An explanation of education loan
Education loan in India is the best solution for a student’s financial problems. This loan can offer you a good amount of money that can cover all your education expenses. The best thing is that security options for the loan are flexible and there are no repayment obligations until the end of the education.
The banks in India are offering different education loan schemes. However, they are all designed to help the students for their educational needs. If you want to apply, you will have to be a citizen of India. There are no rules concerning college or study program, so anyone can get this loan. You can even get it if you study abroad.
The Interest Rates are affordable and the repayment principle is the best thing about education loan scheme. The repayment tenures are usually very long, and the user is not obliged to start the repayment before he or she finishes the education.
When and why to apply for this loan?
Any student in India can be an education loan applicant. This means that you can make a list of all your expenses and use this money to deal with them. The process of getting this loan is also very simple. All you have to do is gather the documents and fill in the application. You can do this online or by visiting the bank.
As we’ve already mentioned, you don’t have to worry about interest rates. They depend on the bank policy, but they are all very low and affordable to students. That’s why education loan eligibility is applicable for every student in India. However, there are people who apply for personal loans instead of education one.
A personal loan is not the best thing for this situation. Students cannot afford high interest rates, and most of the banks have extremely high rates for personal loans. Another problem here is the repayment. Personal loans usually have shorter tenures than education ones.
Additional details of education loan
The first thing that you should know when you decide to apply for the loan is the documentation process. Many banks in India are offering this loan. They all require different documents. When you choose a bank where you want to apply, visit their website and check the documents that you’ll need.
Required documents will show your annual income and your academic success. The bank officials will use this information to determine the amount of your loan. It would be wise if you could make a list of all your expenses. This will help you to manage the loan money, and it will also facilitate determination of the amount.
After you get the loan, you don’t need to worry about your educational expenses. There is no need to worry about repayment because you have no obligation to return the loan before you finish your studies.
Interest Rates for education loan schemes in Allahabad
Education loan Interest Rate is fixed and ranges from 9.40% to 16.00%. This is to enable every citizen of India to find a loan that suits him or her. Some examples of Interest Rates that you can find in banks of Allahabad are:
- Dena Bank: Interest rate is 11.25%
- State Bank of India: Interest rates range from 9.70% to 13.45%
- Allahabad Bank: Interest Rates between 9.45% and 11.45%
Where to apply for education loan?
If you decide to opt for an education loan scheme, you will have to do some research by yourself. There are a good number of banks in Allahabad that can provide you with this scheme. Some of them are:
1. Bank of Baroda:
- Interest rate goes from 9.90% to 12.15%
- Margin is 15% of the loan amount
- Longest tenure period that you can take is 15 years
2. Indian Bank:
- Floating interest rate is 12%
- Loan margin moves from 5% to 15%
- Maximum amount for students in India is Rs 15 lakhs and for studies abroad Rs 25 lakhs.
3. Federal Bank:
- Interest rate for the scheme ranges from 10.72% to 17.32%
- Margin exists only for loans over Rs. 4 lakhs 5% for students in India and 15% for students abroad.
- Tenure period goes up to seven years
4. Bank of Maharashtra:
- Interest rate goes from 10.95% to 12.20%
- Margin is 5% for loans above Rs 4 lakhs
- The maximum loan amount that you can get is Rs. 10 lakhs or Rs 20 lakhs if you study abroad
Education loan in allahabad is a great option if you need to finance your education. These are only some of the examples and there are many other banks that can provide you with this loan. However, you can also visit Paisabazaar.com and apply there. This website gives you a safe and reliable option for applying online.
Your job is to submit some information about yourself and your education. This lasts for a couple of minutes only. After that, Paisabazaar.com will offer a range of loan offers in Allahabad.