Major banks in India play a crucial role in aiding students with their educational goals through their diverse range of education loan offerings. These loans are structured to support both domestic and international studies, with the flexibility of a repayment period that can extend up to 20 years. Starting at an appealing interest rate of 8.10% per annum, these loans offer favorable terms for prospective students.
These education loans are noteworthy for their wide-ranging applicability. They cover various stages of education, from early learning to advanced degrees. This includes support for full-time and part-time courses, making them suitable for individuals at different stages of their academic journey. Furthermore, these loans are also tailored to meet the needs of working professionals who wish to pursue further education while maintaining their careers.
What is an Education Loan?
An education loan is a financial support option provided by banks or other lenders to help students cover the expenses of their education, whether they are pursuing technical, professional, or academic courses either in their home country or abroad. This loan covers various costs associated with studying, including tuition fees and living expenses. Repayment of the loan generally starts after the student finishes their course, with an extra grace period of up to six months allowed for graduates to find employment and establish their finances before they begin repaying the loan.
Types of Education Loans
1. Undergraduate Education Loan: This type of loan is designed for students who wish to continue their education at a higher level after completing their secondary school.
2. Postgraduate Education Loan: Offered to individuals pursuing advanced studies following the completion of their undergraduate degrees, these loans support various postgraduate programs.
3. Career Development Education Loan: Intended for professionals seeking to enhance their skills through additional courses, training programs, or certifications.
4. Parent Education Loan: These loans are available for parents who want to finance their children’s education, covering tuition and other associated costs.
Compare Top Education Loan Offers 2024
| Name of Bank | Interest Rate (p.a.) | Processing Fees |
| State Bank Of India | 8.15% p.a. to 11.75% p.a. |
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| Punjab National Bank | 9.20% p.a. onwards |
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| Central Bank Of India | 8.10% p.a. to 10.60% p.a. |
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| Canara Bank | 9.25% p.a. onwards |
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| IDBI Bank | 8.50% p.a. onwards |
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| IDFC FIRST BANK | 10% p.a. to 15% p.a. |
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| Bank of Baroda | 8.15% p.a. onwards |
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| Bank of India | 11.05% p.a. to 11.85% p.a. | No processing fee for studies in India |
| ICICI Bank | 9.85% p.a. onwards | Up to 2% + GST |
| Bank of Maharashtra | 8.10% p.a. onwards | Contact the bank |
| Axis Bank | 13.70% p.a. to 15.20% p.a. | 2.00% of the loan plus GST |
| HDFC Bank | 9.50% p.a. |
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| Kotak Mahindra Bank | Up to 16% p.a. | Nil |
| Federal Bank | 12.55% onwards | Contact the bank |
| Tamilnad Mercantile Bank | 11.75% p.a. to 13.00% p.a. | 1% of the sanctioned loan amount above Rs. 7.50 lakh for studies abroad |
List Expenses Covered by an Education Loan
An education loan typically covers the following expenses:
- Tuition Fees: The cost of enrolling in and attending the educational institution.
- Hostel Fees: Charges for accommodation within the institution’s hostel or residence.
- Travel Expenses: Costs related to travel, including passage money for students studying abroad.
- Insurance Premium: Coverage for health or travel insurance required during the course.
- Books, Equipment, and Uniforms: Costs for textbooks, specialized equipment, instruments, and uniforms necessary for the course.
- Examination, Laboratory, and Library Fees: Fees associated with taking exams, using laboratory facilities, and accessing library resources.
- Computer/Laptop: Purchase or rental of a computer or laptop required for coursework.
- Caution Deposit and Refundable Deposits: Deposits required by the institution, such as caution money and building fund contributions, supported by official receipts.
- Additional Expenses: Other costs essential for completing the course, such as study tours, thesis, or project work.
Features & Advantages of Education Loans
- High Loan Limit: Access financing of up to Rs. 1 crore to cover substantial educational costs.
- Flexible Repayment Terms: Enjoy a repayment period of up to 15 years, allowing for manageable installments.
- Coverage for Both Domestic and International Studies: Loans available for education within India as well as overseas.
- Pre-Visa Disbursement: Some lenders may provide loan funds before you apply for a visa.
- Document Collection Service: Convenient doorstep service offered for gathering required documents.
- Employee Discounts: Preferential loan rates may be available for the children of bank employees at various institutions.
Reduced Rates for Women: Certain banks offer lower interest rates for female students. - Grace Period: Benefit from up to 1 year of moratorium post-course completion, during which no loan repayments are necessary.
- Tax Relief: Potential tax benefits on interest payments for up to eight years.
Tax Benefits for Education Loans
Under Section 80E of the Income Tax Act of 1961, individuals can deduct the interest paid on education loans from their taxable income. This benefit applies specifically to loans taken for higher education and is available for both domestic and international studies, including vocational and academic courses.
It’s important to note that only the interest portion of the EMI is eligible for this deduction, not the principal repayment. There is no limit on the number of times you can claim this deduction. To benefit, you must obtain a certificate from your bank or financial institution that specifies the interest and principal amounts of your EMIs.
This tax relief is available for up to eight years from the start of the repayment period or until the interest is fully repaid, whichever comes first.
Courses Covered Under an Education Loan
1. Explanation of Common Undergraduate Degrees
a). Bachelor of Arts (BA): This degree provides a broad-based education in the liberal arts and humanities. Students can choose from various majors such as English, History, Psychology, Sociology, Philosophy, or Political Science. The BA program emphasizes critical thinking, communication skills, and analytical abilities.
b). Bachelor of Science (BSc): Focused on scientific and technical disciplines, the BSc degree covers subjects like Biology, Chemistry, Physics, Mathematics, or Environmental Science. It involves rigorous coursework and often includes practical laboratory work, aiming to develop a strong foundation in scientific principles and research skills.
c). Bachelor of Engineering (BEng): This degree is tailored for students pursuing careers in engineering. Specializations include Civil, Mechanical, Electrical, or Computer Engineering. The BEng program combines theoretical knowledge with practical application, preparing graduates to design, build, and maintain infrastructure and technology.
d). Bachelor of Technology (BTech): Similar to the BEng, the BTech degree focuses on technological and engineering fields. Specializations might include Information Technology, Biotechnology, Aerospace, or Electrical Engineering. It emphasizes hands-on experience and technical skills in various technological applications.
e). Bachelor of Commerce (BCom): The BCom degree centers on business and finance. Students study subjects like Accounting, Finance, Economics, Marketing, and Business Law. The program aims to provide a solid understanding of business principles and practices, preparing graduates for careers in business and finance sectors.
f). Bachelor of Business Administration (BBA): This degree focuses on management and administrative skills. It includes specializations such as Marketing, Finance, Human Resources, and Operations. The BBA program equips students with the knowledge and skills needed to manage and lead businesses effectively.
g). Bachelor of Medicine, Bachelor of Surgery (MBBS): The MBBS degree is a professional medical qualification required to become a doctor. The program includes extensive training in medical sciences, clinical skills, and practical experience in hospitals and clinics, preparing students for a career in medicine.
h). Bachelor of Dental Surgery (BDS): This degree is essential for those seeking a career in dentistry. The BDS program covers dental sciences, clinical practice, and patient care, training students to diagnose and treat dental conditions and maintain oral health.
i). Bachelor of Law (LLB): The LLB degree provides a foundation in legal studies, covering subjects such as Constitutional Law, Criminal Law, Contract Law, and Legal Theory. It prepares students for a career in law, including roles as solicitors, barristers, or legal advisors.
J). Bachelor of Fine Arts (BFA): This degree focuses on the visual and performing arts. Students can specialize in areas like Painting, Sculpture, Graphic Design, Theater, or Dance. The BFA program encourages creativity and artistic expression through both theoretical and practical coursework.
k). Bachelor of Architecture (BArch): The BArch degree is designed for students interested in architectural design and construction. The program includes coursework in design principles, building systems, architectural history, and project management, preparing graduates for careers in architecture and urban planning.
l). Bachelor of Nursing (BN): This degree trains students to become registered nurses. It includes coursework in medical and nursing sciences, clinical practice, and patient care. The BN program prepares students to provide comprehensive healthcare and work in various medical settings.
m). Bachelor of Social Work (BSW): The BSW degree focuses on social work practice and community service. It includes training in areas such as counseling, social policy, community organization, and case management, preparing graduates to work in social services and non-profit organizations.
n). Bachelor of Hotel Management (BHM): This degree is geared towards careers in the hospitality industry. The program covers topics such as hotel operations, food and beverage management, event planning, and customer service, preparing students to manage and operate hotels, restaurants, and other hospitality establishments.
o). Bachelor of Design (BDes): The BDes degree offers specializations in areas such as Fashion Design, Interior Design, or Graphic Design. It combines creative design principles with practical skills to prepare students for careers in various design fields, focusing on aesthetics, functionality, and user experience.
2. Explanation of Common Postgraduate Degrees
a). Master of Arts (MA): This degree offers advanced study in fields such as Literature, History, Psychology, or Sociology. The MA program typically involves a combination of coursework and research, focusing on deepening knowledge and analytical skills in a specific area of the humanities or social sciences.
b). Master of Science (MSc): The MSc degree is designed for advanced study in scientific and technical fields like Biology, Chemistry, Physics, or Mathematics. It often includes both theoretical coursework and practical research, aiming to develop expertise in scientific methods and problem-solving.
c). Master of Business Administration (MBA): The MBA is a professional degree focused on business management and administration. It covers areas such as Finance, Marketing, Operations, and Human Resources. The program is designed to develop leadership and strategic thinking skills, preparing graduates for senior management roles.
d). Master of Technology (MTech): This degree is similar to the MSc but is more focused on engineering and technology fields. Specializations can include Software Engineering, Data Science, or Structural Engineering. The MTech program combines advanced technical coursework with research or project work.
e). Master of Engineering (MEng): The MEng degree provides advanced knowledge in engineering disciplines such as Civil, Mechanical, or Electrical Engineering. It is often oriented towards professional practice and includes coursework, research, or project work to deepen technical expertise.
f). Master of Finance (MFin): This degree focuses on financial management, investment analysis, and financial markets. It prepares students for careers in finance, including roles in investment banking, financial planning, and risk management.
g). Master of Public Administration (MPA): The MPA degree is designed for those pursuing careers in public service and administration. It covers topics like public policy, government management, and non-profit organization management, aiming to develop skills for effective leadership in the public sector.
h). Master of Social Work (MSW): The MSW degree is for individuals aiming to become professional social workers. It includes training in social work practice, counseling, and community service, preparing students for roles in social services, healthcare, and community organizations.
i). Master of Education (MEd): This degree is intended for educators and those interested in educational administration. It covers topics such as curriculum development, educational psychology, and instructional strategies, aimed at improving teaching skills and educational leadership.
j). Master of Law (LLM): The LLM degree offers advanced legal education and specialization in areas such as International Law, Corporate Law, or Human Rights Law. It is designed for law graduates seeking to deepen their legal knowledge and expertise.
k). Master of Design (MDes): This degree is focused on advanced study in design disciplines such as Industrial Design, Graphic Design, or Fashion Design. The MDes program emphasizes research and innovation in design, preparing students for senior roles in the design industry.
l). Master of Health Administration (MHA): The MHA degree focuses on healthcare management and administration. It includes coursework on health policy, hospital administration, and healthcare finance, preparing students for leadership roles in the healthcare sector.
m). Master of Fine Arts (MFA): This degree is for advanced study in visual and performing arts. It includes specializations such as Creative Writing, Theatre, or Studio Art, with an emphasis on developing artistic skills and creating a professional portfolio.
n). Doctor of Philosophy (PhD): The PhD is a research-focused degree available in numerous disciplines, including the sciences, humanities, and social sciences. It involves conducting original research, contributing new knowledge to the field, and completing a doctoral dissertation.
o). Doctor of Business Administration (DBA): The DBA is a professional doctorate that focuses on advanced business research and application. It is designed for experienced business professionals seeking to enhance their research skills and contribute to the field of business management.
3.Some Common Undergraduate Diploma Courses
a). Diploma in Business Administration (DBA) : Provides foundational knowledge in business principles, management, and administrative skills. Covers topics such as marketing, finance, human resources, and organizational behavior.
b). Diploma in Computer Science Explanation: Focuses on the fundamentals of computer science including programming, database management, networking, and software development. Prepares students for various IT-related careers.
c). Diploma in Graphic Design: Offers training in visual communication through design principles, typography, digital illustration, and software tools like Adobe Photoshop and Illustrator. Ideal for aspiring graphic designers.
d). Diploma in Hospitality Management: Equips students with skills necessary for managing hotels, restaurants, and other hospitality-related businesses. Topics include customer service, event planning, and food and beverage management.
e). Diploma in Nursing: Provides essential training for a career in nursing, covering medical and surgical nursing, patient care, pharmacology, and healthcare ethics. Prepares students for nursing licensure and clinical practice.
f). Diploma in Marketing: Focuses on marketing principles, strategies, and techniques. Covers areas like market research, consumer behavior, digital marketing, and sales management.
g). Diploma in Accounting: Offers a comprehensive understanding of accounting principles, financial reporting, tax regulations, and bookkeeping. Ideal for those pursuing a career in accounting or finance.
h). Diploma in Early Childhood Education: Prepares students to work with young children in educational settings. Covers child development, teaching strategies, curriculum design, and early childhood psychology.
i). Diploma in Civil Engineering: Provides foundational knowledge in civil engineering, including construction methods, structural analysis, surveying, and materials science. Suitable for those looking to work in the construction and infrastructure sectors.
j). Diploma in Fashion Design: Focuses on the principles of fashion design, including garment construction, textile science, fashion illustration, and trend forecasting. Ideal for those interested in a career in the fashion industry.
4. Explanation of Common Postgraduate Diplomas
a). Postgraduate Diploma in Management (PGDM): This diploma offers advanced management education with a focus on practical skills in areas like Marketing, Finance, Human Resources, and Operations. It is designed to enhance managerial skills and prepare students for leadership roles in various industries.
b). Postgraduate Diploma in Business Administration (PGDBA): Similar to the PGDM, this diploma provides in-depth knowledge of business administration practices, including strategic management, business analytics, and organizational behavior, aimed at preparing professionals for senior management positions.
c). Postgraduate Diploma in Finance (PGDF): This program focuses on advanced financial concepts, including investment analysis, risk management, and corporate finance. It is ideal for those seeking careers in financial analysis, investment banking, or corporate finance.
d). Postgraduate Diploma in Marketing (PGDM): This diploma specializes in marketing strategies, consumer behavior, brand management, and digital marketing. It equips students with practical skills for roles in marketing and sales across various industries.
e). Postgraduate Diploma in Human Resource Management (PGDHRM): Focused on human resource practices, this diploma covers topics such as talent management, employee relations, compensation, and organizational development, preparing students for HR roles in organizations.
f). Postgraduate Diploma in International Business (PGDIB): This program provides knowledge on global business practices, international trade, and cross-cultural management. It is designed for individuals aiming to work in international business and trade.
g). Postgraduate Diploma in Information Technology (PGDIT): This diploma focuses on advanced IT skills, including software development, network management, and cybersecurity. It prepares students for technical roles in the IT industry.
h). Postgraduate Diploma in Education (PGDE): This program is aimed at educators seeking to enhance their teaching skills and knowledge. It covers curriculum development, educational psychology, and instructional strategies.
i). Postgraduate Diploma in Project Management (PGDPM): This diploma specializes in project management techniques, including planning, execution, and risk management. It is designed for professionals involved in managing projects across various sectors.
j). Postgraduate Diploma in Healthcare Management (PGDHM): Focused on the management of healthcare facilities and services, this diploma covers topics like healthcare policy, hospital administration, and healthcare finance, preparing students for leadership roles in the healthcare sector.
k). Postgraduate Diploma in Supply Chain Management (PGDSCM): This program addresses supply chain strategies, logistics, procurement, and inventory management. It is ideal for those pursuing careers in supply chain and logistics management.
l). Postgraduate Diploma in Data Science (PGDDS): This diploma covers data analysis, statistical modeling, and machine learning. It is designed for professionals seeking to work in data science and analytics.
m). Postgraduate Diploma in Public Relations (PGDPR): This program focuses on media relations, strategic communication, and public image management. It prepares students for careers in public relations and corporate communication.
n). Postgraduate Diploma in Hospitality Management (PGDHM): This diploma offers advanced knowledge in hospitality operations, including hotel management, event planning, and customer service, preparing students for management roles in the hospitality industry.
o). Postgraduate Diploma in Environmental Management (PGDEM): This program covers topics related to environmental protection, sustainability, and environmental policy. It is designed for those interested in careers in environmental management and conservation.
5. Explanation of Common Vocational Training Courses
a). Certified Nursing Assistant (CNA): This course prepares individuals to assist nurses in providing basic care to patients in healthcare settings. It covers skills such as patient hygiene, vital signs monitoring, and assisting with daily activities.
b). Computer Programming: Vocational training in computer programming teaches coding skills in languages like Python, Java, or C++. It focuses on developing software, creating applications, and understanding algorithms and data structures.
c). Automobile Repair and Maintenance: This course provides hands-on training in repairing and maintaining vehicles. Topics include engine diagnostics, electrical systems, transmission repairs, and preventive maintenance.
d). Culinary Arts: Training in culinary arts covers cooking techniques, food safety, kitchen management, and menu planning. It prepares individuals for careers as chefs, cooks, or kitchen managers.
e). Graphic Design: This vocational course teaches design principles, digital illustration, and software tools such as Adobe Photoshop and Illustrator. It prepares students for careers in visual communication and design.
f). Plumbing: Vocational training in plumbing includes instruction on installing, repairing, and maintaining plumbing systems. It covers pipe fitting, drainage systems, and water supply management.
g). Electrical Installation: This course focuses on wiring, electrical systems installation, and safety standards. It prepares individuals to work as electricians in residential, commercial, or industrial settings.
h). Welding: Training in welding teaches techniques such as MIG, TIG, and arc welding. It covers safety practices, welding equipment, and material properties, preparing individuals for work in manufacturing and construction.
i). Hairdressing and Cosmetology: This course includes training in haircutting, coloring, styling, and skin care. It prepares students for careers as hairdressers, cosmetologists, or salon managers.
j. HVAC (Heating, Ventilation, and Air Conditioning): Vocational training in HVAC covers the installation, maintenance, and repair of heating and cooling systems. It includes topics on climate control systems and energy efficiency.
k). Construction Management: This course provides skills for managing construction projects, including project planning, budgeting, and site management. It prepares individuals for roles in construction management and supervision.
l). Digital Marketing: Training in digital marketing covers SEO, social media marketing, content creation, and online advertising. It prepares individuals to manage and execute digital marketing strategies for businesses.
m). Medical Coding and Billing: This course teaches the use of coding systems to process and bill medical claims. It includes training in medical terminology, coding practices, and healthcare regulations.
n). Interior Design: Vocational training in interior design covers space planning, color theory, furniture design, and architectural details. It prepares individuals to design and decorate interior spaces professionally.
o). Photography: This course includes training in photographic techniques, lighting, composition, and image editing. It prepares students for careers as professional photographers or photo editors.
6. Skill Development Courses Covered by Education Loans
a). Computer Programming and Software Development: Courses that teach coding languages, software engineering principles, and application development, preparing students for careers in IT and tech.
b). Digital Marketing: Training in SEO, content creation, social media strategies, and online advertising, aimed at enhancing skills for digital marketing roles.
c). Graphic Design: Courses focusing on visual communication, including design software like Adobe Photoshop and Illustrator, to prepare students for careers in design and multimedia.
d). Data Science and Analytics: Programs that cover data analysis, statistical methods, and machine learning, equipping individuals with skills for roles in data science and analytics.
e). Project Management: Training in project planning, execution, and risk management, often leading to certification such as PMP (Project Management Professional), preparing students for project management positions.
f). Web Development: Courses that teach web design and development skills, including HTML, CSS, JavaScript, and backend technologies, aimed at building and managing websites.
g). Entrepreneurship: Programs designed to develop business management skills, innovation, and startup strategies, preparing individuals to start and manage their own businesses.
h). Financial Planning and Investment: Training in personal finance management, investment strategies, and financial planning, preparing individuals for careers in finance and investment advisory.
i). Cybersecurity: Courses that cover network security, ethical hacking, and information security protocols, aimed at preparing students for roles in protecting digital systems and data.
j). Photography and Videography: Training in photographic techniques, video production, and editing, preparing individuals for careers in visual media and content creation.
k). Foreign Language Courses: Programs that teach new languages, including grammar, vocabulary, and conversational skills, enhancing communication abilities for personal or professional growth.
l). Event Management: Courses focusing on planning, organizing, and managing events such as weddings, conferences, and corporate functions, preparing students for careers in event coordination.
m). Public Speaking and Communication: Training in effective communication, presentation skills, and public speaking, aimed at improving professional and personal communication abilities.
n). Health and Wellness Coaching: Programs that cover topics related to personal health, nutrition, and wellness coaching, preparing individuals for careers in health and lifestyle coaching.
o). Human Resources Management: Courses that teach HR principles, employee relations, and organizational behavior, preparing individuals for careers in human resource management.
7. Explanation of Common Doctoral Programmes
a). Doctor of Philosophy (PhD): This is the most common doctoral degree, available across various disciplines such as Science, Humanities, Social Sciences, and Engineering. The PhD program involves conducting original research, contributing new knowledge to the field, and completing a doctoral dissertation or thesis.
b). Doctor of Education (EdD): The EdD focuses on educational practice and leadership, preparing students for advanced roles in education administration, policy, and teaching. It is designed for professionals seeking to impact educational systems and institutions.
c). Doctor of Business Administration (DBA): This program is aimed at experienced business professionals seeking to advance their research skills and contribute to business practice. It involves applied research in business management and strategy.
d). Doctor of Medicine (MD): The MD degree is a professional qualification for physicians and surgeons. It involves extensive training in medical sciences, clinical practice, and patient care, preparing individuals for medical practice and specialization.
e). Doctor of Dental Surgery (DDS) / Doctor of Dental Medicine (DMD): These degrees are required for practicing dentists. The program covers dental sciences, clinical practice, and patient management, focusing on diagnosing and treating dental conditions.
f). Doctor of Veterinary Medicine (DVM): The DVM is a professional degree for veterinarians. It includes training in animal health, surgery, and diagnosis, preparing individuals to work in veterinary medicine and animal care.
g). Doctor of Pharmacy (PharmD): This degree prepares students for careers as pharmacists. The program includes training in pharmacology, medication management, and patient care, focusing on the safe and effective use of medications.
h). Doctor of Public Health (DrPH): The DrPH focuses on public health leadership, policy, and practice. It is designed for professionals seeking to address public health challenges and improve health systems on a larger scale.
i). Doctor of Juridical Science (SJD): The SJD is a research-focused doctoral degree in law, designed for those seeking to contribute original legal research and scholarship. It is typically pursued by individuals aiming for academic or high-level legal research careers.
j). Doctor of Fine Arts (DFA): This degree is focused on advanced study and practice in the arts, including visual arts, theater, and creative writing. It is aimed at individuals seeking to achieve a high level of artistic excellence and scholarship.
k). Doctor of Music (DMus): The DMus degree is for advanced study in music, including performance, composition, and music theory. It prepares individuals for careers as professional musicians, composers, or music educators.
i). Doctor of Social Work (DSW): The DSW focuses on advanced social work practice, research, and leadership. It is designed for social work professionals seeking to impact policy and practice at an advanced level.
m). Doctor of Engineering (DEng): This degree focuses on advanced engineering practice and research, often with a focus on applied engineering solutions and innovations. It prepares individuals for leadership roles in engineering and technology fields.
n). Doctor of Architecture (DArch): The DArch is designed for advanced study in architecture, including research and practice in architectural design and theory. It prepares individuals for academic, research, or advanced professional roles in architecture.
o). Doctor of Science (DSc): The DSc is an advanced research degree focusing on scientific inquiry and contributions to a specific scientific field. It is often pursued by individuals seeking to make significant scientific advancements and contributions.
Eligibility Criteria for Education Loans
1. Course Type: Education loans are available for various educational programs including undergraduate degrees, postgraduate degrees, doctoral studies (PhDs), diploma courses with a duration of six months or more, job-oriented courses, and technical or professional courses.
2. Institution: Applicants must be enrolled in or have secured admission to recognized institutions. This includes government institutions, accredited professional institutions, and approved international colleges and universities.
3. Educational Qualification:
For undergraduate courses: applicants should have completed their 10+2 (12th standard) education.
For postgraduate courses: applicants must hold a relevant undergraduate degree.
4. Admission Status: Applicants should either be currently enrolled or have obtained admission into the specified course at a recognized institution.
List of Documents Required for Education Loan
- Admission letter from the educational institution
- Marksheets from previous education (school/college)
- Proof of age
- Identification proof (e.g., passport, driver’s license)
- Address proof (e.g., utility bill, rental agreement)
- Signature proof (e.g., cancelled cheque, attested signature)
- Salary slips (for employed applicants)
- Recent bank account statements
- Income Tax Return (ITR) with income computation
- Audited balance sheet (for self-employed applicants)
- Proof of turnover (e.g., service tax return, sales receipt)
- Completed application form with signature
- Recent passport-sized photographs
- Appropriate visa for studies abroad (for international programs)
How to Apply for an Education Loan Online
1. Visit the Bank’s Website: Go to the official website of your chosen bank.
2. Find the Education Loan Section: Navigate to the page dedicated to education loans.
3. Fill Out the Application Form: Complete the online application-cum-consent form by entering your personal and contact information.
4. Provide Additional Details: When contacted by the bank, provide any required academic and financial details.
5. Select a Service Option: Choose whether you prefer the doorstep service option for document collection or if you will visit the bank in person to complete the loan approval process.
How to Apply for an Education Loan Offline
1. Visit a Bank Branch: Go to the branch of the bank where you wish to apply for the loan.
2. Request an Application Form: Ask for a student loan application form from the bank.
3. Complete the Form: Fill out the application form with your personal, academic, and financial information.
4. Discuss Loan Terms: Confirm the loan terms with a bank representative to ensure you understand the details.
5. Submit the Form and Documents: Provide the completed application form along with the necessary supporting documents.
6. Receive the Loan Agreement: After approval, receive and review the formal student loan agreement.
What is an Education Loan EMI Calculator?
An Education Loan EMI Calculator is a digital tool designed to help borrowers estimate the Equated Monthly Installment (EMI) for their education loans. It calculates the monthly payment amount based on the loan amount, interest rate, and repayment tenure. This tool provides a clear picture of how much a borrower will need to pay each month to repay the loan.
How Does the Education Loan Calculator Help you
The Education Loan EMI Calculator helps borrowers by:
- Estimating Monthly Payments: It provides an estimate of the monthly EMI, allowing borrowers to budget and plan their finances accordingly.
- Comparing Different Loan Options: By adjusting the loan amount, interest rate, and tenure, borrowers can compare different loan options and choose the one that best fits their financial situation.
- Understanding Total Repayment: It helps borrowers understand the total amount they will repay over the loan tenure, including both principal and interest.
- Planning Financial Goals: By knowing the EMI amount, borrowers can better manage their expenses and plan for other financial goals.
How to Use the Educational Loan EMI Calculator
- Enter the Loan Amount: Input the total amount of the education loan you wish to take.
- Specify the Interest Rate: Enter the annual interest rate charged by the lender.
- Select the Repayment Tenure: Choose the number of months or years over which you plan to repay the loan.
- Calculate: Click on the ‘Calculate’ button to generate your EMI amount and other relevant details.
- Review Results: The calculator will display the EMI amount, total interest payable, and the total amount payable over the loan tenure.
How to Calculate Educational Loan EMI
- Gather Loan Details: Collect information about the loan amount, interest rate, and repayment period.
- Use the EMI Formula EMI= [P*R*(1+R)^n]/[(1+R)^n-1]Where,
- P = Principal amount
- R = Rate of interest
- n = Tenure (in months)
- Apply the Formula: Substitute your loan details into the formula to calculate the EMI.
- Verify with a Calculator: For accuracy, you can use an online EMI calculator to verify your manual calculation
Education Loan Repayment Process
The repayment of an education loan typically begins 12 months after completing your course or 6 months after securing employment, whichever occurs first. The moratorium period, or grace period before repayment starts, varies by lender, so it’s important to check the specifics with your lender.
Repayment Methods:
1. Internet Banking: Pay online through the lender’s website or mobile app.
2. Cheque: Submit a cheque at any branch of the bank.
3. Direct Debit: Set up automatic payments for your EMI to be deducted directly from your bank account on the due date.
4. Demand Draft: Pay using a demand draft.
Important Details:
Moratorium Period: Repayment starts after course completion or employment, as specified by the lender.
Part-Payment: You can make partial payments towards the loan if desired, paying off a lump sum.
Pre-Payment: If you can manage funds, pre-paying the loan is possible, though it might involve a processing fee.
What do the Lenders Consider to Approve the Loan?
- The course and institute you choose
- The amount you need
- Repayment capacity of your family
- Your academic performance
- Annual income
- Family assets
FAQs on Education Loan
Conclusion
Education loans provide essential financial support for students pursuing higher education, both domestically and abroad. They cover a range of expenses, including tuition, travel, and living costs, with flexible repayment options. Typically, repayment starts after a grace period of 12 months post-completion of the course or 6 months after employment. Various repayment methods, such as online payments and direct debits, are available to suit different preferences. Lenders assess factors such as the chosen course, loan amount, academic performance, and family financial stability to determine loan approval. With the right approach, education loans can be a powerful tool to achieve academic and professional goals, making quality education accessible without immediate financial strain.