Saturday, May 14, 2022

How To Apply For Student Loan In India

Don't Miss

Enjoy Easy Disbursal Of The Education Loan

Education Loan Process in India | Everything About Student Loans for IPM IIM Indore/Rohtak

Education Loan will be disbursed in full or in suitable instalments taking into account the requirement of funds and/or fee schedule as assessed by the Bank directly to the educational institution or vendor of books or equipment or instruments.

*The quantum of education loan can be higher amounts, above these caps, subject to eligibility and cost, for case-to-case approval.

To Apply For The Loan One Must Be An Indian Citizen Having Secured An Admission Into A College/university Recognised By A Competent Authority In India Or Abroad

mutual fundsfixed depositsunit-linked insurance planseducation loanWhat does an education loan cover?Who can apply for the loan?Whom is the loan offered to?Types of courses covered under the loanEligibility, documents requiredincome-taxLoan financing, collateral requirementInterest rateRepaymentPrecautionsBenefits under Income-tax Acthere

Read More News on

Applying For An Education Loan

With the latest innovation in technology, applying for an Education Loan has definitely come a long way. However, there are various factors that students and their families should carefully comprehend before selecting their preferred loan institution. First-time students are advised to be closely in touch with their student coordinators abroad to be able to get an actual figure that they would require for the entire duration of stay in Singapore. After receiving the admission, students should estimate the amount they would self-finance and the amount they would borrow as a loan. With Banking and Non-Banking Intuitions introducing lucrative schemes, all year round, borrowers should do thorough research of the market before settling in on their choice. Factors that should determine their preferred loan institution are:

  • The interest rate offered by the Bank
  • The processing fee that would be levied
  • Expenses covered under the Education Loan
  • Time taken to process the loan
  • Repayment terms and duration

Once the borrower has decided on a bank, he would have to apply through the appropriate channel for his loan to be sanctioned.

Apply for Education Loan through Shiksha

Shiksha has partnered with Indias topmost and trusted loan providers who will assist you in getting an education loan. Find out more!

Also Read:

Recommended Reading: Usaa Refinance Auto

Entrance Exam For Jnuee 2021 Begins

The entrance exam for Jawaharlal Nehru University JUNUEE will begin today. These entrance exams will be held in computer-based mode. This is done to shortlist all candidates for admission into the programmes that are offered by the university . The JNUEE will be held till 23 September. The exams will be conducted in two shifts: 9:30 am to 12:30 pm and 2:30 pm and 5:30 pm.

21 September 2021

Contact At Least 4 Banks And Get Details On Their Education Loan And Interest Rates

Student Loan

This is the fun part. All you got to do is visit as many banks as possible in your area and collect their education loan details. Most banks will have a separate loan officer dealing with students. Contact him/her and collect all the pamphlets, flyers and other instructional materials. Ask them what interest rates do they offer student loans at. If possible, create a document comparing all the student loans. This will be very useful for you when actually applying for student loans later.

Also Check: How To Qualify For Loan Modification

Sbi Global Edvantage Predisbursement Policy

I need to pay my university fees beforehand to confirm my admission. Is it possible with SBI Education Loan policy?

Yes, it is possible with SBI Global Edvantage Loan and SBI Student Loan Scheme as well! Recently, more and more countries and universities have begun asking the students to make a significant payment at an early stage of their admission process.

If you plan to study in Australia, you will be required to pay the first-semester tuition fee to the university, and also set aside about Rs. 10 Lacs which is meant to cover your living expenses for one year. Only after you meet both these requirements can you confirm your university seat and apply for a visa.

If you plan to study in Germany, it is compulsory to create a blocked account of Rs. 7- 8 Lacs which is meant for living expenses, even before applying for a visa.

Similarly, many students have been required to make similar arrangements if they are planning to study in Canada, Ireland and even some specific universities in the USA.

Earlier, this used to be a problem as government banks do not traditionally allow students to disburse money from their Education Loan before the visa is sanctioned.

WeMakeScholars, for the past three years, relentlessly brought up this issue with the Corporate Centre of SBI and convinced them to make exceptions for students planning to study abroad. WeMakeScholars gave inputs to the SBI Corporate Centre on how to tweak their education loan policies to make it more student friendly.

How To Get Student Loan From Indian Banks

Easier said than done, right? Lets take an example.

Imagine youre a student who just completed standard twelve or school and now is pursuing career in Engineering or Medical and wants to go abroad for higher studies. What do you do?

The first thing to do is apply for admission at all the colleges abroad, which ever you think you can get through.

Second, get an idea about the course fees at those colleges.

Get their brochures, course duration information, placement services, job guarantee if any etc. Gather as many information as possible, so that you can make a presentable case to the bank, when applying.

Now, once you have created a good case for you, you have to secure couple more essentials the financials. This is the most important part.

Banks ask for collaterals and the better or safer your collaterals are, the higher your chances of getting a student loan.

Recommended Reading: How Can I Refinance My Car Loan With Bad Credit

Sbi Education Loan Launched By State Bank Of India With Low

The State Bank of India has announced the launch of a new student loan initiative. The bank announced in a press release that it is launching a financing programme called the “SBI Global Ed-Vantage Loan”. This SBI Education loan is special in that it is just for students who intend to pursue full-time academics at overseas colleges or universities. Stating that a number of students who prefer international educations to achieve their job goals is on a rise, SBI announced this education loan. This new loan is SBI’s attempt to make that possible and enable students to do so through a customised financial solution

Expenses Covered Under The Loan Include

How To Apply For Education,Student Loan In India 2020/Upto Rs 20 Lakh Loan/Full Procedure/South Boy.

Apart from tuition and accommodation fees, the loan would extend to costs incurred on travel, study tours, and project work during the entire duration of the academic year in Singapore. Apart from this, it would also include the purchase of books, laptop, stationery and other reasonable expenses that would be required to successfully complete the course.

Recommended Reading: How Do I Refinance An Auto Loan

Brief About The Types Of Education Loan

  • Collateral education loan– For a collateral education loan, the borrower pledges collateral to take a loan against it. Collateral could be a house, non-agricultural land, flat, fixed deposits, insurance policies, and government bonds. Based on the value of the pledged collateral and the students’ total expenses/ loan requirement, the banks offer the loan amount to students.
  • Non collateral education loan– As the name suggests the lenders do not take any collateral for an unsecured/ non collateral education loan but they have a set of requirements and give an education loan without collateral to only those who are deemed eligible for it.

What All Documents Required For Applying For Education Loan For Study Abroad

Before applying for an education loan, the applicant must be completely aware of the documents required to apply for a study loan for abroad. Following documents are required to apply for an education loan for abroad studies:

  • Filled application form
  • Residence proof: Resident proof of the applicant and the co-applicant
  • Academic documents:

o Mark sheet and certificates of the applicant

o Mark sheet of GRE, GMAT, TOEFL, IELTS, etc. whichever is applicable

  • Admission proof: Admission letter shared by the university or college.
  • Bank statements: Last six months bank statements of the co-applicant
  • Income proof: Income proof of the co-applicant
  • In case of collateral , it can be flat, home, or non-agriculture land the following documents are required:

o Property title deed

o NOC for a mortgage from builder or society

Document type

  • Urban clearance certificate

Read Also: What Credit Score Is Needed For Usaa Auto Loan

Why Do Loan Applications Get Rejected

Apart from failing the eligibility criteria set by the lenders, there are some unwritten rules based on which sometimes lenders reject students’ loan applications.

  • Undergraduate program – Private lenders do fund a UG program abroad if the university falls under the list but the chances are they will deny it at first as they prefer funding a PG program mainly due to the course duration being shorter compared to a UG program. NBFCs on the other hand rarely funds a UG program abroad, they consider funding only if a student’s financial co-applicant has an exceptionally good income source. Foreign lenders do not fund UG programs altogether.
  • Age of the applicant and co-applicant – Yes, age matters for NBFCs. For students older than 27 years, NBFCs are not willing to offer loans. They can consider at max up to 30 years if only the other profile parameters are good. As far as co-applicant, NBFCs won’t accept the profile if your co-applicant is retired or about to be retired in 3 years.
  • FOIR– A fixed obligation to income ratio or FOIR norm is only followed by the private banks. Private banks reject the loan if your co-applicant does not meet the FOIR norm, it basically means that the co-applicant’s obligations i.e the EMIs, are higher than how much he/she can afford.

Check If Any Banks Have Tie Up With Your Chosen Institution

How to Apply for a Student Loan in India

Next thing to check is how many banks have tie ups with your institution. Most prestigious colleges/universities have tie ups with certain banks for offering education loans. They might even have better interest rates. This is the low hanging fruit opportunity you must explore before even applying for loans to banks directly.

Read Also: Usaa Car Loan Reviews

Which Type Of Instruments Are Accepted As Collateral

Any type of liquid assets like bonds, FD, shares or any immovable property like the house, any commercial property or just land can be classified as collateral. One important point to keep in mind is that agricultural land is not accepted as collateral. Even shares, bonds, bank deposits, mutual fund units, gold, debentures, bank deposits, life insurance policy, and government securities, are also accepted as collateral.

What Do Banks Look For In Students Applying For Education Loans

Banks look for everything possible they can find about you. Your course of study, your previous marks and track record in college/school, your parents and their profession, your financial background, your assets . And then they put it all together to create a profile of you. Then someone from the banks risk assessment team will analyze your profile and say if you are trust worthy or not. What that means is, if the bank give the loan to you, can you be trusted to pay it back. Thats the only question banks are worried about.

Read Also: What Credit Score Is Needed For Usaa Auto Loan

Read The Agreement Carefully

This is one of the most important aspects to look after while taking the loan. We always suggest you go through the terms and conditions of the loan carefully and then move ahead with it. This is one factor we really stress upon, as you should always be clear with all the conditions mentioned in the loan agreement. If you have any doubts regarding anything then always consult the experts apart from the bank representative.

Eligibility Criteria For An Abroad Education Loan Without Collateral

education loan for abroad | hdfc bank | education loan in india
  • The academic profile of the Applicant is to judge the “Employability Potential of the applicant”. At least a minimum of 60% is required in 10th, 12th, and degree and also students with more than 3 backlogs may not qualify for an unsecured loan.
  • Financial co-applicants income, CIBIL score. This is the most important deciding factor for an unsecured education loan as lenders are not taking any collateral, they can stay assured if a student fails to repay the loan amount, their financial co-applicant would pay on the student’s behalf.
  • Course/Degree which an applicant is applying to. Courses like UG, PG in STEM disciplines are preferred by lenders over courses like Public policy or Aviation but never Ph.D., Mbbs, Theology, tailoring, etc.
  • The country also matters. They focus on major study abroad destinations like the US, UK, Canada, Australia, Ireland, Germany but they are skeptical about the less known countries like China, Ukraine, etc.
  • University you are going to. Private banks have a list of universities with them only for which they approve an unsecured loan.

If you find yourself ineligible for an unsecured education loan, do not worry, connect with the WeMakeScholars for your education loan process. WeMakeScholars is associated with 10+ lenders, and can still give it a try and talk to lenders for necessary deviations on your behalf as weve done multiple times before for students who otherwise were refused for the education loans.

You May Like: Do Loan Officers Make Commission

Sbi Education Loan Customer Care

How can I resolve my SBI Education loan complaint? Is there an SBI Education Loan contact number I can dial to have my issues resolved?

Yes! You have two options to resolve your SBI Education Loan complaint. First is to go through the official channel here! But frankly, if you expect some major help from this source, you are in for a disappointment. Your second option is to Get in touch with the National Digital Partner for the SBI Education Loan Policy. Through this source, you will have a quick, easy and free solution to your SBI Education Loan Complaint.

Documents Needed To Apply For The Sbi Global Ed

  • 10th and 12th Marksheet and Entrance Exam result
  • Admission letter/offer letter/ID card from the university as proof of admission
  • Schedule of expenses for course
  • Copies of letter conferring scholarship, free-ship, etc.
  • Gap certificate, if applicable
  • Passport size photographs of Student / Parent / Co-borrower / Guarantor
  • Asset-Liability Statement of Co-applicant / Guarantor

Read Also: 20/4/10 Car Calculator

Bank Of Baroda Education Loan

Maximum Loan Limit: Rs. 4 Lakhs for school studies. Up to 80 Lakhs for other education loans.

Bank of Baroda gives education loans for school education from nursery to 12th Std under the scheme Baroda Vidya. This scheme helps economically backward students get basic education from a reputed school.

The maximum loan amount is Rs. 4 Lakhs and the loan should be repaid in 12 installments. Bank of Baroda does not charge processing fees for any of their education schemes.

Other educational loans include Baroda Gyan for higher studies in India, Baroda Scholar for study abroad.

Education loan scheme
  • Slow processing of the loan application.

Expert Tips: Personal guarantee from an existing valued customer helps your loan application.

Availing An Education Loan From Axis Bank Requires You To Fulfil Certain Eligibility Criteria Find Out The Eligibility Criteria For Education Loan Below

How to Apply for a Student Loan in India

Axis Bank provides Education Loans for students looking to study in India and abroad. You can get a loan starting from Rs. 50,000 at attractive interest rates with benefits such as no pre-payment charges and no pre-closure charges. Find out the education loan eligibility criteria for availing an Axis Bank student loan.

The Education Loan will be provided to those students who have

  • Indian Citizenship
  • Secured at least 50% marks during HSC & Graduation
  • Who have obtained admission to career-oriented courses e.g. Medicine, Engineering, Management etc., either at the graduate or post-graduate level
  • Secured admission in India or Abroad through entrance test / merit based selection process post completion of HSC
  • Documents displaying regular income is mandatory for the co-applicant
  • The education loan eligibility will be determined by Axis Bank as per the Bank’s policy prevailing at the time of loan application and disbursement.

    Don’t Miss: Usaa Vehicle Refinance

    Check With More Banks In Another City/cities

    Heres a tip. Once you get all the details from banks, dont just settle down with what you got. Loan amounts vary significantly at different states and cities, so make sure you also check with other banks or even same banks in different cities. Sometimes, you might get a lower interest rate and better deal.

    Features And Benefits Of Student Loans

    Student loans are a great boon for people who want to study but struggle to do so because of financial constraints. The concept of banks paying for your education while you study and then getting repaid when you start earning is a great boost for banks as well as for your own educational growth. Here are some of the most significant features and advantages of student loans in India.

    Read Also: How To Get Loan Officer License In California

    Check When You Have To Start Repaying Your Loan

    This is a very important point that many students get a surprise for after theyve done their study. Most banks say on paper that their repayment starts after one year of passing out. But typically, while negotiating interest rates, they slip in a 6 months repayment period and many people fall for it. In my opinion 6 months is a very short time to find a job unless youre getting a campus placement. Make sure that you have enough time with you before the repayment time kicks in.

    More articles

    Popular Articles