Education Loan Eligibility: The exams season is over, now a lot of students will approach universities for admission in different professional courses. The education costs have been increasing per day and students find it really uncomfortable to bear the education loan. Hence, now we have come up with a new article regarding the Education Loan Eligibility
Education Loan Eligibility
The students who want to carry on with any professional course can avail of the education loans from Indian Private/Public Banks. The tuition fees of any professional course and the living expense while studying any professional is on a higher side and not every student can afford it. The loan facility by different banks has made it possible for the students to pursue a professional course in India or abroad. The different interest rates provided by different banks have been now giving an option to the student to choose the correct bank for the education loan. Check below the general Education Loan Eligibility for all the students-
- The student must be a valid citizen of India.
- The aspirant must have secured a good rank in any competitive exam for securing admission.
- The candidate must have an official admission letter from a recognized foreign University.
- The course selected by the aspirant must be technical or professional in nature such as B.Tecg, MBA, MBBS.
What is an Education Loan?
Education Loan is a type of loan offered by banks both private and public to sponsor student’s education. There are a lot of students who wish to pursue professional courses such as Engineering, MBA had to pay a lot as course fee. Hence, the government decided that banks would give loans to students at a concessional rate of interest. The education loan has also lead to a rise in the number of students availing it.
The major benefit of getting an education loan is hassle-free fee payment while studying. The students who avail loans have to pay it back to the bank with the interest amount once they have their career started. There are a lot of rules and regulations that are attached to the Education Loan Eligibility hence its is always advisable to read it correctly.
What are the benefits of avialing an Educational loan?
There are a lots of benefits that come packed with the Educational loan for a student some of which are mentioned below:
- The real benefit is that with education loan comes a temporary sponsorship by the Indian bank regarding the course fee.
- most of the banks offer to cover 100% of the expenses of the course availed.
- Apart from the tuition fee, all other miscellaneous expenses are also included in it.
- All the other expenses such as laptop charges or book charges are also funded by the banks.
- Also, if the course availed is for a abroad college then the travel expenses are also bored by the bank.
How to Apply for Education Loan?
The students who need to apply for the education loan have to follow the basic steps to apply for the Education loan:
- The students must have to choose the bank from where you wish to avail the loan,
- The candidates must check other chargers like processing, EMI return charges before applying,
- The student will need to visit the bank website/branch to apply for the loan.
- The aspirants are advised to read the terms and conditions carefully before applying for the loan.
- The candidates must have all the mentioned documents self-attested and ready for verification.
Documents required for applying
There is a specific set of documents which has to be submitted by the candidate who wishes to avail of the education loan facility. The set of documents that are attached to the Education Loan Eligibility brochure. Check out the complete list before applying:
- A valid Admission Offer Letter offered by the college/institute
- A statement containing the total cost of the course
- Duly filled and attested Application Form of loan
- KYC (Know your Customer) Documents
- Self-attested Marksheets of Class 10/ Class 12/ Graduation
- Valid comply of Parent’s and Student’s PAN Card
- Aadhaar Card of Parent and Student
- Residence Certificate or Electricity Bill/ Gas Document
- Bank Account Statement (at least six months) of student/ parent
- Statement of Liabilities/ Assets of Parent
- Self-attested Income Proof of Parent
- Two Passport Size Photographs of the student
Education Loan Eligibility and Interest Rates
| Banks | Interest Rate | Education Loan |
| HDFC Bank | 11.57% | |
| Bank of Baroda | 8.5% | |
| Punjab National Bank | 8.45% onwards | PNB Pratibha ( for admission to XLRI Jamshedpur, IIMs and IITs) |
| 8.45% onwards | PNB Pratibha (for admission to other colleges) | |
| 8.55% onwards | PNB Uddan/ Saraswati | |
| Andhra Bank | < Rs. 7.5 Lakh | Marginal Cost of Funds Based Lending Rate (MCLR) + 2.00% |
| Canara Bank | 9.90% | Rs. 7.50 Lakh |
| 10.20% | Rs. 4 Lakh to Rs. 7.50 Lakh | |
| 10.40% | Model Loan Scheme for Vocational Education and Training | |
| Bank of Baroda | 8.50% onwards | For all types of loans and amount |
| State Bank of India | 10.50% | |
| Axis Bank | 15.20% | < Rs. 4 Lakh |
| 13.70% | < Rs. 7.5 Lakh | |
| 14.70% | Rs. 4 Lakh to Rs. 7.5 Lakh |
Education Loan Eligibility for Different Banks
Basically, there are two types of banks, Public bank & Private bank that provide education loans. But both banks have different criteria to provide education load. Here we are sharing the details regarding Education Loan Eligibility for Different Banks.
Private Bank Education Loan Eligibility
| Bank | Age | Qualification | Admission |
| Kotak Mahindra | There is no minimum age/Maximum age of 21 years | There is no minimum age/Maximum qualification | Must have got admission in the foreign university. |
| HDFC | No age limit | 50% marks in HSC or Graduation | Admission in the university |
| Axis Bank | Between 16 to 35 years | There is no minimum age/Maximum qualification | Must have got the admission letter |
Public Bank Education Loan Eligibility
| SBI | There is no minimum age/Maximum age of 21 years | There is no minimum age/Maximum qualification | Must have got admission in the foreign university. |
| BOI | No age limit | Completed HSC or Graduation | Admission in the university |
The students who are seeking education loans are advised to visit the particular bank and ask everything about their various types of education Loans. Choose the education loan which is the most suitable for you. If you have any queries, feel free to ask us through the comment section. Thanks!
