Education Loan
Education loan is the financial aid offered by the bank or the loan providers to the candidates who are willing to pursue technical, educational, or other courses abroad. The loan provider allows students to repay the loan after completion of the course and a period of six months is also provided as a grace period until the candidate gets a job.
Types of Education Loan
- Undergraduate education loan for higher education after secondary education
- Post graduate education loan for pursuing courses after completion of undergraduate courses
- Career growth education loans for courses, trainings or certification
- Parents availing education loan for their children
Features & Benefits of Study Loan
- Loan financing up to Rs.1 crore is available.
- Loan repayment tenure is up to 15 years.
- Get Education loans for studies in India and abroad.
- Some lenders offer loan disbursals before applying for a Visa.
- Door-step service to collect required documents.
- Children of the bank’s employees enjoy preferential rates at several banks.
- Certain banks offer concessional interest rates to female students.
- Enjoy a moratorium period of up to 1 year after course completion. During this period, you do not have to make payments on the loan.
- Enjoy tax benefits for to eight years on the interest paid.
Eligibility Criteria for Education Loans
- Loans are provided for sanctioned undergraduate programs, postgraduate programs, PhDs, diploma courses with a duration of six months or more, job-oriented courses, and technical/professional courses.
- Applicants must be enrolled or secure admissions in recognised institutions, government institutions, professional institutions, and international colleges and universities.
- For undergraduate courses, applicants should have completed 10+2 (12th standard), and for postgraduate courses, a degree is required.
Education Loan- Documents Required
Along with a duly filled education loan application form of the lender bank/ institution and photographs, the applicant is required to submit the following documentation:
- Letter of admission confirmation received from the college/institution
- Fee breakdown, stating the tuition fees and other charges provided by the college/institution
- Copies of mark sheets starting from class 10th to the last qualifying exam cleared
- A declaration/affidavit to confirm no other loan has been availed for the same or another course
- Identity and signature proof [Passport, Pan Card, Driving License, Voter ID Card, Adhaar Card or the Employee identity Card in case of government employees]
- Address Proof [Bank statement, Rent Agreement, Voter ID Card, Ration Card, Passport, Driving License; telephone, electricity, or water bill;Credit Card Bill or Property Tax]
- Age Proof [Voter ID Card, Secondary School Certificate (class 10), Birth Certificate, Passport or Aadhaar Card]
- Income proof of co-borrower or the applicant if he/she is employed
- In case of a salaried individual [Latest salary slip with Form 16 or Salary account bank statement for the six months prior to applying for an education loan]
- Self-employed businessmen/professionals [Latest ITR, computation of income, Profit & Loss and Balance Sheet certified by a CA, Business continuity proof]
- Qualification proof of highest professional degree acquired.