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  • Chennai Education Loan

    Chennai is home to world-class educational institutions in nearly every field of interest. Today, with the rising cost of education, an education loan is often a necessity to make your dream course a reality. With attractive interest rates and helpful features, these education loans are a boon for students and their families in Chennai, ensuring that a bright future is possible. Education loans can be availed from most of the leading banks and Non-Banking Financial Companies (NBFCs) so it is important to compare the different interest rates and features in order to choose the one that is just right for your requirements.

    Higher Education in Chennai

    Higher education in Chennai benefits from the numerous reputed state universities, deemed-to-be universities, autonomous institutes, colleges affiliated to universities, and constituent colleges of universities in the state of Tamil Nadu, of which Chennai is the capital city.

    Courses are offered in the arts and sciences, management studies, engineering, and medicine, law, humanities, music and the arts, education, veterinary sciences, fisheries and aquaculture, and agriculture.

    Some of the leading educational institutions in Chennai are:

    • Indian Institute of Technology Madras
    • Madras University
    • Anna University
    • Madras Christian College
    • Loyola College
    • Stella Maris College
    • Vellore Institute of Technology
    • Madras Medical College
    • Stanley Medical College
    • Madras School of Art
    • Madras Veterinary College

    Banks Offering Education Loans in Chennai

    Some of the leading financial institutions that offer education loans in Chennai are the following:

    Bank Interest Rate Tenure (excluding moratorium period)
    State Bank of India 9.30% p.a. onwards Up to 15 years
    HDFC Bank 9.40% p.a. onwards Up to 15 years
    Axis Bank 13.70% p.a. onwards Up to 20 years
    ICICI Bank 10.50% p.a. onwards Up to 12 years
    South Indian Bank 7.70% p.a. onwards Up to 15 years
    Canara Bank 6.90% p.a. onwards Up to 15 years
    Tamilnad Mercantile Bank 10.45% p.a. onwards Up to 15 years
    Bank of Baroda 7.70% p.a. onwards Up to 15 years
    Federal Bank 10.05% p.a. onwards Up to 15 years
    Union Bank of India 6.80% p.a. onwards Up to 15 years

    Courses and Expenses Covered by an Education Loan

    The courses covered under education loans will depend on the bank but generally, it is as given below:

    Approved graduate, post-graduate degree courses, or post-graduate diploma courses or vocational training courses that are by colleges or universities that are recognised by the state and central government, UGC, AIBMS, AICTE, ICMR, etc.

    The expenses covered by an educational loan differ from bank to bank but the major ones are the following:

    • Fees payable at the college and hostel
    • Fees for examinations, laboratory, and library
    • Purchase of uniforms, books, instruments, equipment, etc.
    • Expenses related to thesis work, project work, study tour, etc.
    • Purchase of computer/laptop at reasonable cost if applicable for the course
    • Insurance premium for a student borrower
    • Refundable deposit, caution deposit, building fund, etc.

    Documents Required to Apply for an Education Loan in Chennai

    The documents required to apply for an education loan in Chennai are the following (which may differ according to the bank):

    • Loan application form, duly filled in
    • Letter of admission
    • Statement of cost of study
    • Student's PAN card
    • Student's Aadhaar card
    • Parent's or guardian's PAN card
    • Parent's or guardian's Aadhaar card
    • Proof of residence: Utility bills, passport, or driving licence
    • Proof of identity: Aadhaar card, passport, driving licence, or other photo identification
    • Proof of income of the co-borrower, parent, or guardian: Form 16 or salary slips
    • Bank account statements of the last 6 months of the co-borrower, parent, or guarantor
    • IT returns or IT assessment order of the last two years of the parent or guardian or co-borrower if an IT payee
    • Statement of assets & liabilities of the co-borrower, parent, or guardian
    • 2 passport size photographs

    What to Look for when Applying for an Education Loan

    An education loan is an important factor in the achievement of the degree or diploma of your choice. It is also a financial obligation that can last for a couple of years. For this reason, it is important to consider some important factors when applying for an education loan such as:

    Eligibility criteria: This varies from bank to bank, but it is important to make sure that the course you want to apply for is eligible for the loan. Along with this, there are other criteria such as income, collateral, etc. that needs to be looked into.

    Interest rate: This may be the most important aspect as it will determine how much you will pay every month as the Equated Monthly Instalment (EMI)

    Repayment Tenure and Moratorium: Most banks extend a moratorium period with the loan repayment tenure beginning at the end of that period. If you want a longer repayment tenure to pay back your loan, make sure that the bank's maximum repayment tenure fits your requirements.

    Loan amount: There is a maximum limit for all education loans so you need to make sure that you apply for a loan that will cover all your course-related expenses.

    Special interest rates or schemes: Keep an eye out for special interest rates or schemes that you could be eligible for which would help reduce the EMI amount for you in the long run.

    The best way to make sure you apply for the right education loan is by comparing loans, interest rates, and features from different banks which you can easily do online as well as offline.

    How to Apply for an Education Loan in Chennai

    You can apply for an education loan in Chennai in two different ways:

    Online: With most banks having an online presence today, online applications can be done on the bank's official website. Depending on the bank, you can leave your contact details on the form and will receive a call back from the bank's representative.

    Offline: You can also submit your education loan application directly at the bank's branch closest to you along with the required documents.

    FAQ's

    1. Should I pay the EMI during the moratorium period of an education loan?

      No, you need not pay the EMI although you can pay the interest component of the loan if that is an option given by the bank.

    2. Is collateral required to be paid for education loan in Chennai?

      This would depend on the quantum of loan and the bank, but usually a collateral is only required for an education loan in Chennai if the quantum of loan exceeds Rs.7.5 lakh.

    3. How much time will it take for an education loan in Chennai to get approved?

      The time taken for approval of an education loan depends on the bank, although the average time required is usually approximately 15 days.

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