With education getting more and more expensive, education loans come very handy nowadays to students willing to pursue courses from good institutes and universities. This loan can be availed for studies in India as well as abroad. Generally, for students, either their guardian or parents act as the guarantors. In case you institute has a tie-up with any bank, you might receive better interest rate than what they offer generally. Some banks offer an extra benefit of 50 base points (bps) to female students. One bps is equal to one hundredth of a percentage.
Comprehensive personal loan for students in India would cover all expenses including tuition fees, hostel fees, cost for stationery, laptop, examination fees, travel cost, etc. Apart from availing loans for universities and institutes, special education loans are nowadays also availed for coaching institutes.
The principal amount in education loan ranges from Rs. 50,000 to Rs. 75 Lakhs. Depending on the bank and various schemes, the interest rate on education loan starts from about 6.6% and goes up till about 15%. The banks pay the loan amount directly to the institute. You can also claim tax deduction on the interest you pay on education loans under the section 80E of the Income Tax Act.
Education Loan Eligibility in India
The primary factor for availing an education loan is the historical academic performance of the student. Apart from that, here are the main criteria:
- The student must be a resident of India
- He/She should have confirmed admission from a reputed institute either in India or abroad
- The loan must be either for graduation or post-graduation or a PG diploma
- The student must fall under the age bracket of 18 to 35 years
Once you check the eligibility criteria, you can start the application process.
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- Duly signed application form affixed with passport size photographs
- Copy of mark sheets for 10th, 12th or equivalent
- Copy of mark sheets for graduation or post-graduation, if applicable
- A detailed statement on the cost of the education
- Aadhar card and Pan card of the student and parent/guardian
- Age proof, identity proof, residence proof, income proof of the parent/guardian
For the first disbursement, you would also require the following documents:
- Demand letter from the institute
- Loan agreement, disbursement request & sanction letter signed by the applicant & co-applicant
- Documents for collateral security (if applicable)
- Form A2 will need to be signed and submitted in case of overseas institute
How to get Education Loan Easily?
Here are some factors that would strengthen your education loan application:
- Good academic record throughout
- Strong financial background of parents/guardian
- Secured admission in a top institute
- High score in the entrance exam
- Prospects of future earnings
Short Instant Digital Loans from PaySense
Now that you are aware of the education loan details, make sure you are perfectly prepared for it. An education can surely help you learn something great from the institute of your choice. In case you need a smaller amount of up to INR 2 Lakhs for education loan purposes, at PaySense, we offer instant digital loans. You can get them approved digitally without any hassle in three simple steps.
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