Education is the essence of life. To ensure that no deserving student is denied education for want of funds government is promoting education loans in a big way. Education loans from banks have become a preferred way of financing higher education in India and to study abroad. Banks have also become more market-oriented, making it convenient to avail of an education loan.
Any student who has secured admission in any Reputed institute recognized by Government/Government authorities is eligible for educational loan.
Education loans cover cost of the Tution fee, hostel fee, Library fee, admission fee, cost of books and stationery. Apart from this, any other expense required to complete the course can also be considered.
The maximum loan amount for an education loan varies from bank to bank, depending on the course and the educational institution. The Maximum amount of education loan available is up to Rs. 7.50 lakhs in case of studies in India and Rs 15 lakhs for studying abroad. There is no margin for loans up to Rs 4 lakh. For loans above Rs 4 lakh, the margin is 5% for study in India and 15% for study abroad. For loans above Rs 4 lakh, banks will ask for 100% collateral security
The interest rates are generally in between 11% to 14% per annum
The fee for all years is normally disbursed to the college/institute directly by the bank.
Generally You have to start repaying the principal portion of the education loan six months after finishing the course, or when you get a job, whichever is earlier.
• Mark sheet of last qualifying examination
• Proof of admission to the course
• Schedule of expenses for the specified course
• Copies of letter confirming scholarship, etc.
• Statement of Bank account for the last six months
• Income tax assessment order for previous 2 years
• A brief statement of assets and liabilities of the co-borrower, which is usually the parent or guardian, and proof of income, if any.
• Copies of foreign exchange permit, if applicable.
Apart from the above documents you have to submit any other documents specified by particular bank