Education loan: Basic details
Education loans are specially designed for students. This is a loan that they can apply for if they run short of funding or need a complete solution to support them in their dreams for a brilliant degree, certification or a professional qualification. We all know how education is an important and difficult period in one’s life. Without enough money to support it, education would be even more difficult or even impossible for some.
There are different banks in India that offer an education loan scheme. They are all supporting the education of the youth. That’s why the banks are accepting any study program in India.
The process of application is very simple. All you need to do is present the required documents. However, a person that applies must be willing to work hard through education. Education loan eligibility criteria is to be met by all students of Amritsar and India.
Benefits of education loan
The first benefit of the education loan scheme is the money that you will get. With this amount, you will be able to cover all your study expenses. This will give you a lot of time that you can use to focus on your studies. The best feature of an educational loan is in that a bank supports all your possible expenses.
People usually think of loans when they need a financial boost. However, many of them may apply for a personal loan instead of education loan. This is wrong because personal loans don’t make a difference between students and working people. When you take a personal loan, be prepared for high interest rates. You might be able to get a lower rate, but it will still be higher than education loan interest rate.
Another aspect to be aware of is the repayment process of personal loans. The tenures will be a lot shorter than tenures of education loan. This can create a difficult situation for a student. We all know how hard it is to work and educate yourself at the same time, and a personal loan might create this kind of situation.
Things to know before applying for an education loan
There are various banks that can give you an education loan in India. However, the procedures and documents required are not the same for all of them. This means that you will have to inform yourself about the policy of the chosen bank.
The repayment is organized in monthly rates. They are of equal amounts and are decided on the basis of interest rates and repayment tenure.However, the repayment starts only after you complete your education. There is even a moratorium period – a period of one year that stands between your education and repayment process. This period can be used for finding employment.
Banks in India can offer a great program for education loan applicant. They are applicable for every study group in India, and even students that go abroad can apply for them. Some of the banks are offering different discounts and lower rates to female students, which is an opportunity that must not be missed.
Amritsar interest rates for education loan
The government of India supports the students and education of the youth. The education loan interest rates in all banks of Amritsar are fixed. It always ranges from 9.40% to 16.00% and not beyond that.
Examples of Interest rates that you can find in Amritsar are the following:
- ICICI Bank: Interest rate amounts to 11% only
- Oriental Bank of Commerce: Interest Rates are in a range of 10.20% to 12.70%.
- HDFC Bank: Interest Rates are always between 10.10% and 15.50%
Banks where you can apply for education loan
Various banks are offering education loan in Amritsar:
1. Punjab National Bank:
- Interest Rate goes from 10.60% to 12.60%
- Margin is 5% for loans over Rs 4 lakhs
- Longest tenure that you can get is 15 years
2. Corporation Bank:
- Interest Rate is in a range of 12.10% and 13.10%
- The maximum loan amount for students in India is Rs 10 lakhs. For students in other countries, it is Rs 20 lakhs
- Processing fees amounts to Rs 2000 but only for students that study abroad
3. Canara Bank:
- If you take a loan amount lesser than 4 lakhs, there won’t be any interest rate.
- Margin for loan amount over 4 lakhs is 5% for students in India and 15% for students abroad.
- You can take up to Rs 10 lakh if you are studying in India. Rs 20 lakh is the maximum amount for students studying abroad
4. Central Bank of India:
- Interest rate ranges from 11.20% to 11.70%
- There is no processing fee applicable if you study in India
- If you study abroad, processing fee of Rs 500 is charged for loans up to Rs. 10 lakh
There is another way to apply for an education loan in Amritsar. Paisabazaar.com is a portal which provides an easy way of online application. It is reliable and safe, and it can save you a lot of time. When you decide to apply the system will ask you for some information. You will have to submit some details about yourself and about your education. After you do this, you will get a list of loans in Amritsar that are suitable for your needs.