Loans for Students

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We all dream of studying at the best institutions and making the most out of the education system for a thriving career and future. But not all education is affordable and as most students do not earn an income, the burden on parents to provide a decent education for their children is ever increasing. However, banks and financial institutions offer education loans for students to complete their studies comfortably without applying much pressure on parents at the same time.

Furthermore, you will enjoy tax benefits on educational loans under section 80(E) of the Income Tax Act, 1961.

Find below some popular loans offered to students in India:

HDFC Education Loan for Indian Education

HDFC provides their loan services right at your doorstep. Find below the features of education loan offered by the bank:

• Age - You must be between 16 years and 35 years of age.
• Loan amount – Unsecured loans up to Rs.7.5 lakhs and secured loans up to Rs.10 lakhs.
• Choice of collateral – HDFC offers an array of collateral options including HDFC Bank Fixed Deposit, Residential Property, NSC or KVP policy, LIC policy etc.
• Loan Tenure – You can choose a loan tenure up to 15 years post the repayment holiday period.
• Loan disbursal – The loan will be disbursed directly to the educational institution according to your fee structure.
• Processing fee – Up to 1% of the loan amount will be charged as processing fee for this loan.
• For full-time programs, a co-applicant is required.

Axis Bank Loan for Education

You can apply for this loan for technical or professional education within India or overseas.

• Loan amount – The minimum loan amount is Rs.50,000. The maximum loan amount for education in India is Rs.20 lakhs and Rs.30 lakhs for education overseas.
• Loan approval – If all conditions are satisfied, your loan will be approved within 15 business days.
• The loan amount can be used to cover the full tuition fee, books, hostel charges etc.
• Margin – No margin for loan amount up to Rs.4 lakhs. 5% margin will be applicable for loan amount above Rs.4 lakhs for education within India and 15% margin will be applicable for loan amount above Rs.4 lakhs for education abroad.
• Interest rate – MCLR or Marginal Cost Based Lending Rate of 8.85% will be applicable on the loan.

BOI Star Loan for Education

You can apply for this loan for the purpose of pursuing your higher education within the country or overseas.

• Loan amount – The maximum loan amount for education in India is Rs.10 lakhs. The maximum loan amount for education overseas is Rs.20 lakhs.

• Margin – No margin for loan amount up to Rs.4 lakhs. 5% margin will be applicable for loan amount above Rs.4 lakhs for education within India and 15% margin will be applicable for loan amount above Rs.4 lakhs for education abroad. Scholarships may be included in the loan margin.

• Loan amount can be used for the payment of the full tuition fee, examination/laboratory/library fee, purchase of uniforms, books, equipment etc.
• The applicant must have a good academic record to be eligible to apply for this loan.

Bank of Baroda Loan for Educations

Bank of Baroda offers a host of education loan options to customers starting from primary education to post-graduate education. Some of the education loans offered include the following:

Baroda Vidya

This loan is available for parents to finance their children’s school education starting from Nursery and up to Senior Secondary School.

• Loan amount – Up to Rs.4 lakhs.
• No collateral required for this loan.
• Margin - No margin, processing fees or documentation fees charged.
• Repayment – The loan must be repaid in 12 EMIs.
• The parents must be residents of the place for at least 3 years. This does not include transferable jobs.

Baroda Gyan

This loan is available for students wishing to pursue their graduation, post-graduation, professional courses or any other course within India.

• Loan amount – Up to Rs.10 lakhs.
• Margin – No margin for loans up to Rs.4 lakhs. For loan amount of above Rs.4 lakhs, 5% margin will be applicable.
• Repayment Moratorium Period – Repayment will start 1 year after the course period is completed or 6 months after getting a job, depending on whichever of the 2 occurs first.
• Repayment Period – Up to 180 installment payments.
• No processing fees charged.
• This loan comes with a complimentary debit card.

Baroda Scholar

This loan is available for students wishing to pursue their professional or technical studies overseas.

• Loan amount – Up to Rs.20 lakhs.
• Margin – 15%.
• Repayment Moratorium Period – Repayment will start 1 year after the course period is completed or 6 months after getting a job, depending on whichever of the 2 occurs first.
• Repayment Period – Up to 180 installment payments.
• No security required for loan amount up to Rs.4 lakhs.

Never compromise on education. Secure your future by studying up to your full potential and strengthen your career prospects with an education loan.