Education Loan – It is everyone’s dream, that after getting the best education, he gets employed at a high post. So that his life can go smoothly. But it’s easier said than done. It is very difficult to do that. If you get a good education.
So even if it is late but you definitely get success. But if you can’t get education. So becoming a successful person in life becomes a bit difficult task. There is no difficulty in getting a simple education. But pursuing higher education becomes a bit difficult task for many middle class students.
Because to get higher education, not only your hard work but also money is needed. Many students are not able to fulfill their dreams due to lack of money. But now the Government of India has come forward to help such talented students. And running many such schemes.
Due to which students will not face any problem regarding money in getting higher education. Because there are Government of India and many such banks, which provide education loan to fulfill the dreams of the students.
Any student can achieve his education by getting an education loan. and fulfills his dreams. But getting education loan is also not such an easy task. How can we get you an education loan here today? What will you have to do for this? I am going to give full details about it. Using which you can easily get loan.
What is an Education Loan?
It is very important for us to know this before knowing about getting an education loan. What is Student Loan? Simply put, when a student takes a loan from a bank or private institution to pursue his higher education. So it is called student loan. Any student can pursue his higher education by availing student loan.
Who can get an Education Loan?
Loan After going about student loan, the second most important thing is, how can one get student loan? Any bank or private institution also thinks about loan repayment before giving loan to any person. Generally speaking, loans are provided by banks and institutions to those individuals. Individuals who have the ability to repay the loan. In some cases, someone’s guarantee is required to take an education loan. The guarantor can be anyone. Whether it can be a friend, relative or guardian of yours.
Scope of Education Loan
Education loan is provided by almost all the banks and private institutions in India. Loans are made available to the students to meet the expenses incurred in their studies. Almost all courses taught in the country and abroad are covered under the loan. You can also get loan for higher education like class 12 school education to graduation, post graduation, PhD, engineering, medical, agriculture management, computer course, CA. Also if you want to study abroad. So you can get education loan from private institute and bank for this also.
Types of education loans
Education in India is divided into four types. You can understand them this way.
Professional Graduate Education Loan
This type of loan can also be available only to those students. Those who want to do further studies after completing their graduation.
As you must have understood from the name that this type of loan is for undergraduate. This type of loan is available to any student who wants to study abroad for graduation after completing high secondary education. He can apply for this type of loan.
Career Education Loan
This type of loan is made available to such students who want to make their career by studying from any government college, institute like ITI, Engineering, Technology etc. Doing this is called education loan.
Documents required for Education Loan
While applying for the loan, you will need some of the required documents mentioned below. The required documents are as follows –
- age proof
- passport size photo
- mark sheet
- bank passbook
- ID proof
- Address proof
- Course Details
- PAN card and Aadhar card of parent and student
- Proof of parent’s income
The documents mentioned above will be required by you while taking an education loan. Apart from these documents, other documents may also be required. Because every bank and institution has its own different terms and conditions.
How To Apply Education Loan Online
Step by step application process for education loan is given below
- Step-1 – First of all you have to get the admission confirmation letter from the university.
- Step-2 – In the next step, you have to apply for educational loan in the bank.
- Step-3 – In the third step, you will have to submit all the documents related to the loan in the bank.
- bank loan application form
- Identity proof and current address
- proof of your age
- two passport size photographs
- Proof of Income Income Tax Return Documents for the last two years
- all financial supporting documents
- Bank account statement of last 6 months
- Statement of assets and liabilities
- forex permit
- Marksheet of final qualifying examination
- university offer letter
- List of Your Expected Specified Courses
- If you have scholarship letter then copy of it
- Step-4 – After bank verification, your loan application will be processed further.
- Step-5 – After the loan application is approved by the bank, the amount will be transferred to you.
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Benefits of Education Loan
There are many benefits of getting an education loan. which is the following
- The biggest thing about Student Loan is that you can get loan easily.
- Any individual student can fulfill his dream by getting an education loan.
- Earlier where the talented students could not pursue further studies due to paucity of money. Now through education loan, he can complete his studies.
- With this the loan can be availed for a long time. So there is plenty of time to return.
- This is another advantage of its connection. That you have to pay very little interest for this loan. There are many banks and institutions that provide education loans at various discounts.
Attention before applying for an Education Loan
Before taking, you should get complete information about the institution of that bank. Partners should also read their terms and conditions carefully and completely. Along with this, we will advise you that you should take a loan according to your need. If you take more loan than you need, you may have to face a lot of trouble on the repayment of the loan. Because now a days recession is going on. And the market condition is not very good. Therefore, while getting an education loan, full planning should also be done about its repayment. So that later you don’t have to face any problem.
How much interest is charged on Education Loan?
Generally, the interest rate on education loan is much lower as compared to other loans provided by the banks. Along with this, some banks also provide a lot of discount in the interest rate for girls. Therefore, while getting the loan, complete information should be obtained about the interest rate being charged by the banks on the education loan.
What is the processing fee of education loan?
Nowadays loan processing fees are collected in almost all banks. Which has to be paid only by the applicant availing the loan. But when it comes to education loan. So no processing fee is charged in case of education loan. If any bank is demanding processing fee from you, then you can also complain about it.
Is a guarantor required to take an education loan?
Usually any guarantee or security is demanded by all the banks while providing any loan. But if we talk about education loan. So there is no need of any guarantor or security in education loan up to Rs 4 lakh. But if you want to get a loan of more than this. So according to the rules of the bank, you may need security or guarantor.
How to get Education Loan?
- First you have to select the bank or institution. From where you want to get education life.
- After that you have to go to the bank to get complete information about the education loan. And then you by following all the steps mentioned by the bank. Can get loan.
So friends, in this way you can get education loan. Do let us know how you liked this post about getting an education loan. Also, if you like this information, then share it with your friends as well. And if you have any type of question then comment in below comment box. We will answer your questions soon. Thank you..
What happens if you do not repay the education loan?
This also affects the child’s CIBIL score, which may make it difficult for him to get any kind of loan. When a student starts a job after completing his studies and needs a personal loan or credit card, banks can refuse to give him a loan due to default in education loan.
In what time will I have to repay the loan back?
The time period to repay the loan varies from bank to bank. But normally the loan has to be repaid in 15 years.
Which bank is right to take education loan, government or private?
You can take a loan from any bank, either government or private, it depends on how much loan you want and at what interest rate. You can take a loan from that bank which makes the condition feel full.
Now you all know about everything related to education loan. If you want to know more about education loan then comment below I will help you a lot.