Empower Your Dreams with Easy Education Loans
Education loans help students achieve their academic goals without financial stress. Whether you’re planning higher studies in India or abroad, our education loan solutions provide the financial support you need to build a successful future.
Education Loan Features
1
Avail high value loans
Before applying for the loan, persons/entities must know their credit score, decide the loan amount, do some market research, evaluate business loan options, and keep the documents ready.
2
Enjoy attractive interest rates
Proof of address & identity, owning proof of the promoting business, credit income proof, partnership deed or partnership firm, articles of association, PAN card, etc.
3
Pre-Admission Sanction
Applicants should be aged between 21 to 65 years, having business vintage of a minimum of 3 years. The minimum business turnover and a minimum annual turnover as per the ITR will be required. The business should be profit making for at least the last 1 year.
Features and Benefits of our Education Loan
- Moratorium Period: Repayment typically starts after the completion of the course, providing students time to secure employment.
- Co-borrower Option: Parents or guardians can be co-borrowers to enhance eligibility.
- Tax Benefits: Education loan interest is eligible for tax deductions under Section 80E of the Income Tax Act.
- Multiple Courses and Institutions: Loans are available for various courses, from undergraduate to higher studies, and for institutions in India and abroad.
- Collateral and Non-Collateral Loans: Depending on the loan amount, some may require collateral, while smaller loans might be available as unsecured.
Eligibility Criteria
- Age: Most lenders have a minimum and maximum age requirement for the applicant. Typically, you need to be at least 18 years old to apply for an education loan.
- Course/Program Eligibility: Education loans are often tied to specific educational programs or courses. Lenders may have a list of eligible institutions and programs that they will fund for.
- Admission Offer: Many lenders require proof of admission to an eligible educational institution before approving a loan application.
- Academic Performance: Some lenders might consider your academic performance, such as your eligibility to apply. This is especially true for postgraduate or professional courses.
- Co-borrower or Guarantor: Most education loans require a co-borrower or guarantor (usually a parent or guardian) who will share the responsibility of the loan if the student is unable to repay.
- Credit History: Students as well as their co-borrower / guarantor’s credit history and credit score play a significant role in determining your eligibility for an education loan. A good credit history and high score can improve your chances of approval and help you secure a lower interest rate.
- Income/Financial Ability: Some lenders may consider your ability to repay the loan based on your own or co-borrower’s income.
- Loan Amount: The loan amount you’re requesting can affect your eligibility. Lenders may have specific limits on the loan amount they are willing to provide.
- Collateral: For larger loan amounts, lenders might require collateral such as property or other assets. This is especially true for loans that exceed a certain amount. The loan value is then calculated according to the current market value of your property.
- Documentation: You will also need to provide various documents as part of your loan application, such as proof of identity, proof of admission, income documents, and more.
Documents Required to Apply for Education Loan
- Admission Letter
- Academic Certificates
- Income Proof (Salaried/Self-employed Co-borrower)
- Identity Proof & Residence Proof
- KYC Documents of the applicant and Co-borrower / Guarantor
Education Loan EMI Calculator
- EMI = Equated Monthly Installment
- P = Loan principal amount
- r = Monthly interest rate (Annual interest rate divided by 12)
- n = Loan tenure in months
Fees and Charges for Education Loan
| Particulars | Charges |
|---|---|
| Loan Processing Fees | Up to 2% of Loan Amount |
| Loan Cancellation | Nil |
| Stamp Duty Charges | As per actuals |
| Legal Fees | As per actuals |
| Penal Charges | Usually @ 2% per month; 24% p.a. |
| EMI / Cheque Bounce Charges | Around Rs 550 per bounce |
Other fees and charges that lenders may levy on your personal loan include documentation charges, verification charges, duplicate statement charges, NOC certificate charges and swap.