The plain and simple answer is, yes you can get loan for education received from coaching institutes. However, you must first understand the process, legalities, amount, and other nitty-gritties involved.
Nationalized banks like State Bank of India, Central Bank of India, and Corporation Bank have introduced a whole new product of loans catering just to the coaching needs and expenses of students. You can also avail the sum required for coaching expenses from other banks by availing their personal loans.
In the race of scoring the highest marks in order to secure admission in the best institutes, students from all across India are opting for private coaching and tuitions. In this age, when tutors would take care of providing personal attention and added advantage in learning, your chance of clearing competitive exams increases by manifold when you join a coaching institute.
Education loan eligibility criteria are generally also applied for coaching loans. If you have ever checked the details of education loan, the process of coaching loan would sound so much similar. Here are the process technicalities you will have to keep in mind:
- Under the coaching exam loans offered, the maximum loan amount is up to INR 2 Lakhs to be returned in EMIs in 2 to 3 years.
- The documents you’d need to apply for this would include identity proof, address proof, admission proof in coaching institute, fee receipt for the institute, supporting educational documents, and passport size photographs. Some banks might further ask for certain affidavits.
- Unlike personal or education loans, the loan amount is recovered from the parents as most of the students opting for this are minors. Verifiable proof of income would be required for the applicant’s father, mother or spouse to ensure the repayment capacity of the loan amount. In case of salaried personnel, the repayment period must end before the retirement.
- These loans cover competitive exams like CAT, JEE, GRE, GMAT, GATE, UPSC, AIJEE, AIEEE, NEET, PMT, etc. which are for professional courses including MBA, Engineering, Medical studies, Research, CA, CS, ICWA, etc.
- The institute for which you want to apply must be a reputed institute running successfully for a period of at least 3 years.
- Like most loans, you will need to pay margin money which is around 10% of the availed loan amount. You will also be charged a few hundred rupees as a basic processing fee.
- In case you put an asset as a collateral, you can further negotiate for the interest rate which is normally around 11% to 14.5% for these specialized coaching loans.
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