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 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:
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||6.70% 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||8.00% p.a. onwards||Up to 15 years|
|Canara Bank||7.30% p.a. onwards||Up to 15 years|
|Tamilnad Mercantile Bank||10.45% p.a. onwards||Up to 15 years|
|Bank of Baroda||7.15% p.a. onwards||Up to 15 years|
|Federal Bank||10.05% p.a. onwards||Up to 15 years|
|Union Bank of India||7.20% p.a. onwards||Up to 15 years|
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:
The documents required to apply for an education loan in Chennai are the following (which may differ according to the bank):
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.
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.
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.
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.
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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