In India, literacy rate is increased from 64.84% to 74.04% according to 2011 census. Gradually education is improving in India to compare those olden days. People have realized the value of education, so even in rural areas many government schools, colleges, coaching classes have opened.
It is good progress to see the growth of education rate day by day. But at the same time, demand in education loans are also high across the country.
Everyone has a dream to study Medicine, Engineering, and Business Management etc. This directs to go for education loan in the majority. Nowadays, it is very difficult to complete higher education without education loan. So education loan has become a boon for all the students to fulfill their educational career.
Private medical colleges demanding forty to fifty lakh, for engineering course it will cost 5-6 lakh, Post graduation course fees for complete term 10 lakh, fee structure will vary according to the different courses. Apply for student loans are the only best option to complete student’s higher education.
Necessity Requirements to get Education Loan in India:
- If there is a Co-applicant, then it is very easy for loan approval. Co-applicant can be parents, siblings, spouse or guardian.
- If you are opting for foreign courses, insurance is a must.
- If education loan is for four to seven lakh, it is mandatory to have a third-party guarantor, if it exceeds 7.5 lakh, there is the necessity of property security.
- After the completion of any courses, there will be the time from six months to one year to repay the education loan every month.
- If a student is in abroad after his/her higher studies, the co-applicant needs to pay the education loan.
Basic Information before applying for Student Loan
After post-secondary school education, students prefer to go for education loans. To help the students there are many money lenders available. Each money lender has different interest rates, terms and conditions to provide education loan. Even nationalized banks, private banks have their own procedures and conditions to sanction education loans to students.
It is pretty much good to have knowledge about all banks and lenders to borrow money. It is better to do proper research about the lender and interest rates to proceed further. Go for less interest and more discount providing banks to get the education loan.
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To get an education in Indian colleges, Banks will offer loans up to Rs 10 lakh and for studies in abroad, it will sanction up to Rs 20 lakh. Sometimes student loans will vary from 2 lakh to 20 lakh depend on the course and colleges in India. These loans cover fees for examination, laboratory, library, equipment, instruments, books etc ..
How to get the student loan in India ?
Nowadays, private colleges are demanding donations to compare government colleges. But still, students prefer to study in private colleges due to its infrastructure and facilities. In India, you can see many best institutions, schools, colleges, universities to provide education for students.
At first, decide which course to choose to improve your career. Select the college or institutions which having all facilities for your education growth. Make a proper estimation how much money need to borrow as an education loan to complete your term of education. Need to check will it be refundable every month after your education course completed. Once you familiar with all these above details then opt for education loan. This is the best step to apply for a student loan in India.
If you are applying for education loan from a lender or any banks, they will check whether a student has secured admission to a course, the quality of the college (is it recognized by the All India Council for Technical Education or the University Grants Commission), can student get better job placement after the completion of course, credit history of the co-applicant. Once they are satisfied with all these above verification then it will be easy to get a student loan in India.
At present in India, education loan interest is between 11.75 percent and 14.75 percent. Public sector banks will offer 25 percent discount for female students. All banks will provide six months to one-year duration to repay the loan after education completion. The students should get the job and start to repay the money, if they have not got any job after one year, the co-applicant need to pay the education loan. Under section 80-E of the Income Tax Act, the borrower can avail the benefits once he/she starts to repay the education loan.
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Best Banks to apply for student loan
State Bank of India provides 13.35 percent interest per annum up to Rs. 4 lakh, Between Rs. 4 lakh to Rs. 7.5 lakh it is 13.60% interest, if exceeds Rs. 7.5 lakh it will be 11.60% interest. Axis Bank offers 16.95% education loan interest up to Rs. 4 lakhs, Punjab National Bank provides 13.00% interest up to Rs. 7.5 lakh. HDFC Bank also gives best education loan facility for students in India.
Helpful tips to Repay Student Loan
- Check the grace period time and start to pay the student loan.
- Better not create any dues; it will create the problem in future.
- Every month pay the education loan without fail, this helps to reduce your interest rate.
- Your payment of the loan is based on current earnings; try to save more money till you complete your education loan. If there is any emergency then submitting an income-related paper is the best option? It avoids unnecessary demanding from the lenders.
In India, apply for a student loan is not a difficult task, this results in literacy rate to improve. But if students delay repaying the loan, it will affect the credit history of students and co-applicant. Be smart in borrowing and paying your education loans can solve your all education issues and improve your great career.