An education loan helps you pursue your career dream. Education Loans come handy not just in providing the admission and tuition fees, but also in pushing payments associated with accommodation, food, books and stationery and more.
As you prepare up for the university admissions, you will come to know the expenses of the study and also the provision of the educational loans in providing you admission in your dream universities. Going abroad for studies also improves your career opportunities. Education loans have improved the chances for the students in getting admission to their favourite universities.
Nowadays, getting an educational loan is not a risky process, but you will need to know various things before applying.
Eligibility for Loan
You must always check the eligibility criteria of the different banks in the case of educational loans. It is mandatory to be the citizen of the particular nation in which you are applying for the loan. The banks offer loan only for full-time students and also they check whether the candidate is taking admission is recognised by a competent authority in India or abroad.
The candidate must be 18 years or more to apply for a loan, or else the loan can be applied in the name of the father/mother. For large loan amount, the bank will ask for some security collaterals.
The candidate taking loan up to 4 lakhs will not have to produce any collateral, but the loan amount greater than 4 lakh will require collaterals.
You must not always stick on to a single bank. Take adequate information on the interest rate in different banks and apply with the banks with the lowest interest. Normally, the educational loans have low interest than other loans, so always confirm the interest rate before finalising the loan. Stay well notified about all of these details- you wouldn’t want any sudden surprises here!
At the same time, you take a loan, be well informed on the repayment. The banks in India will ask normally for a down payment of 5 percent at the time of taking a loan. It is 15 percent in case of a loan for abroad studies. The banks offer a relaxation period before the repayment of the loan. It is usually 6 to 12 months. This may vary from one bank to another, so say well informed on the repayment and the loan tenure.
Terms and Conditions
Go through all the terms and conditions given on the application form, before proceeding with the request. The different banks will have different clauses for the loans. Properly, have an idea of the repayment process and also the fine amount of missing the loan repayment.
Stay informed on all these points before taking an educational loan. You can also keep some of the documents ready for the easy approvals of the loan.
You will need an ID proof to prove your identity and residential address. Apart from the personal proof, you will have to submit the proofs of the admission taken in the universities.
The fee structure issued in the universities and also the income proofs of the parents must be presented.
The candidates applying for a loan to abroad studies must present their passport and visa.
When all the documents submitted by the candidates are verified, it will be given for processing and may take up to 15 days to get sanctioned. Now, with the easy availability of the educational loan, don't miss out your chance to study in your dream universities!