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  • Loans for Students

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  • As a student, you can avail various education loans to fulfil your academic needs. There are various banks and non-banking financial institutions (NBFIs) in India that provide education loans to students at affordable interest rates. We will have a look at some of the banks from whom a student can avail an education loan.

    Compare best Loans for Students 2019

    Lender’s Name Interest Rate Loan Amount Tenure
    HDFC Education Loan for Indian Students 9.30% onwards Rs.7.5 lakh onwards Up to 15 years
    Axis Bank Loan for Students 13.7% onwards Rs.50,000 onwards As per the terms and conditions laid down by the lender
    BOI Star Loan for Students 10.4% to 11.2% Up to Rs.20 lakh As per the terms and conditions laid down by the lender

    HDFC Education Loan for Indian Education

    You can avail an educational loan from HDFC Bank to fulfil your various educational needs. The repayment of the loan is very easy, and you are offered a wide range of collateral options as well. Some of the benefits of availing an Education loan from HDFC Bank are:

    • You can avail a maximum loan of up to Rs.10 lakh if you are looking to study in India.
    • For loan amounts up to Rs.7.5 lakh, the maximum tenure is 10 years. For loan amounts higher than Rs.7.5 lakh, the maximum tenure is 15 years.
    • You have the option of securing your education loan by opting for insurance in the form of Credit Protect offered by the lender.
    • You are offered a wide range of collateral options depending on the loan amount availed by you.
    • If the documents provided by you are correct, the bank disburses the loan amount as quickly as possible.
    • You get to enjoy tax benefits under Section 80E of the Income Tax Act, 1961.
    Bank Name Processing Fee EMI (for Rs.5 lakh) Preclosure Charges
    HDFC Bank 1% Rs.43,795 at 9.30% -
    • ACH swapping charges: Rs.500
    • Duplicate repayment charges: Rs.200
    • EMI return charges: Rs.550
    • Loan rebooking: Rs.1,000

    Axis Bank Loan for Education

    You can avail a minimum loan amount of Rs.50,000 along with various other benefits. Some of the features of availing an Educational loan from Axis Bank are given below:

    • You can avail a maximum loan amount of Rs.75 lakh.
    • There is no margin on education loan up to loan amount of Rs.4 lakh.
    • There is a margin of 5% on loan amounts of up to Rs.4 lakh if you are pursuing your education in India.
    • There is a margin of 15% on loan amounts of up to Rs.4 lakh if you are pursuing your education outside India.
    Bank Name Processing Fee EMI (for Rs.5 lakh) Preclosure Charges
    Axis Bank 1% Rs.45,058 at 15.75% -
    • Penal interest on delayed EMI: 24% p.a. or 2% per month

    BOI Star Loan for Education

    Bank of India offers an education loan so that you can fund your or your loved one's educational needs. You also get to enjoy tax benefits under Section 80C of the Income Tax Act, 1961. Some of the features and benefits of availing an Education loan front Bank of India are given below:

    • Maximum loan amount of up to Rs.10 lakh can be availed if you are pursuing education in India. Similarly, you can pursue education of up to Rs.20 lakh if you are pursuing education outside India.
    • There is no margin on a loan amount of up to Rs.4 lakh. If you are availing a loan amount above Rs.4 lakh, then a margin of 5% will be levied if you are pursuing your education in India. If you are pursuing your education overseas with a loan amount above Rs.4 lakh, then a margin of 15% is charged.
    • Tax benefits under Section 80E of the Income Tax Act, 1961.
    Bank Name Processing Fee EMI (for Rs.5 lakh) Preclosure Charges
    Bank of Baroda 1% Rs.45,129 -

    Eligibility Creteria for loans

    Some of the basic eligibility criteria that you will have to fulfil in order to be eligible for an education loan are given below:

    • You should be a citizen of India
    • You should have secured at least 50% marks in your boards. If you are pursuing a post-graduation course, it is mandatory for you to have 50% marks in your graduation course.
    • You should not have any outstanding education loan to clear.
    • The course should be approved by UGC, Government or AICTE.

    Documents Required for Loans for Student

    You will have to provide certain documents in order to avail an education loan from the bank. Some of the documents that you will have to submit are given below:

    • Proof of identity
    • Proof of address
    • Proof of income
    • Copy of admission letter
    • Standard 10th, Standard 12th, College marksheets.
    • Bank statement for the last 6 months
    • Demand letter from the University
    • Loan agreement signed by the applicant and the co-applicant
    • Disbursement request form signed by applicant and co-applicant
    • Passport size photographs

    Things to consider before applying for an Student loan

    Some of the things that you need to take into consideration before applying for an education loan are given below:

    • Eligibility: Before you apply for an education loan, you must ensure that you or the student for whom you are availing the loan, fulfills the eligibility criteria.
    • Loan amount: You must decide on the loan amount before applying for an education loan. You must calculate not only the tuition fees, but other expenses that you will incur. It is important that you calculate the total expenses and based on it, choose the loan amount.
    • Repayment tenure: You must also take into account the repayment tenure before applying for an education loan. Once you have decided upon the loan amount, you must also check if you will be able to repay the loan amount on time.
    • Bank from whom you are availing the loan: It is important that you avail the education loan from a reputed and trusted bank. The chances are high that your loan will get approved faster if you are an existing customer. If you are looking to avail an education loan from a bank in which you hold a bank account, you will require minimum documentation and high priority will be given to your loan application. Once all the documents submitted by you are verified by the bank, they will disburse the money to your account as soon as possible.

    How to Apply?

    Applying for an education loan is very simple. You can visit the official website of the bank of your choice and apply for an education loan. The whole process of applying for an education loan is simple and hassle-free. You will have to enter the details required and upload the necessary documents. The bank will then verify the documents submitted by you and once it finds them to be correct, the loan amount will be disbursed to your account within few days.

    You can also apply for an education loan offline. You can visit the nearest branch of your bank along with all the necessary documents and apply for an education loan.

    You can also call on the bank’s customer care service number if you need any type of assistance with the loan application process.

    Frequently asked questions (FAQs)

    1. What expenses are covered as part of an education loan?

    The following expenses are covered under an education loan:

    • Tuition fee
    • Cost of uniform, books, etc. required for the completion of the course
    • Lab, library, exam fees, etc.

    2. Is it necessary to have a co-applicant?

    Yes, it is mandatory to have a co-applicant if you wish to apply for an education loan. The co-applicant can be your parents, guardian, or someone who can guarantee the repayment of the loan amount on time.

    3. Is there a repayment holiday/moratorium period available?

    Yes, there are moratorium periods available for selected courses in India.

    4. Can I repay my EMI during the moratorium period?

    Yes, you can pay your EMI during the moratorium period. However, there will be simple interest levied on your loan amount during the repayment holiday period.

    5. If I take a loan for student, what are the modes of payment of the loan amount?

    You can log in to the portal on the official website of the bank and pay the EMI using your credit card, debit card, net banking, UPI credentials, etc. You can also authorise the bank to auto-debit the amount from your bank account on the given due date. You can also repay your loan through ACH or post-dated cheques.

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