Education Loan

The cost of education in India and abroad is rising day by day. It has become difficult for students to afford quality education because of higher college fees. The only way to cope with the rising cost is an Education Loan that has added benefits other than just paying the college fees.

An Education Loan is a loan that students apply for, in order to fund their education in India or abroad. Different banks and financial institutions offer Education Loans to aspirants at competitive rates, to help them make quality education affordable.

Benefits Of an Education Loan
•The loan amount can vary from minimum Rs 1 lakh to Rs 1 crore, depending upon your area of study for both Undergraduate and Postgraduate courses

•In certain cases, even 100% financing is available.

•Education Loans also include all other expenses, such as library fees, hostel fees, cost of books, laboratory fees etc., thus assuring that the student does not have to pay any expenses from their pocket.

•The loan amount covers other expenses such as the cost of laptop or travel expenses, hostel or boarding expenses and Stationery and Books.

•The Bank offers a flexible repayment option.

•Parents and siblings can be co-applicant(s) in an Education Loan

Documents Required for Education Loan

To be eligible for an Education Loan, students need to submit the following documents:

•Marksheet and passing certificate of 10th and 12th exams

•Admission Letter from the respective college/university

•Fee structure

•KYC document of the applicant and co-applicant and Guarantor

•Income proof in some cases for applicant but in all cases for Co-applicant and Guarantor.

•Title deeds of the property to be mortgaged (if required)

•In case of an Education Loan below Rs 4 lakh, no collateral is required.

•For a loan above Rs 4 lakh to Rs 7.5 lakh, a third-party guarantor is required, while for loans above Rs 7.5 lakh, collateral becomes mandatory. When it comes to a loan for studying abroad, insurance is mandatory.

Features of an Education Loan

•The loan amount is directly paid to the institution/university at the start of the semester by the Bank.

•It is not necessary to pay the amount immediately; the repayment tenure starts from months or year, after the completion of the course and in some cases, it can be extended from 5 to 7 years. It depends from Banks to Banks.

•The interest rate varies from Banks to Banks.

“My Rupee Mantra” Role
While an Educational Loan is a good way to finance education in case of a shortage of funds, our Experts always weigh client’s financial capabilities before suggesting for an education loan read with all terms and conditions. Experts suggest a suitable Mantra (Product) suitable for the client with attractive rate of interest and terms with flexible tenures as per client’s repaying capacity.