How to Get the Right Education Loan in India?
William Shakespeare wrote in his Hamlet, ‘neither a borrower nor a lender’. However, many people want to live according to this quote, but nowadays it is becoming extremely impossible.
Whether it is investing in a property or trying to pursue higher education, even though borrowing has become common through home and educational loans, respectively.
Education: As is said by Durant Education, our progressive search of our ignorance is. Specifically, in the current competitive job market, a person can get decent jobs when he receives minimum basic degree qualification from a recognized university.
If your parents have not planned for your education in your childhood, then such students need some financial assistance to meet their educational needs and this is where the educational loan is actually easy. Could
Educational Loans: With increasing curriculum fees and other related expenses every year, there are no alternatives left for seeking some financial assistance from some students.
Nowadays, in India, the fee to be paid towards engineering degree course is between Rs 5-10 lakhs, while for a five-year medical course, its cost is Rs. 5 million
For PG courses like Master of Business Administration, its cost will be around Rs. 10 lakhs. Compared to government-run educational institutions, the fees imposed by private institutions are also higher in India.
What is the need for educational loans in India?
Prior to applying for a loan, it is important that students should check to meet the following requirements:
- Students can not apply alone and should be co-applicants like parents, siblings or spouse
- If the requirement is between Rs. 4-7.5 million, it is important that a third party should be guarantor
- For more than Rs. 7.5 million, a collateral is important
- The borrower will have to initiate a repayment within six months from the date of completion of the course.
- If he does not pay the money, he will also affect his credit history and co-applicant’s history.
- If the actual borrower goes abroad, the co-applicant will be charged from the co-applicant if he is his / her parent.
- When a student applying for a loan to study abroad, he should seek sponsorship or part-time job
- When it comes to foreign courses, insurance is also mandatory.
Documents required to apply for loan
Applicants will have to submit the relevant application form which can be obtained from specific bank or financial institution. With the application, it is important that it must submit copies of the following documents. These documents are usually made mandatory by most banks; However, there may be some differences between some banks or finance companies:
- Mark sheet and certificate of last qualifying examination
- Access proof
- Schedule of expenses for special courses
- Copies of letters confirming that the student is eligible for a loan
- If it is for foreign education, copies of foreign currency permits should be enclosed.
- Normally, 2 passport size photos will be required and this number may vary in some banks.
- If the person is salaried, then he should submit the salary slip, which has details about the date of joining and should also be attached to the latest 6-month bank statement of salary account.
- If it is self-employed, copies of the last two years of income tax return should be deposited with income calculation
Rate of interest:
While applying for educational loans, it is important that students should check the rate of interest, so that they can decide whether they can pay the interest without any difficulty.
In the current circumstances, interest on education loan is levied between 11.75 to 14.75%, which varies on the basis of the respective institution or college and on the basis of lending amount.
For higher education in major institutions, banks usually provide discounts to women students and special offers are offered by public sector banks in India.
The beautiful thing about education is that no one can take away from it at any level in your life. So, you can consider education as your property.
After comparing the eligibility requirements, interest rate and repayment terms of various banks, you can apply for the right academic loan from the right lender.
Once loan has been approved, use it best and remember that the efforts you are making in this academic phase will give you us