Apart from banks, for the past few years, NBFCs have also started offering education loans. Due to this, taking an education loan has become easy.
Education Loan: If you want to fulfill the dream of higher education of your son or daughter, then Education Loan can ease your problem . You get an Education Loan at an interest rate of 7.30% to 15% per annum for a tenure of up to 15 years . If you get admission in a good college or university, then banks also give loans at low interest rates .
Here we are going to explain to you all the aspects related to Education Loan.
From which bank to take loan?
For the last few years, apart from banks, NBFCs have also started offering education loans. This has made it easy to take an education loan, but you should not prefer banks or NBFCs just on the basis of low interest rates. Choose the bank only after understanding the terms of repayment and prepayment rules of the loan .
Know what other expenses are involved in the loan process and choose the best option only after comparing what other banks have to offer in the market.
| Interest Rate on Education Loan |
| Bank | Annual interest rate | Loan amount | Processing fee |
| PNB | Starting at 7.30% | up to Rs 15 lakh | 1% of the loan amount |
| SBI | 7.97% to 10.05% | above 20 lakhs | Rs.10,000+ Tax |
| Axis Bank | 13.70% to 15.20% | up to 7.5 lakhs | Up to Rs.15,000+ Tax |
| Bank Of Baroda | 8.25% to 10% | Rs 4 lakh + | 1% of the loan amount or maximum Rs.10,000 |
| HDFC | Starting at 7.60% | No limits | 1.5% of loan amount + tax |
Document
Before giving the loan, the bank checks the documents like university admission letter , academic record of the student , break – up of expenses , income source of parents, Aadhar, PAN card, address proof and visa approval papers .
Down payment
If the loan amount is more than Rs 4 lakh, then banks want you to pay 5% in an Indian institution and 15% in an abroad institution as a down payment for admission fees .
If the loan amount is huge, then you will have to deposit collateral worth more than the loan amount . If you get child admission in a good placement record College received bank can give relief Koletrl so .
Pre-approval
When you start preparing for the test for admission, you should start preparing for the loan . Many times a loan approved in advance can be of great benefit and money comes in your pocket at the time of need .
While applying for higher education in a foreign university, it is beneficial to have an approved loan in advance because the university there asks you for information about the funds and proof of resources with you .
The sooner you start the education loan process, the more time you will get to compare loan offers and you will be able to choose better loan options easily .
Payment holiday
Repayment holiday is a good feature. With this feature, you are free from EMI payments for 12 months after completion of the course or 6 months after getting the job . If you do not get a job immediately after the completion of the course, then this feature will be beneficial, but as soon as your financial condition becomes good, then start paying the education loan immediately.
