Best education loan in India | Best Sudent Loan Apps in India | Best Student Loan Banks | Best Education Loan for Study Abroad

Best education loan in India

Study Loans or Education Loans are one of easiest and fastest to access in India. They are generally sought after by those people who wish to pursue higher education but lack the financial muscle to obtain it. There are 3 options if you want an education loan. NBFC/Private Banks / Public sector banks.

The process of obtaining financial subest student loan banks

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pport through the different credit schemes available in India for financing higher education varies based on which type of loan you take. Just so you know, you can approach a bank or NBFC offering education loan - a loan wherein the purpose is defined and the money borrowed can only be used for financing higher education and the related hostel expenses. In addition, people can also go for personal loan available for financing higher education. It would make no difference at all!

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The first thing to consider would be your Eligibility & Documents required to get a loan

· The course you are studying should be full time and a graduate or post graduate course in medicine, technology, engineering, management, architecture, pure and applied sciences, mathematics, statistics etc.

· You are a citizen of India and pursuing this course in India or abroad.

· You must have obtained a specified amount of marks. You should have consistently high academic records (Usually they ask for 70% and above but not compulsory if they think you have the repaying capacity).

· You must be doing your course from a recognized institution & you must already be in possession of the letter of admission.

· Your parent or co-applicant should have enough income or there should be sufficient family assets (house/plots/farmlands/buildings etc.).

· In general, you can get up to Rs. 4 lakhs of educational loan without any collateral.

· Under education loan scheme, you can get a maximum of Rs 15 lakhs for studies in India and Rs. 25 lakhs for studies abroad.

· When you take education loan up to Rs. 4 lakhs, only the student and the parent have to sign the document and no collateral are necessary. (However, if your loan amount is between Rs. 4 lakhs and Rs. 7.5 lakhs, you will have to provide third party guarantee to the bank. If the loan is above Rs. 7.5 lakhs, you will have to furnish the bank with collateral documents. )

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Documents required

· Documents for KYC process

· Bank Statement of the last six months

· Guarantor Form (Optional)

· Admission letter along with fee structure

· 10th and 12th Mark sheets or Degree courses or the qualifying examination

Due to high NPAs (Non-performing assets) of the loans approved for higher education in India, most lenders (banks and NBFCs) are extremely cautious in offering education loans for higher studies in India. If your college is approved by AICTE or equivalent agency, then getting your loan sanctioned is relatively easy. If you have an admission letter from any of the premium institutes or institutes of national importance, lenders will readily offer you an education loan at best rates available.

Note: It is much easier to get an education loan for professional courses such as engineering, medical, business and finance programs. It is easier to determine your job prospects for professional courses than for humanities and art.

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Important Do’s and Don’ts for Education Loans

An educational loan is a long-term financial commitment, certain things are crucial & you need to remember them. They are:

· Do thorough research before applying for an educational loan.

· Compare loan schemes of different lenders on portals like Amino: Compare & Apply for Best Personal loans & Business loan In India 2019

· See if your requirements match with the requirements of the bank or NBFC.

· Read all documents carefully, never assume anything.

· Try to understand all the terms & conditions properly.

· Make sure you submit all the relevant documents.

· Do not submit any false information or indulge in foul play in an attempt to fast-track your case.

Best education loan in India | Best Sudent Loan Apps in India | Best Student Loan Banks | Best Education Loan for Study Abroad

Best Education Loan for Study Abroad

Repayment of education loans

Repayment of an education loan is different. Most of the time, payment can be postponed on the principal and the interest until the student is out of school, college or university. It’s recommended to keep paying down the interest throughout the loan period so that interest is not compounded – but this is a question of means. Also, note that there is an income tax deduction available for interest paid on educational loans. Also, read save taxes on your education loan in afoos’s blog section.

Repayment typically begins anywhere from six to twelve months after you leave the institution. The student may have many options for extending the repayment period, while an extension of the loan term will likely reduce the monthly payment, but it will also increase the amount of total interest paid on the principle balance during the life of the loan. If you want to prepay the loan then try to ensure that there should not be any prepayment charges on your loan. This means if you repay the loan ahead of schedule, thereby saving on interest payment, you will not be penalized with a prepayment fee as this is a great way to reduce the interest costs.

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Conclusion

My advice to you would be – do not worry if you are not eligible for an education loan. You can explore personal loans or loans against property or shares to fund your education. The drawback is that unlike education loans, EMIs for these loans start from the first month. Also, these loans are only given to people with a stable source of income, good credit history and adequate documentation.

Best education loan in India | Best Sudent Loan Apps in India | Best Student Loan Banks | Best Education Loan for Study Abroad.