Best Indian Banks For Education Loans – A lot of students in India cannot afford quality education, fortunately, banks are willing to provide loans to these kinds of students. This loan assists them in pursuing their higher studies. These banks also provide a list of courses and institutions they offer the loan to, so as a student, you will need to go through the list to see if your desired university or college is included. So, if you are seeking banks to obtain education loans from, this article is for you. In this article, we would explore the best Indian banks for education loans. We will also discuss the requirements and eligibility criteria for obtaining education loans from the banks. Let’s dive in.
Best Indian banks For Education Loans
Below are some of the best Indian banks for education loans you should check out.
1. HDFC Bank Education Loan
If you want to study in India or abroad, consider HDFC bank. The maximum amount they give if you want to learn within India is 50 Lakhs, but if you want to study overseas, there is no limit; they will cover every expense. However, for foreign schools, you will be required to give them collateral like a fixed deposit or asset. The interest rate for Indian and foreign schools is around 9.55% to 13.25%. The loan, which includes a moratorium, will be granted for twelve months, and it won’t come to your account. Instead, it will be paid to the school’s account based on their school fee structure. However, if you are going to study a skill development course, you may need to consider taking a personal loan because HDFC doesn’t have a dedicated scheme for that.
2. Axis Bank Education Loan
The Axis Bank Education Loan usually offers Rs. 500,000 and above, depending on your need and eligibility status. The student loan is mainly for individuals who have completed their undergraduate programs and are seeking postgraduate courses. These students must score 50% marks in their HSC or graduation. If your loan is up to Rs. 4 Lakhs, the interest rate is 15.20%, and if it’s above Rs. 4 Lakhs but below Rs. 7.5 Lakhs, the interest rate is 14.70%. If it’s above Rs. 7.5 Lakhs, the interest rate is 13.70%. Axis banks usually emphasize parents’ or guardians’ profiles, your parents must show their regular source of income before you can obtain the loan.
3. Union Bank of India Education Loan
The Union Bank of India Education Loan is usually categorized into four schemes. The ones that allow you to study within India, those abroad, premier management and technical institutions within India, and tier II management and technical institutions in India. Regardless of the amount you want to loan, the bank will never charge processing fees, but you will be required to purchase insurance equal to the loan amount. For courses within India, the interest rate is up to 12.55%, and for abroad courses, it’s up to 10.80%.
4. IDBI Bank Education Loan
This bank usually offers up to Rs. 20 if you want to study within India and up to Rs. 30 for abroad courses. The IDBI Bank loan provides people with AICTE, UGC, ICMR, and other government-approved courses. If you also got admission via a management quota, you can consider the IDBI loan. The loan duration is up to fifteen years, but you must provide them with substantial collateral of up to Rs. 7.5 Lakhs. The interest rate of Rs. 7.5 lakhs is 10.60%, and for above Rs. 7.5 Lakhs is 11.10%.
5. State Bank of India Education Loan
The bank offers a maximum loan amount of Rs. 1.5 crores under a foreign studies scheme. This bank is among the best education loan banks because it provides the lowest interest rate among the ones we mentioned. The loan is extensive for excellent students seeking to start a professional or technical course in schools like IITs, IIMs, and NITs; this interest rate for all schemes is between 8.55% to 11.15%.
6. Punjab National Bank Education Loan
The advantage of the Punjab National Bank Education Loan is that it has no limit. It offers two different loan schemes, which include that for deserving students, and one for people that want to pursue higher education in colleges like the IIT, NIT, or other reputable schools. If you apply for skill development courses, the Punjab loan can also help you. They also offer specific loans such as PNB Honhaar for students in Delhi and PNB Bihaar for students in Bihar. The interest rate for all schemes is between 8.55% to 12%.
Who Is Eligible For An Education Loan In India
Having looked at the best Indian banks for education loans, let’s look at the eligibility criteria. Even though Indian banks provide loan schemes for students, it’s not everybody that can apply for it. The eligibility also depends on the Bank you are applying for the loan with, so the people that are eligible for this loan include;
1. An Indian resident: before you can apply for the loan, you must be an Indian resident
2. You must also have a confirmed admission from any renowned university in India or abroad.
3. You must be within 18-35 years old
4. You must also be doing an undergraduate program, a postgraduate, or a diploma.
5. You also have secured admission into a college or university that is affiliated with University Grants Commission (UGC) or All India Council for Technological Education (AlCT), or any other related councils.
6. If you are pursuing a full-time course, you must have a co-applicant; this co-applicant can be your guardian, parents, spouse, or parent’s inlaws if you are married.
7. The person that will serve as your co-applicant must also have a stable source of income.
8. To speed up the loan approval, you should have at least a solid academic record facility.
The Requirements For Education Loans In India
Aside from the eligibility requirements, you will also need to provide some important documents to the bank that aid in the loan process. These documents are;
1. A filled-in and signed application form is attached with your affixed passports
2. Two passports
3. A copy of your exam result for your 10th or 12th grade or any latest exam result you have
4. A statement that will describe your course and the cost of the study
5. Your Aadhaar Card and Pan Card and that of your Parent or Guardian
6. A card that will prove your age, such as Aadhaar Card, voter’s card, passport, or driving license
7. A copy of your identity card like your voter’s card, driving license, Aadhaar Card, or passport
8. Resident proof, such as Rental agreement
9. Your or your co-borrower bank statement of 6 months, guarantor, copy of Ration card, gas Book, Electricity Bill, or tel Bill
10. You must also provide income proof such as the most recent salary slip of your parent or guardian or co-borrower
11. Your six months’ bank statements or your banks updated passport
12. Your parents or guardian’s IT assessment order of the last two years or their updated Income Tax Return.
13. Liability or assets documents of your parents or guardians.
Tips To Enhance Your Chances Of Getting The Loan
When it comes to providing loans, most Indian banks for education loans are cautious, so they will thoroughly analyze your documents and ensure that your presents are genuine. If you want to improve your chances of getting the loan, below are ways to do so.
1. Ensure to score high marks in your qualifications exams
2. You will need to provide them with a great academic background
3. Ensure your admission is from a reputable school or top-tier institute or university.
Have a solid financial background from your parents, guardians, or co-borrower.
4. Provide them with better prospects for future work
There you have it! Above are some of the best Indian banks for education loans. Banks like HDFC Bank Education Loan, Axis Bank Education Loan, Union Bank of India Education Loan, and IDBI Bank Education Loan offers education loan to Indian citizens, so if you want to apply for one, check for eligibility status and ensure you have all the required documents. Good luck!
Frequently Asked Questions
Which bank is easy to get an education loan in India?
The easiest bank to obtain an education loan in India is IDBI bank
Which bank is best for education loans?
The best bank for education loans is HDFC.
What is an education loan?
An education loan is a type of loan designed to help students settle their educational expenses such as tuition fees, books, accommodation, and any other related costs.
What is the interest rate for education loans in India?
The interest rates for education loans in India vary depending on the bank or lender. Therefore it is important to compare the interest rates and choose the one that suits your needs.
Do education loans cover accommodation?
Yes, some education loans do include educational-related expenses like accommodation fees.
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