Education loan

Education loan is offered by leading banks in India to help students achieve their academic dreams. Education loan Interest rates start from 7.30% p.a. with loan tenures of up to 15 years. Education loans are offered for higher education in both India and abroad.What courses are eligible for an education loan will be decided by the lender. You can get an education loan for studies starting from Nursery. For higher studies, you can get a loan for full-time as well as part-time courses, and loans for working professionals.

Education Loan Schemes PNB 7.30% onwards Up to 15 Lakhs 1% of loan amount SBI 7.97% p.a. - 10.05% p.a. Above Rs. 20 Lakh Rs.10,000 + tax Axis 13.70% to 15.20% Up to 7.5 Lakh Nil to Rs.15,000 + tax Bank of Baroda 8.25% to 10%* Up to 4 Lakh and above 1% of loan amount up to Rs.10,000 HDFC For preferential rates contact HDFC Max Apr Up to 1.5% of loan amount + tax Tata Capital 10.99% onwards Up to 30 Lakh Up to 2.75% of loan amount + tax Union Bank of India 6.90% onwards Need-based finance Nil for Indian students 0.50% of loan amount + GST for NRI students Bank of India 9.10% onwards For courses in India: Up to Rs.10 lakh For courses abroad: Up to Rs.20 lakh Nil for courses in India Rs.5,000 + other fees for study abroad Kotak Mahindra Bank Up to 16% For courses in India: Up to Rs.10 lakh For courses abroad: Up to Rs.20 lakh Contact the bank ICICI Bank For courses in India: Up to Rs.50 lakh For courses abroad: Up to Rs.1 crore Federal Bank 10.05% onwards For courses in India: Up to Rs.10 lakh For courses abroad: Up to Rs.20 lakh Education Loan Eligibility Indian citizens Non-Indian Residents (NRIs) Overseas Citizens of India (OCI) Persons of Indian Origin (PIOs)Students born to Indian parents abroad and wish to study in India Undergraduate programs/Postgraduate programs/Doctoral courses and PhDs Certificate courses with 6 months or longer duration Job-oriented courses Technical/diploma/professional courses Recognized institutions and government colleges Private institutes aided by government Professional institutions International colleges and universities Collateral-free loans up to Rs.7.5 lakh from leading lenders Collateral-free loans up to Rs.40 lakh for select courses/institutions from select lenders Acceptable collateral: Residential or commercial property or plot, fixed deposits, insurance Loan amount: Up to Rs.1 crore Most lenders allow you to make part prepayments on your loan every year. If you wish to make such payments, you can enter the details in the calculator and the result will tell you how much you will save on interest payments and by how many years your tenure will reduce. List of Courses that are Covered under an Education loan Nursery to class 12. Graduation and Post-Graduation courses (technical/professional/diploma) conducted by approved universities or colleges under UGC/IMC/AICTE/government. Regular degree/diploma courses administered by autonomous institutions such as IIM/IIT, etc. Regular degree or diploma courses such as pilot training, aeronautical, shipping, and more approved by the Director General of Civil Aviation/Shipping/other regulatory authority. Job oriented courses (professional/technical) for Graduation/Post Graduation/Diploma such as MBA/MCA/MS offered by reputed educational institutions, courses conducted by the Chartered Institute of Management Accountants (CIMA) – London or Certified Public Accountant (CPA) – USA. Loans for skill development. Abroad Job oriented courses (professional/technical) for Graduation/Post Graduation/Diploma such as MBA/MCA/MS, etc. offered by reputable institutions. Courses conducted by CIM A and CPA. List of Expenses Covered in Education Loan Here’s what the loan amount will cover: Tuition fees Hostel fees Travel expenses passage money for students studying abroad Insurance premium Cost of books/equipment/instruments/uniform Examination/laboratory/library fees Cost of a computer/laptop required for course completion Caution deposit, building fund/refundable deposit supported by institution bills/receipts Any other expense required to complete the course such as study tours/thesis/project work Features & Benefits of Study Loan Loan financing up to Rs.1 crore available. Loan repayment tenure up to 15 years. Get Education loans for studies in India and abroad. Some lenders offer loan disbursal before applying for a Visa. Door-step service to collect required documents. Children of the bank’s employees enjoy preferential rates at several banks. Certain banks offer concessional interest rates to female students. Enjoy a moratorium period of up to 1 year after course completion. During this period, you do not have to make payments on the loan. Enjoy tax benefits up to 8 years on the interest paid. Tax Benefits on Education Loan You will get tax deduction on the interest paid on your education loan under Section 80E of the Income Tax Act, 1961. This benefit is only offered to individual borrowers and for the purpose of higher education. The deduction covers all fields of study in India and overseas. It also includes vocational as well as regular courses.Please note that the tax deduction is only applicable on the interest portion of the EMI and not the principal. However, there is no maximum limit to claim this benefit. You will require a certificate from your bank or financial institution segregating the principle and interest portions of your EMIs to claim this benefit.You can claim this benefit for 8 years from the year you started repayment or until the interest portion of your loan has been repaid, whichever occurs first. List of Documents Required for Education Loan Here is an indicative list of documents that most lenders ask: Admission letter from the educational institution Marksheets (previous education – school/college) Age proofID proof Address proof Signature proof Salary slips Recent bank account statements ITR with income computation Audited balance sheet Recent bank statements Proof of turnover (service tax return/sales receipt) Completed application form with signature Latest passport size photographs Appropriate Visa for studies abroad*Document charges may be levied by the lender. How to Apply Education Loan There are several ways of applying for a student loan:This is the easiest and the most convenient way of applying. There are two ways of applying online. The first is a straightforward application form that you will fill online, attach the necessary documents, and submit the form.The second is where you apply through providing all the requested details and the lender will then get in touch with you to discuss the terms of the loan before proceeding with the application.Visit a Branch: You can apply for a loan by visiting your nearest branch with the necessary documents, discuss the terms of the loan with a representative, fill the form, and apply in person.Call the Lender: You can either call the lender or request a call back by expressing your interest. You can then discuss the loan terms and proceed to apply.