A brief introduction of Education loan
Education loan is a loan that you need if you lack financial support for college. This is specially designed for students and their educational needs. With this loan, you will be able to cover the entire cost of your education. Without any worries about finance, you can focus on what matters the most – your studies.
Every Indian citizen deciding to study either in India or abroad fits in the education loan eligibility criteria. It doesn’t matter if you are pursuing a graduate, post-graduate program or you are pursuing some other certified course, this loan is designed to cover every requirement. Banks also provide loans for studies abroad i.e. in a foreign country although amounts may be limited due to statuary requirements. Some of them are also offering discounts to female students.
The whole application process of getting the education loan in India is very easy. All you need to do is to gather the required documents and submit them with the application. Once these documents are verified, you will get the approval. The banks will approve the loan for all students who are ready to work hard to educate themselves.
Why do you need to apply for an education loan?
Education loans are probably the best way to gather the required funds. It is superior to other type of loans because it is tailor made for students.
The first advantage is the interest rate. In most banks of India, you can find really low education loan interest rate. The banks in India are mandated to lend money for the education sector as it is an area of priority lending and it is further enhanced in case of vocational, technical and medical education.
The repayment for the education loan starts only after the course is over, degree is awarded and an additional grace period gets over. Normally, most banks offer a period of 6 months or the time till a student starts working, whichever happens earlier.
However the interest rate starts accruing from the day you borrow your first tranche of the loan.
Education loans are much better than personal loans. A personal loan has higher interest rate and a shorter tenure. This means that you will have to start with the repayment the next month after borrowing from the bank. The same goes for a loan against property. Many people in Agra will choose this loan if they have some financial problems. However, this loan is a risky one, and it is not a good idea to use it for educational purpose.
Basic things to know about education loan
Education loan in Agra will cover all your expenses. We all know that education can be a difficult period in one’s life. That will no longer remain a problem if you take an education loan in Agra. With this loan, you will be able to cover all your expenses. Books, instruments, accommodation etc, your expenses for all these would be covered.
The amount that you can get is not fixed. This means that it will always vary. The amount of money that you will get varies. The most important factors that will matter includes your academic performance and in case of under graduate students, the annual income of your guardian. The bank will consider these factors to decide the loan amount that you can get.
Different banks in India will offer you different education loan schemes. Each bank has a different tenure and different interest rate. That’s why you must do a detailed research to see which one is the right offer for you.
Interest Rates of education loans in Agra
The government of India offers support to students. That’s why the interest rate for education loan schemes in all Agra banks usually ranges from 9.40% to 16.00% while the MCLR is usually between 9.25% and 9.75%.
Some examples of interest rates that you can find in Agra banks are:
- Union Bank of India: Interest Rate ranges from 11.05% to 12.55%.
- Dena Bank: Interest Rate is 11%
- Oriental Bank of Commerce: Interest Rate is always between 9.40 % and 9.90%
You can get an education loan scheme in various banks of Agra:
1. State Bank of India:
- The loan amount that you can get goes up to Rs 30 lakhs
- Repayment period goes up to 12 years
- Interest rate ranges from 10.80% to 11.10%
2. Bank of Baroda:
- The biggest amount that you can take is Rs 20 lakh
- Interest Rate ranges from 9.60% to 10.10%
- Margin is 15% of the loan amount
3. Central Bank of India:
- Maximum loan that you can get is Rs. 10 lakh
- Interest Rate moves within the range of 10.85% to 11.35%
- The margin can range from 5% to 15% of the loan amount
4. Allahabad Bank:
- Interest rate ranges from 11.05% to 11.65%
- Margin can be in the range of 5% to 15% of the loan amount
- The maximum loan amount can go up to Rs 20 lakhs, or Rs 50 lakhs if you study abroad
Those were just some of the banks that can provide you with an education loan in Agra. You will have to do some research in order to find the best offer. There is also an online portal to help you with this. Paisabazaar.com is one of the safest and fastest ways of application.
All you have to do is enter your personal details and details of your education. The system of Paisabazaar.com will provide you with best loan offers in Agra. You are free to check them and apply for the most suitable one.