Everything You Need to Know About Education Loan in India

Introduction to education loan

Students frequently discontinue their plans to pursue higher education due to financial limitations. Education Loan helps those aspiring students accomplish their academic goals. We can assure you that students who have more information about education loan norms and are ambitious enough to pursue a good education will always be able to repay their education loan easily. Because quality education is a must for a complete and successful life. 

Loan offered to courses in India

Education Loan is offered to students who want to pursue their higher studies in India. These are the types of courses covered under the education loan in India.

1. Education Loan for Undergraduates

It is designed to assist students in completing their undergraduate degrees by providing financial assistance. An undergraduate degree is often a 3 to 4 year long course with a variety of specialisations. Individuals with an undergraduate degree have a better chance of landing a good job and starting to make money.

2. Education Loan for Postgraduates

Many undergraduates want to continue their studies with a postgraduate study, which in India is normally a 2-year long course. These are specialized courses.

3. Education Loan for Career Development

Many people want to take professional courses and training to improve their job prospects. Here individuals are seeking specialization and want to get into the corporate sector.  Working professionals also seek to develop their skills and advance in their careers.

Eligibility:

• Nationality: To apply for an education loan, you must be an Indian citizen who has been accepted or seeking an admission into a college or university or institute that has been recognised by a competent authority in India.
• Courses: You must finish your high school education. Some banks will provide a loan even before a student has been accepted to a university. The age limit for seeking a loan depends on banks, NBFC and financial institutions.
• Institutions: You should secure admission in India to pursue higher/professional/ technical education, through the appropriate selection process and clear the qualifying examination from a recognised institution in India.

Expenses Covered 

Once the loan application is approved, the education loan in India will cover a wide range of categories like

1. Tuition fees
2. Hostel: Food and Accommodation expenses
3. Classroom: Books and uniforms expenses
4. Others: Laptops and training materials
5. Expenses covered for study tours etc

Tenure and EMI

The education loan tenure and EMI depends on a lot of criteria like duration of course, loan amount, CIBIL rating, repayment history, etc. It varies from bank to bank, NBFC or financial institution you are seeking a loan.

Interest Rates

The bank charges a basic interest rate on the loan during the repayment period. Interest is decided by the banks, NBFC or financial institution. It once again depends on the course duration, loan amount opted for, CIBIL rating and repayment history.

Applying for education loan

You can enquire about the loan process at any bank, NBFC, or financial institution of your choice, or you can apply online. After you submit your education loan application, the bank will initiate the process by verifying your documentation, evaluating the course of study for which you want to borrow money. After that, the bank will inform you.

Documents required for Education Loan

1. KYC documents
2. Mark sheets of 10th, 12th, graduation and entrance exams
3. Admission letter
4. Fee structure
5. Co-applicant KYC and income proof in some cases

Additional documents may be requested in some cases.

Conclusion

Varthana education loan helps students pay all their expenses for higher studies in India. It is strongly suggested that students should apply for an education loan at a banking institution regulated by RBI. We provide the best of what NBFCs and Registered Banks have to offer. Our services ensure that the students get faster loans, at the lowest interest rates and can select a custom loan product as per their requirement. Apply now to get access to Varthana’s exclusive education loan benefits.