Education loan| Educational Loan| Education Loan in India| Eligibility Criteria, Documents Complete Information of Education loan

Eligibility Criteria, Documents Complete Information of Education loan in India

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The academic year has started and so the admission process. Admission fees of colleges has reached heights in the past few years making it out of reach for most of the peoples. Taking Education Loan has proved to be convenient for most of the students. For getting admission in renowned medical, engineering and fashion designing colleges may cost you 7 to 10 lakh rupees.  Fees for pursuing MBA from good B-schools is even higher and may cost you 15 to 25 lakhs per year. It is impossible for most of us to pay such a hefty amount.
Getting scholarship is another option.There are many government and private scholarships that are granted to students for higher studies. But it is not necessary that everyone will get it.So parents and students find convenient to take education loan. Before applying for education loan it is necessary to know the process and criteria to get the same. Banks have included various courses in their loan list and it has become easier getting education loan. Before applying for education loan you must know the following.

Read More: Complete Guide of SBI Education Loan

Fees covered by loan

• Admission fees
• Exam fees
• Library and hostel fees
• Tour cost for studying abroad
• Books and equipments cost
• Cost of project and study tours

For getting education loan there are certain terms and conditions that need to be fulfilled. You must fulfil the banks eligibility criteria and must have complete documents required for the process.

Eligibility criteria

Two most important criteria’s are:

1. Applicant must be citizen of India
2. He/she must have got admission in recognized institute

There are other criteria’s too. Some banks have age limit of 15 to 35 years for the applicant and ask for minimum 50% of marks in the previous exam.While some banks ask for margin money that needs to be paid for getting education loan. You can consider it as down payment similar to the one we need to pay when buying a bike on EMI. If in case applicant fails to pay margin money then his application gets rejected automatically. For this education loan one of the earning parent or spouse are made co-applicant.

Documents requirement for loan:

Along with the application form applicant needs to submit following documents.

• Id Proof
• Address Proof
• Bank Account Statement
• Income Tax Returns
• Tenth, Twelve and Degree Course Mark sheet
• Admission Receipt
• If candidate is applying for scholarship then documents regarding it should also be attached

Get complete Information

Before applying for loan from any bank you must look out for interest rates offered by different banks. Some banks don’t charge for processing fee. Some banks ask for some kind of security. You must read the policies of banks carefully before applying for any kind of loan to save you from future problems. Some banks charge less interest rate like “Oriental Bank of Commerce” charge 10.25% interest for courses in IIM, IIT and ISB. For courses in other institutes the interest rate is 12.75% to 13.25%. Usually government banks charge 0.5% to 1% less on monthly basis. As per IBA rule allocation or rejection of loan must be conformed to applicant after submission of application form within 15 days.If loan petition is rejected applicant has the right to know the cause.

Repaying the loan  

Loan taken from the bank must be repaid after six months or 1 year after completion of course. If the candidate gets job then repayment of loan starts after 3 to 6 months.Loan can be paid from a duration of 5 years to 15 years as per convenience. If candidate fails to complete his course within course tenure then bank can grand an extension of 2 years. Students can also repay the loan even while studying.

If candidate fails to pay the loan back then notice is sent by the bank to candidate also guarantor is also contacted. Bank can even seize the property and your credit may also go down.So make sure to pay the EMI regularly and if there is any problem then inform the bank. So don’t let money be a barrier of your dreams.