Student Success Unlocked: The Latest on Education Loan in 2023!

What Do You Mean By Education Loan Or Student Loan ?

Education Is The Most Important & Fundamental Right For Today’s Generation And This Must Be Provided To Them At Any Cost. It Is The Beginning Of This Generation’s Success And It Also Helps Our Country Getting Better.We Know That , In India Education Is Getting Expensive Day By Day .But People Shouldn’t Stop Pursuing Their Dreams Due To Lack Of Money. Students Who Have The Desire To Study Should Not Be Stopped Studies  Because Of Lack Of Financial Support.

There Are Number Of Students Who Depends On Educational Loan For Their Higher Studies In India Or Study Abroad. These Loans Are Usually Offered At Low-interest Rates And Come With Various Repayment Option.So The Main Objective Of Educational Loan Or Student Loan Is To Provide The Financial Support To Financially Poor Students For The Higher Studies.

In Other Words We Can Say That Education Loans Are Used To Fund For Higher Education for Coverages Like Tuition Fees, Study Materials,Accommodation, Food & Living Expenses Borne By The Students During The Course Of Study.Eligibility for Educational loans

Coverage: 

Following are covered by educational loans

  • Tuition Fees total
  • Complete food & accommodation charges
  • Fees for books, library and any lab or study materials
  • Any extra academic fee
  • Traveling expenses (If study in Abroad)
  • Other expenses related to studies

Maximum amounts

Maximum Amount Of Loan Varies Bye Various Bank.

Banks Like IDBI,AXIS,ICICI,HDC,PNB,UCO Etc Offer’s Approx 10 Lakh For Study In India And 20 Lakh For Study Abroad , 

While State Bank Of India Offer’s Approx 15 Lakh For Study In India And 30 Lakh For Study Abroad.

Documents required

The Most Important documents required for Study Loan Is Mentioned Bellow :

  • Loan Application Form Along With Photographs
  • Marks Cards And Certificates Of 10th And 12h 
  • Aadhar And Pan Card Of The Students And Parents/Guardian.
  • Proof Of Residence & Proof Of Address
  • Letter Of Admission Into The Institution
  • Estimation Card From Institution
  • Bank Statement Of Co Applicant / Guarantor
  • Proof Of Income Of The Guarantor

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Eligibility Criteria:

  • Must Be An Indian Citizen Or Nri With Indian Nationality.
  • Admission Must Be Secured In A Recognized University Or College In India Or Abroad.
  • Age Criteria May Apply (Usually Between 16 And 35 Years).
  • Co-applicant Or Guarantors  Required (Usually Parents Or Guardians) With Sufficient Income And Good Credit History.

Also Check Types Of Loans & Its Eligibility Criteria

Compare Top Education Loan Offers 2023 

The Banks That Provides Student Loans With Low Interest Rates Are SBI , Bank Of Baroda , UBI etc.

BankInterest Rate (p.a.)Loan AmountProcessing Fees
PNB7.30% onwardsUpto 14 Lakhs1% of the loan amount
SBI6.85% to 8.65%Upto Rs.1.5 croreRs.10,000 + tax
Axis13.70% to 15.20%Upto 10 LakhNil to Rs.15,000 + tax
Bank of Baroda6.5% to 9.5%Upto 5 Lakh and above1% of the loan amount up to Rs.10,000
HDFC9.40% to 13.34%Max AprUp to 1.5% of loan amount + tax
Tata Capital10.99% onwardsUpto 30 LakhUp to 2.75% of loan amount + tax
Union Bank of India6.8% to 10%Need-based financeNil for Indian students 0.50% of loan amount + GST for NRI students
Bank of India9.0% to 9.85%For courses in India: Upto Rs.10 lakh For courses abroad: Upto Rs.20 lakhNil for courses in India Rs.5,000 + other fees for study abroad
Kotak Mahindra BankUp to 15%For courses in India: Upto Rs.10 lakh For courses abroad: Upto Rs.20 lakhContact the bank
ICICI Bank10.5% onwardsFor courses in India: Upto Rs.50 lakh For courses abroad: Upto Rs.1 croreContact the bank
Federal Bank10.5% onwardsFor courses in India: Upto Rs.10 lakh For courses abroad: Upto Rs.20 lakhContact the bank

How to Apply for an Education Loan

There Are Many Ways Of Applying For A Student Loan:

Apply Online:

This Is The Most Convenient Way To Apply For Student Loan. This Is A Straightforward Application Form That Has To Be Filled Out Online, Attach The Scan Copy Of Necessary Documents, Submit The Form And Wait For The Response From Lender Side.And The Lender Will Then Get In Touch With You To Discuss The Terms Of The Loan Before Proceeding With The Application.

Apply Offline

Visiting A Branch: You Can Apply For A Loan By Visiting The Nearest Branch With The Necessary Documents, Discussing The Terms Of The Loan With Aloan Officer, Filling In The Form, And Applying In Person.

And Wait Till The Loan Gets Sanctioned.

By Vidya laxmi Scheme

vidyalaxmi Portal Application Form Is An Online Portal Launched By The Indian Government To Provide Information About Various Educational Loan Schemes Offered Bye Various Banks And Financial Institutions In India. It Is A Single Windows Platform For Students Who Needs Student Loan Or Education Loan  . It Is Also Known As Pradhan Mantri Vidya Lakshmi Karyakram (PMVLK).

Through The Vidyalakshmi Portal, Students Can Apply For Education Loans Online By Following These Steps:

  • Register on the Vidya Lakshmi Portal And Create An Account.
  • Fill in the Common Education Loan Application Form (CELAF) With Necessary Details And Upload The Required Scanned Copy Of Documents.
  • Browse and Select The Best Option From Multiple Loan Schemes Offered By Various Banks And Financial Institutions.
  • Then Check The Status Of Your Student Loan Application And Communicate With The Selected Banks Through The Portal.

Education Loan Repayment Process

The Loan Repayment Process Basically Starts From 1 Year After The Completion Of The Course Or 6 Months After Employment, Whichever Comes First.Various Moratorium Periods By Various Lenders Are Given When It Comes To Repaying Their Loans. You Will Be Repay Your Loan In EMIs.

However You Can Calculate The Repayment By Using Education Loan Repayment Calculator

Student Loan Repayment Calculator

Student Loan Repayment Calculator

This Is A Basic Student Loan Repayment Calculator Where You Can Get The Details Of MONTHLY REPAYMENT AMOUNT , By Entering Loan Amount , Interest Rate & Tenure.

Tenure:

The Repayment Tenure Can Vary But Is Generally From 10 Years To 15 Years Or More, Allowing Students And Their Families Sufficient Time To Repay The Loan.

Student Loan Forgiveness 

Student Loan Forgiveness May Sound Good To Many Borrowers, But Its Not A Good Idea For Indian Students. Because It Could Create A Misconcept And Encourage Irresponsible Repayment .They May Borrow More Than They Need , This Could Destroy The Credit Culture And Financial Discipline Of Borrowers.It could impose a huge fiscal burden on taxpayers and banks. However If A Student Drop His Study And Couldnt Complete The Course For Some Reson, Then Student Loan  Forgive Ness Is Applicable.

Frequently asked questions

What are the coverages included in an education loan?

Education Loan Covers Study Fees , Books And Expenses, Such As Traveling Fee, Fooding And Lodging, Etc.

What’s the maximum amount which one can get?

The maximum loan amount is vary bank by banks, whereas for study in abroad, you can get a maximum Loan .

What courses are eligible for education loans?

List of courses eligible for education loan are: 
1. Graduation and Post-graduation courses like BSc, BBA
2. Professional courses Like MBBS, BTECH
3. Diploma/degree course Like Polytechnic , biotechnology by recognized institutions.

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