Nothing beats good education. And when you get it from the best schools in the world, your chances at life’s successes are limitless. Now, the only thing that may be separating you from this reality is money. But an easy approval for an education loan can quickly put your worries to rest.
The best thing about education loans is that they can cover a major part of or all the expenses that could be incurred in pursuit of quality education, including your travel expenses to the destination, hostel accomodation expenses, and several other operating costs that will be necessary for the completion of your course. With the right set of documents and a sympathizing guarantor, your dream of making it to reputable college or university is never too far away.
And with Paisaportal.com at your side, we help you reach these dreams faster. We guarantee to find you a lender that can meet your needs according to your capability to repay the set interest rates with the most convenient repayment terms. In filling out our online form, you already take that big step towards success.
Determining the Loan Amount
Educational loans in India for local universities and colleges are about 10 lacs to 15 lacs, while pursued courses in foreign universities are up to Rs 20 lacs. The loan amounts are based on the student’s course and the family’s annual income. Generally, banks extend education loans to female students with lower interest rates.
Eligibility of the Applicant
Applicant should be of Indian nationality
- Between 16 and 35 years of age
- Completion of the course period should also be provided
Repayment of the Loan
Student borrowers are given more flexible repayment schemes because of the nature of their loan. They can start within a year of completing the course or six months after taking on a job after college, whichever comes first. This sets the whole repayment period at 5 to 7 years after graduation.
Students who are unable to complete the course at the schedule time are given an extendable period of up to 2 years.
Interests and Fees
Depending on the course the student takes, interest rates will vary between 8% and 15%. A processing fee of 0.5% to 2.5% of the loan amount is charged by the bank or financial institution that takes care of the application. This already includes bank fees and additional charges from various operations.
Guarantor or Security
Depending on the amount that would be taken for the educational loan, a security or a guarantor is needed. The co-applicant can be anyone related to you such as a friend, a family member, or a relative. Education loans that are below Rs 4lakh do not need co-laterals. But for anything above this amount, co-laterals such as properties, stocks, and deposits, may be required by the bank.
Required Documents
Students will also need to do the following
- Provide proofs of identification, age, and residential address
- They also need to submit a letter of admission from the school, including the breakdown of fees
- A co-applicant would also have to present the same set of documents with additional financial documents of income tax returns.
- In case the student decides to study overseas, he or she needs to submit Visa documents, travel papers, GMAT or GRE scores, and other proofs of their education.
Additional Information and Tips
Normally, you would go for banks that offer lower interest rates. But there is more to chasing dreams than cheap fees. You need to choose a bank that can issue a loan sanction letter before your visa approval. Looking for lenders online is thereby a quick way to find the best lender for your education loan in just a matter of 1-2 days.
At Pasiaportal.com, we understand that education is the foundation of a brighter future. That is why we strive to make things easier for you. We will connect you with lenders that will answer your education loan needs in the most efficient manner and in the minimum time possible. Just fill in our online form and watch your dream turn into a reality.