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Education Loan for Engineering Students in India Overview

In India, engineering has always been a popular stream of study. It comes as no surprise that India has some of the best engineering colleges in the world - both private and government-owned. One sixth of Indian students generally enroll in engineering and technology related courses. With more than 700 multi - disciplined Universities and over 35,000 affiliated colleges with over 20 million students, Indian higher education is a vast system. Most of the Indian Banks offer education loans for engineering students at affordable interest rates.

Features of Education Loan for Engineering Students in India:

  • Since engineering is a popular course in India, availing education loan for engineering courses like B.E, B.Tech and M.E is relatively easier.
  • Indian nationals aged between 16 years to 35 years can avail an education loan from any lender for pursuing graduate and post - graduate courses in engineering.
  • The applicant must have a confirmed admission in a university or a college recognized by the UGC, Government, AICTE or such board.
  • The education loan will cover exam fees, library fees, admission costs, tuition charges, accommodation charges and other reasonable expenses required to complete the course.
  • Education loan repayment will start only after the course is complete. The entire loan amount, in any case, has to be repaid before the tenure which is usually anywhere between 5 years to 7 years.
  • Generally, the interest rate would be minimum if the amount is lesser than Rs.4 lakh. However, interest rates vary with bank and are subject to frequent change.
  • Many banks offer concessions in interest rates for female students who have secured admission to a recognized engineering college.
  • Most of the banks do not demand security for education loan amount up to Rs.4 lakh. Documents of assets like gold and houses can be pledged as security for a home loan.

Education Loan for Engineering Courses – Eligibility:

An applicant must satisfy the following eligibility conditions if he/she wishes to apply an education loan for an engineering course in India.

  • The applicant must be in the age bracket of 16 to 35 years and should be an Indian resident.
  • The applicant must have secured admission to a graduate or postgraduate engineering course in college or universities recognized by the UGC, Government, AICTE and other such institutions.
  • A collateral security might be insisted based on the loan amount.
  • The applicant must apply for an education loan with a co-applicant. The co-applicant can be a parent, guardian or spouse in case the applicant is married.

Education Loan for Engineering Courses - Documents required:

The applicant will be required to submit the following documents while applying for an education loan to fund the engineering education,

  • Admission Letter
  • Detailed cost break-up of the engineering program
  • Duly filled application form with photographs
  • KYC documents
  • Guarantor’s bank account statement for the last six months
  • Guarantor’s IT Return for the last six months
  • Statement of assets and liabilities to be presented by the co-borrower
  • Proof of income from the parent or other co-borrower
  • PAN card and Aadhaar card
  • Academic documents like mark sheets and pass certificates

Education Loan for Engineering Students in Bangalore:

If a student has secured admission to a recognized engineering course in a college or a university in Bangalore, most of the national and private banks in India will be ready to fund the cost of education including hostel charges, admission costs and other associated costs. For students willing to pursue B.Tech/B.E/M.E courses in any engineering college in Bangalore, based on the repaying capacity and the course selected, students will be offered a maximum education loan of Rs.10 lakh for pursuing engineering education in India. Some of the popular banks that offer education loan for engineering students in Bangalore are Bank of Baroda, HDFC Bank, Bank of India and Federal Bank.

Education Loan for Engineering Students in Tamil Nadu:

Tamil Nadu houses some of the best engineering colleges in the country including CEG and IIT Madras. Students who have obtained admission to an engineering course in a recognized technical university in Tamil Nadu can get an education loan without any hassles. Select engineering colleges also have partnered with banks to provide education loans easily. In Tamil Nadu, the fees for undergraduate engineering courses may vary between Rs.4 lakh to Rs.12 lakh for four years. Also, in some cases where the student has secured admission through management quota in an engineering college in Tamil Nadu, certain banks may offer education loans. Some of the most preferred banks for education loans for engineering students in Tamil Nadu include the State Bank of India, Punjab National Bank, Central Bank of India and Canara Bank.

Education Loan for Engineering Students in Delhi:

The State Government of Delhi has come up with a unique scheme wherein students whose parents do not have property as a guarantee to avail loan will be offered educational loan up to Rs.10 lakh. As per this scheme, students who have cleared class 12 will be eligible for the education loan. Apart from this State Government initiative, students who have secured admission to a recognized engineering college in Delhi can avail an education loan easily for up to Rs.4 lakh. The loan quantum will be decided based on the repayment capacity, college and the course selected by the candidate. Education Loan for engineering students in Delhi covers all costs including admission costs, fees payable to the hostel, books & equipment costs and project costs required for course completion.

Also, if a student obtains admission through the management quota in any engineering college in Delhi, an education loan may be considered merit-based.

Education Loan for Engineering Students in Mumbai:

A student who has secured admission to undergraduate engineering courses like ke B.E and B.Tech and post graduate courses like M.E in Mumbai in a recognized engineering college will be able to get an education loan easily, students will be required to submit certain documents after applying, and the documents will be verified by the bank. For engineering studies in India, most banks offer loans up to Rs.4 lakh at a nominal interest rate.

If the individual has obtained admission to an engineering college under management quota, certain banks may consider offering a loan based on the merit status of the student. The tenure offered for education loans for engineering courses is five to seven years. The students can start servicing the EMI after the moratorium period or after they secure a job.

Vidya Lakshmi portal for Education Loan:

The Vidya Lakshmi portal for the educational portal is developed under the supervision of the Department of Financial Services, the Ministry of Education, and the Indian Banks Association. It has been developed to create a link between students and banks for education loans. The portal is maintained by NSDL e-Governance Infrastructure Limited. Through this portal, the students can apply for and track education loan applications across multiple banks that have partnered with the scheme. This makes it easier for students to access details of loans, apply through the one-stop portal for various educational loan schemes, and check the status of their loan applications. The portal is free for all to use and can be accessed from any computing device from anywhere and at any time with an internet connection.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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