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How To Get Education Loan - Procedure, Eligibility & Documents Required


How To Get Education Loan

How To Get Education Loan: Fuel your dreams with economical help for professional or technical education in India or abroad. How To Get Education Loan and which bank is suitable under low interest. We give below a brief idea on how to get right education loan.

Quality Education is necessary to making a successful life for applicants. College Fees are rising every year, applicants have no option but to opt for education loans. Under such conditions, applicants look for Education Loans in India.

Interest Rates of Education Loan!!!

Interest Rates for education loans differ as per banks. Though, it may be anywhere between 12.00 % and 16.00 Percent which of course depends on bank’s base lending rate and other various factors.

Scroll down this page of www.privatejobshub.in to get complete details regarding How To Get Education Loan such as Procedure to apply, Eligibility Required & Documents Required for Education Loan etc.

How To Get Education Loan

What You Need For An Education Loan?
  • Co-applicant is a must; may be parents, partner, and siblings.
  • For loans between Rs 4-7.5 lakh third-party guarantor is needed
  • For loans above Rs 7.5 lakh lender will ask for security.
  • Default in payment will influence credit history of student and co applicant
  • If student goes abroad, lender will recover from co-applicant, that is, parents
  • Repayment starts six months to one year after completion of course
  • For abroad studies, loan alone may not be sufficient; look for part-time job or sponsorship
  • Insurance is necessary for foreign courses
Check Now: Best Universities Search Reviews & Ranking

Education Loan Eligibility:

The education loan will be provided to those applicants who have obtained admission to career-oriented courses e.g. medicine, engineering, management etc., either at the graduate or post-graduate level.

Applicants must have secured at least 50% marks during HSC & Graduation and should have secured admission in India or Abroad through entrance test / Merit based selection process post completion of HSC (10+2).

Get Details About: Education Loan in India

Education Loan Rate of Interest:

Name of Bank
Max. Loan Amount
Repayment Tenure
Loan Amount/ Interest Rate
Axis Bank (Base Rate- 9.95%)
Studies in India- Rs.10 lakhs Studies Abroad- Rs.20 lakhs
Maximum 7 years
Upto Rs.4 lakhs / 16.95% p.a (base rate + 7.00%) Between Rs.4 lakhs- Rs.7.5 lakhs / 17.95% p.a (base rate + 8.00%) Above Rs.7.5 lakhs / 15.95% p.a (base rate + 6.00%)
Punjab National Bank (Base Rate- 10.00%)
Studies in India- Rs.10 lakhs
Loans upto Rs.7.5 lakhs : 10 years Loans above Rs.7.5 lakhs : 15 years
Upto Rs.4 lakhs / 12.00% p.a (base rate + 2.00%) Between Rs.4 lakhs- Rs.7.5 lakhs / 13.00% p.a(base rate + 3.00%) Above Rs.7.5 lakhs / 12.50% p.a (base rate + 2.50%)
State Bank of India (Base Rate- 9.70%)
Studies in India- Rs.10 lakhs Studies Abroad- Rs.30 lakhs
5-7 years
Upto Rs.4 lakhs / 13.35% p.a (base rate + 3.65%) Between Rs.4 lakhs- Rs.7.5 lakhs / 13.60% p.a(base rate + 3.90%) Above Rs.7.5 lakhs / 11.60% p.a (base rate + 1.90%)
Avanse Education Loan (Avanse Base Lending Rate- 11.50%)
Minimum- Rs.50,000 Maximum- No Limit
Minimum Repayment Tenure- 12 months Maximum Repayment Tenure- 120 months
Calculated individually based on course being pursued and the accompanying cost.

Also Check:
 Procedure To Apply For Education Loan:

Just go through the below provided steps to know more about How To Get Education Loan. Must have a look below!!!
  • In order to apply for an educational loan, you will have to get ready number of documents required at the time of submission of application because documents verification is first step for taking loan. So, all the documents should be true.
  • After all the documents have been submitted and confirmed, you will have to appear for an interview. It is a better idea to know as much as possible about the course and the institutions that you have chosen.
  • The complete process takes around 15 days for approval and once it has been authorized, you will get a promissory note which you will have to sign.
  • In most cases, banks pay the total amount directly to the institution or to you.
  • You should ensure the repayment criteria because in most of the cases, repayment starts six months after the end of the course or as soon as you get a job.
  • Interest rates on educational loans depend on a number of aspects. In general, they differ between 10% and 15% rates of interest.
  • You can claim tax deduction on the interest of the education loan. However, no deduction can be claimed on the principal.
Know Here: How To Apply For Education Loan

Conditions for Sanctioning a Loan:

Before approving a loan, bank checks that student has really going to take admission to a course, the quality of the college and the course (whether it is recognized by the University Grants Commission or the All India Council for Technical Education), student have a skill to get an suitable job after the course and the credit history of the co-applicant or guarantor.

Repayment of Loans:

The repayment procedure must immediately start after 6 months to 1 year of completion of the program, though it can be extended to 5 to 7 years. On the other hand, in case of non-repayment, the student’s own credit history as well as his / her co-applicant’s history gets affected.

Maximum Loan Limit
Repayment Period
Upto Rs. 4 Lacs
Upto 10 years
Above Rs. 4 Lacs and upto Rs. 7.5 Lacs
Upto 10 years
Above Rs. 7.5 Lacs
Upto 12 years

Documents Required for Education Loan:
  • PAN Card/ AADHAR Card of the student and Parent/ Guardian
  • For proof of identity & residence (Driving Licence/Passport/Electricity bill/Telephone bill)
  • Admission letter
  • Completely filled loan education form
  • Statement of cost of study
  • 2 passport size photographs
  • Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
  • Proof of income Of parents (salary slips/ Form 16)
  • IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
  • Student/Co-borrower/ guarantor’s bank account statement for last 6 months
Get List Here: Education Loan Documents Required

Banks Offering Education Loans In India:

State Bank of India
Axis Bank
United Bank Of India
Avanse Financial Services
Credila (HDFC Bank Company)
Indian Overseas bank
Punjab National Bank
Dena Bank
Vijaya Bank
Bank of Rajasthan etc

Final Words:

Individual from the weaker section of society must option for government-controlled banks as they provides some benefits in form of interest-subsidy for students. Go through the above article to get complete information about How To Get Education Loan. If students have any query regarding How To Get Education Loan then drop the comment in below provided comment box.  

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