The sky-rocketing cost of education fees is often found to be the cause of anxiety for both parents and aspirants seeking higher education. The in-affordability to pay the hefty fees sometimes pressurizes the aspirants to discontinue education and rather opt for employment through which they can accumulate money to further educate themselves.
In other options, parents are often seen discontinuing their fixed deposits (FDs), mutual funds, and other financial instruments to fund the child’s education.
Therefore, banks have introduced a very convenient solution to this problem where aspirants can seek education loans at soft interest rates.
The shortages of funds can be met with education loans and it serves as a win-win situation for both parents and children, without having to discontinue the education in-between.
Read on to find out all about the Education loan in the following article:-
Education Loan Features
An education loan is quite beneficial for the aspirants as it covers basic course/college fees and other miscellaneous expenses such as accommodation (hostel fees), and miscellaneous charges in the form of cultural fees, library fees, computer charges, and many more such expenses .
Education Loan Eligibility
Please read the following conditions to avail education loan:-
The student should be an Indian citizen
He/she should be seeking admission into a college/university recognized by a competent authority in India or abroad
A student is a primary borrower who can avail loan only if the education is completed till higher secondary level schooling
A parent, spouse, or sibling can be the co-applicant to avail loan
Students pursuing higher education in India or overseas.
Education Loan – Courses Covered
Education loan is provided for the courses as mentioned under:-
A full-time course,
Part-time or vocational course
Graduation or post-graduation degree in the domain of engineering, management, medical, hotel management, architecture, etc.
Education Loan Documentation
The documentation process is an essential part of the loan disbursement process. Students can avail of loan only if all the below mentioned documents are submitted with the bank:-
- KYC documents
- Mark sheets of 10th, 12th, graduation, and entrance exams
- Admission letter
- fee structure
- Co-applicant KYC and income proof in some cases
Education Loan Repayment Conditions
It is crucial to find out the loan repayment conditions before applying for it:-
The loan is to be repaid by the student.
Generally, the repayment starts after the completion of the course/degree.
Students can also seek a relaxation period of 6 months after securing a job or a year after the completion of studies for repayment.
The repayment period generally ranges between 5 and 7 years, depending upon the terms and conditions of the bank.
How to Apply for Education Loan
Follow these easy and simple steps to get access to education loans in no matter of time:-
- Visit the bank of your choice
- Enquire about the loan process from the loan desk of the bank
- Apply for the education loan online after understanding all the terms and conditions of the loan. Submit your loan application
- Submit all the necessary documents as mentioned above and as prescribed by the bank.
- Wait for the bank to initiate the process after verification of the documents
- Provide collateral if the bank asks for it.
- The loan amount is ready to be disbursed.
*Disclaimer – The information provided above is only for information purposes to spread financial knowledge and enhance literacy among our readers. It shouldn’t be taken as financial advice by anyone.