What is an education loan?
Education is essential in the modern world. The more you know, the easier it will be for you to find a perfect place under the Sun. However, the road to education is not at all easy. Besides your effort and work, other factors are crucial for education. Money is surely one of them.
Some students are talented and eager to work, but they can’t afford a proper education. That’s why education loan schemes exist. Education loan in India is a type of loan that banks offer to students. This amount of money will cover all educational expenses.
Anyone can apply for this loan. The best thing is that students don’t have to repay this loan until they finish their academic journey. This gives them peace and safety with which they can finish their college and plan their repayments later. If a person wants to apply for the education loan, he or she will just have to submit the required documents. Bank officials will take care of the rest of the process.
Why you should consider getting an education loan?
When students find themselves in situations where they face lack of money to finish the education, they usually think of the possible two ways. The first one is education loan scheme. The second one is the personal loan. These two are not the same, and there is an enormous difference.
If you want to apply for the loan, the first thing that you should know is the interest rates. Interest rates for personal loan can be higher. It all depends on your financial situation and the bank. On the other hand, education loans have lower interest rates in most of the cases.
When you apply for an education loan, you can make a plan of all your potential costs involved. This includes things like books, accommodation, etc. With this plan, it will be a lot easier to manage the amount that bank offers you.
The most important advantage of the Bangalore education loan is the repayment principle. If you take a personal loan, be ready to pay monthly rates. However, you don’t have any obligation to repay the education loan until you finish your education. This gives you a lot of time for planning and organizing your repayments.
Features of Education loan
While applying for an education loan in Bangalore, you will have to do some research. Many banks in India are offering an education scheme, and you will need to see which one suits you the best. The thing that is common with all the banks is the principle of loan amount determination. The annual income of the student and academic success is crucial for the loan amount.
Anyone can take this loan. It doesn’t matter if you are studying in India or abroad, you have the right to apply for it. It covers all graduation, post-graduation and other courses offered by Indian universities. There is even a possibility of discount or lower rates for female students. This means that anyone can become an education loan applicant according to the education loan eligibility criteria.
Banks of Bangalore and their Interest Rates
When you decide to apply for the education loan, keep in mind one thing. The Interest Rates will always be between 9.40% and 16.00%. This is another good thing about the Bangalore education loan that you will always know the amount that you need to repay. Here are some interesting bank offers in Bangalore:
- State Bank of India: SBI offers a base rate of 9.10%. The additional rate according to the amount you want to take goes from 1.70% to 2%
- HDFC Bank: This bank is offering a minimum interest rate of 9.85% and maximum of 15.25%
- Bank of Baroda: The MCLR is 9.35%, and depending on the amount, the interest rate can be between 10.05% and 11.85%
Education loan schemes in Bangalore
There are various options for education loans in Bangalore:
1. Bank of India:
- To apply for this bank you will have to be Indian.
- The maximum amount that you can take if you are studying in India is Rs. 10 lakhs.
- If you are studying abroad, the maximum limit is Rs. 20 lakhs.
2. Federal Bank:
- You will have to bring a co-borrower with you for security reasons.
- The period of repayment can go up to 11 years.
- The amount that you can borrow is Rs. 25 lakhs.
- The maximum amount for programs in India is Rs. 10 lakhs.
- If you are studying in some other country, the maximum amount limit can go upto Rs. 20 lakhs. The student will have 7 years after finishing the program to repay the loan.
If you are interested in education loan schemes, you need to visit Paisabazaar.com. This website can help you with an easy online application procedure. The whole process is a lot faster. You can also use the website if you want to apply for some other loans in India.
The basic details are your personal details and details about your education. You can also choose the amount that you need, and a tenure period. After you’re done, the system will give you a list of options in Bangalore for you to choose from. The whole process won’t take more than 10 minutes.