South Point

Institute of Technology & Management, Sonipat

Approved by AICTE, New Delhi | Affiliated to HSBTE, Panchkula

southpoint9@gmail.com

+91 9812 020 033 /
+91 9812 421 919

Educational Loan

Educational Loan

When it comes to all the building blocks that form a complete and successful life, nothing is as important as quality education. However, education in India, at least the commonly perceived ‘quality education’ as imparted by acclaimed and influential educational institutions, is decidedly costly and not easily available to everyone- especially to those who deserve it on the basis of merit alone. Thus, education loans are vitally important. Almost all banks in India offer education loans, and the demand for it has remained stable with the Indian student community.


Details of Education Loan
Education Loan Interest Rate.(Monthly reducing balance) 12.00% to 17% floating.
Processing Fees NA
Education Loan Tenure 1 year to 10 years
Educationa Loan Amount Up to 100% of educational expenses
Pre-closure Charges NA
Guarantor Requirement Yes, guarantor required

Education Loans from Top Indian Banks


Lender. Loan Amount/ Interest Rate.
State Bank of India (Base Rate- 9.70%) Upto Rs.4 lakhs / 13.35% p.a (base rate + 3.65%)
Between Rs.4 lakhs- Rs.7.5 lakhs / 13.60% p.a(base rate + 3.90%)
Above Rs.7.5 lakhs / 11.60% p.a (base rate + 1.90%)
Axis Bank (Base Rate- 9.95%) Upto Rs.4 lakhs / 16.95% p.a (base rate + 7.00%)
Between Rs.4 lakhs- Rs.7.5 lakhs / 17.95% p.a (base rate + 8.00%)
Above Rs.7.5 lakhs / 15.95% p.a (base rate + 6.00%)
Punjab National Bank (Base Rate- 10.00%) Upto Rs.4 lakhs / 12.00% p.a (base rate + 2.00%)
Between Rs.4 lakhs- Rs.7.5 lakhs / 13.00% p.a(base rate + 3.00%)
Above Rs.7.5 lakhs / 12.50% p.a (base rate + 2.50%)
Avanse Education Loan (Avanse Base Lending Rate- 11.50%) Calculated individually based on course being pursued and the accompanying cost.


Features & Benefits of Education Loans

When it comes to a complete education loan, the features and benefits offered are the designated deal makers. Commonly, the following conveniences are offered as part of the education loan-

  • Universally available. Anyone with a will to study can apply.
  • Education loans are provided to pursue all types of academic courses, in India and abroad. The courses include graduation, post-graduation, vocational courses and other certificate courses.
  • Loan amounts can vary from a minimum of Rs.10 lakhs to a maximum of Rs.15 lakhs. For education abroad, banks will provide loans to the quantum of Rs.20 lakhs.
  • The applicant’s annual family income and the course pursued are primary determinants for the applicable loan amount.
  • Usually, female students are offered discounts and/or lower interest rates when it comes to education loans.
  • Government sponsored subsidy schemes, such as Central Scheme to provide Interest subsidy (CSIS)’ help students from the economically backward sections of society avail the benefits of a robust loan for education.
  • The applicant need not repay the borrowed amount immediately. Post the completion of the course, the repayment tenure can stretch upto 5-7 years.
  • Generally, loans below Rs.4 lakhs do not require a security or guarantor.


Top Banks Offering Education Loans in India

The following banks are listed at the top of their class when it comes to education loans in India-

  • SBI Education Loan-India’s largest public sector bank is also a firm favourite when it comes to education loans. Offering upto Rs.10 lakhs for studies in India and Rs.30 lakhs for studies abroad, the SBI Education Loan is a full-fledged offering with customer friendly features and benefits. Some of the key highlights of the SBI Education Loan are as follows- friendly interest rates, coverage of a wide spectrum of educational courses in India and abroad, immensely student friendly terms and the backing of SBI’s legendary name and reliability.
  • Axis Bank Education Loan- India’s third largest private sector bank is a strong contender when it comes to student friendly loans for education. The Axis Bank Education Loan is a full featured offering that is characterised by friendly interest rates, quick turnaround times, loan amounts of Rs.10 lakhs for studies in India and Rs.20 lakhs for studies abroad, a comprehensive listing of funded educational courses (in India and abroad) and Axis Bank’s famous brand of customer support and banking innovation.
  • HDFC Education Loan- India’s fifth largest bank is a veteran when it comes to offering comprehensive and student friendly education loans and also commanding absolute devotion towards its loan schemes from students aspiring for higher education in India and abroad. Competitive interest rates, a whole range of student centric options and features, funding for an elaborate list of educational courses in India and overseas, alongside HDFC’s constant popularity and new-age banking methodologies, are some of the fundamental reasons why HDFC must be on your scanner when talking of good education loans.
  • Avanse Education Loan-The first thing that hits you about education loan offerings from Avanse is the sheer number of options on offer. Loans for studies in India, abroad, executive education, pre-admission loans, pre-visa disbursement loans and fast track loans are popular offerings, while a number of student friendly terms and conditions make the aforementioned loans very popular. Avanse Education Loan is focussed on top notch customer service that is backed by an interactive and robust loan processing and disbursal system that will ably match the best on offer in India.


Education Loan Eligibility

Listed herein are the basic requirements that qualify your application for an education loan:

  • The applicant must be a resident Indian.
  • He/she must have secured admission into a recognized course of study, in India or abroad, through an entrance test or other such qualification procedure.
  • If the applicant is a Non-Resident Indian (NRI), he/she must hold a valid Indian Passport.
  • Courses applicable in India- Graduation, Post-Graduation, Diploma programs, Technical courses, Management courses and other professional courses (all from recognized universities).
  • Courses applicable Abroad- Graduation, Post-Graduation, Certificate Degree courses from CIMA- London, CPA-USA and other such well-known educational entities.
  • The applicant must provide a collateral/security that is enforceable in India.


Note-Since the rules, regulations, eligibility conditions, repayments and interests rates etc are revised by the banks from time to time in keeping pace with the changing capital market conditions, students and parents are advised to thoroughly check the terms and conditions of educational loan scheme on offer at the time of application.


Documentation Required When Applying for an Education Loan

When applying for the loan, the lender in question will ask for a number of documents that prove your eligibility in terms of your student status, family income, ID and address proof, course applied for, and other such factors. Listed herein is the basic list of required documents:

  • Completed loan application form.
  • Documents for proof of age (self-attested).
  • ID and Address proof.
  • Passport sized photographs of the applicant, guarantor, etc.
  • Copies of highest educational qualification (degree/post-graduation, etc.)
  • Proof of income (IT returns of parents/guarantor).
  • Six months bank statement for account held by applicant/parent/guarantor.
  • Details of collateral security marked by a Government approved valuer (if applicable).