All That You Need to Know About Educational Loans

Posted by vishal tambe on August 9th, 2019

Educational loans are loans that are provided by banks and non-banking financial companies (NBFCs) to finance a student’s further education either in India or abroad. Nowadays, education has become really expensive and even the students who have the intellect to study further have a hard time affording further education. Most banks and non-banking financial companies (NBFCs) give Educational Loans at a certain rate of interest with flexible repayment options. Educational loans give students the opportunity to get an amazing education for a bright future. Though, educational loans are quite expensive, they provide funds for almost every part of a student’s education from the tuition fees to accommodation expenses, etc.

Some features of educational loans are:

-          If the student is applying to an educational institute in India, then the educational loan can be obtained for a minimum of 10 lakhs and a maximum of 15 lakhs. If the student is applying to an educational institute outside India, then the maximum limit is 20 lakhs.

-          While obtaining the educational loan, the course type and income of the family is considered.

-          If the student is a female, then they can avail a discount and low interest rates.

-          If the student is applying for an educational loan of less than 4 lakhs, then there is no need for a guarantor.

-          The student can take Study Loans for both India and foreign countries.

-          In the case of educational loans, there is a moratorium period wherein the student does not need to repay the loan. They can repay it once their course is completed.

An educational loan is of great help to students who want to go out of India to complete their studies or students who want to do a professional degree such as MBA or Masters from a reputed university in India.

Some benefits of educational loans are:

-          The tenure of the loan can be extended up to 5 to 7 years after the course has been completed.

-          Students get a financial backing for their education.

-          If the loan is of a small amount, collateral or security is not required.

-          An educational loan can be obtained for almost any course.

-          Most educational expenses like library fees, accommodation fees, etc., are covered with educational loans.

Different banks and non-banking financial companies (NBFCs) have different criterion for eligibility. Educational loan eligibility calculators can be used to check the eligibility of the student. If all the criteria are satisfied, then the educational loan is disbursed. The eligibility criteria are:

-          Student has to be Indian or have an Indian passport.

-          Student must be within the age brackets.

-          Student must have proof of admission.

-          The co-applicant needs to have a stable income.

-          The co-applicant’s credit history needs to be clean. 

We hope this article gave you all the information you need about educational loans. We wish you the best with your future endeavors. Good luck!

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