How bank give education loan
A collateral is asked for loan exceeding Rs 7.5 lakh. Once the loan application is accepted, the banks disburse the amount directly to the college/university as per the given fees structure. The banks uses the Marginal Cost of Funds based Lending Rate (MCLR), plus an additional spread to set an interest rate.
How can I get education loan from Bank?
Documents required for Education Loan
- KYC documents.
- Bank Statement / Pass Book of last 6 months.
- Optional – Guarantor Form.
- Copy of admission letter of the Institute along with fees schedule.
- Mark sheets / passing certificates of S.S.C., H.S.C, Degree courses.
Which bank provide education loan easily?
Compare Top Education Loan Offers 2022
| Name of Bank | Interest Rate (p.a.) | Processing Fees |
|---|---|---|
| SBI | 6.70% to 8.65% | Up to Rs.10,000 |
| Axis | 13.70% to 15.20% | Nil to Rs.15,000 + GST |
| Bank of Baroda | 8.85% to 10.85% | 1% of loan amount up to Rs.10,000 |
| HDFC | 9.55% to 13.25% | Up to 1% of loan amount + tax |
What is the minimum loan amount for education loan?
Education Loan Interest Rate in 2022
| Interest Rate | 8.40% onwards |
|---|---|
| Minimum Tenure (excluding grace period) | 5 years |
| Moratorium Period (after course completion) | 1 years |
| Minimum Loan amount | ₹ 50,000 |
| Maximum Loan without collateral | ₹ 4,00,000 |
Is it easy to get education loan?
Easily available: Education loans are widely and easily available. In fact, they are a priority product in all banks as per the RBI’s guidelines. Varied loan amounts: Banks can offer loans anywhere between Rs. 2 lakh and Rs.
What are the rules for education loan?
Eligibility Criteria for Student Loans in India
The applicant should be of age 18-35 years. The applicant should have a good academic record. The applicant should have secured admission to a recognized University/institution. The courses eligible for education loan are generally provided by the banks.
Is cibil score required for education loan?
One of the most prominent factors in an education loan is the CIBIL score of the applicant and the co-applicant. The score can range from 1 – 999. However, the ideal CIBIL score to get an education is 750 and above. Applicants with a CIBIL score below 600 would face difficulty in getting loan approval.
How do I repay my education loan?
Plan To Repay
In case of SBI Scholar loans, repayment will start after the completion of course period and moratorium period (6 months after course completion). The accrued interest during the moratorium period and course period is added to the principle and repayment is fixed in Equated Monthly Installments (EMI).
Can I get education loan without interest?
However, can education loans in India be actually interest-free? The answer is no. Or at least, technically, you cannot avail of an interest-free education loan unless you have availed some economic benefits or academic subsidies from either the government or your institution.
Is student loan a good idea in India?
You will save on a lot of interest. Tax Benefits: You can avail of tax benefits under Section 80E of the Income Tax Act on the interest you pay on your educational loan. To be eligible for this deduction, your loan should be taken from an Indian scheduled bank or a gazetted financial institution.
Can we take 2 education loans?
Well, the answer to the above question is – Yes, a student can be eligible for a second education loan. For this, they can either apply for a second education loan from the bank they already have taken their first loan from or they can apply to a different bank.
Is any property required for education loan?
Generally, education loans are unsecured in nature.It means you do not have to pledge any asset as collateral. However, education loans with a loan amount of Rs. 7.5 lakh or higher, may require collateral.
What is the interest rate of student loan?
Top Banks Education Loan Interest Rates
| Banks/NBFC | Loan Amount | Rate of Interest |
|---|---|---|
| Axis Bank | Loans greater than Rs. 4 Lakhs and upto Rs. 7.5 Lakhs | 14.70% |
| Loans greater than Rs. 7.5 Lakhs | 13.70% | |
| Bank of Baroda | For all loan types and amounts | 8.50% onwards |
| Canara Bank | For Vidhya Turant Loan Scheme | 6.60% |
What is the monthly payment on a 10000 student loan?
Fixed APR: A $10,000 loan with a 20-year term (240 monthly payments of $85) and a 8.24% APR would result in a total estimated payment amount of $20,434. Your actual repayment terms may vary.
How much education loan can I get India?
In general, you can get up to 4 lakhs of educational loan for higher studies without any collateral. Under education loan scheme, you can get a maximum of 15 lakhs for studies in India and more 25 lakhs for abroad studies.