, location, costs, etc.)|
|2.||Compare all available educational loans on BankBazaar.|
|3.||Basic Documents to Keep Ready- Address, Age and Nationality Proof.|
|4.||Attested Marks Cards- Starting from SSLC/10th Std.|
|5.||Admission Letter as issued by the admitting School/College/Institute.|
|6.||All essential documents issued by the admitting School/College/Institute, including prospectus, breakup of fees, etc.|
|7.||Letter from admitting School/College/Institute that stipulates non-availability of hostel facility.|
|8.||Income Proof- Bank statements (6 months), Salary slips (3 months) & ITR of Parent/Guarantor.|
|9.||Passport sized photographs (2 nos. each) for applicant, guarantor and parent.|
|10.||Studying Abroad- Employment Contract.|
|11.||Studying Abroad- Entry Permit (Validity, issuing authority etc., must be noted).|
|12.||Studying Abroad- Admission letter & I-20 form from Foreign Institution.|
|13.||Studying Abroad- Passport & Visa.|
|14.||Documents confirming upon the security/collateral.|
|15.||Substantiating documents if immovable property is offered as security.|
|16.||Affidavit confirming that NO education loans have been availed or defaulted on with regards to other banks or financial institutions.|
|17.||If Employed- Resignation letter, Acceptance of Resignation letter or Sanction letter for study leave.|
How to calculate EMI interest rates for education Loans?
The generally tedious task of calculating Equated Monthly Installments (EMI) on your subscribed education loan is easily accomplished (minus the sweat) with the friendly Education Loan EMI Calculator on BankBazaar. This useful tool offers the following advantages,
Education Loans From Other Banks:
Any of the following courses, as offered by recognized universities, is eligible for an education loan in India-
Generally, there are no restrictions. Most banks and financial institutions do not impose this rule. However, certain lenders do mark an age limit spanning from 16-35 years.
Not immediately. However, after you start repaying, you are free to deduct the loan interest amount from your total income when calculating tax.
The applicant is expected (and mandated) to submit his/her progress reports periodically. The progress reports could be mark sheets or a suitably attested letter from the applicant’s school/college.
Education Loan Eligibility:
Listed herein are the basic requirements that qualify your application for an education loan,
Note- This above listing is a basic eligibility requirement. Banks, in their own capacity, may request for more documentation and proof.
Documentation Required When Applying for an Education Loan:
When applying for the loan, the lender in question will ask for a number of documents that prove your eligibility in terms of your student status, family income, ID and address proof, course applied for, and other such factors. Listed herein is the basic list of required documents-
As noted, banks in their individual capacity can request for additional documents. Submission of the same, in their required format, is crucial for the smooth sailing of your application form.