Education loan: A short introduction
Education is really important for a young person. Lack of money can create many problems for a student. Banks in India understand these problems and that’s why they are offering education loan schemes.
This loan is designed for students. The loan amount will cover all educational expenses, so the person will be able to focus on studies. The study program or college is not an issue, and you can apply for this loan even if you study abroad. The amount of the loan is usually higher in those cases. Education loan eligibility criiteria covers all students having Indian citizenship.
Some banks are even offering special offers to female students, which supports the female education in India. Education loans in India are allowing them to continue with good work.
Why will it pay out to take an education loan?
Education loan scheme is going to cover all your educational expenses. There are various charges to be paid, books, accommodation, and many other expenses. Education loan will allow you to focus on your studies without thinking of all these expenses.
When a person finds oneself in a financial dead-end, there are choices involving quitting college or working part time creating a difficult struggle for the student. However, students that decide to continue with the education and to find the required money, often make the wrong choice. They end up applying for a personal loan instead of education.
Personal loans have higher interest rates than education loan, and it can be difficult for you to repay them. The repayment is another important topic here. Personal loans have shorter tenures than education loans. This means that you will need to start the repayment even before you’ve completed your education.
On the other hand, education loan applicant can complete his or her education in peace. After the completion of this important period of your life, the repayment will begin.
Things to know before applying for the loan
The application process for education loan is very simple. All you have to do is to get the required documents and submit them with the application. You should complete a detailed research because each bank in India has its own document list.
However, every bank will ask you for two things. The first are the documents that contain information about your guardian’s or co-applicant’s annual income. The second type of document contains proof of your academic success. These documents are essential because bank employees will use them to approve your loan.
It is advised that you make a detailed list of all your expenses. This will also help in the determination of loan amoun, and you can use it to manage the money in a more efficient way.
As we have mentioned, there is no need to worry about repayment. This is the best part of the story. The repayment of education loan will begin only after you have completed your education.
Interest Rates of Education loan at Bhopal
The banks in India offer interest rates for education loan in Bhopal that ranges from 9.40% to 16.00% and not beyond that. This is for supporting students and their education.
Examples of education loan Interest Rates that you can find in Bhopal are the following ones:
- HDFC Bank: Interest rate ranges from 10.10% to 15.50%.
- Union Bank of India: Fixed interest rates from 11.50% to 12.25%
- State Bank of Indore: Interest rates is in the range of 9.25% to 10.75%
Different banks with good education loan schemes
Various banks in Bhopal are offering this loan scheme:
1. ICICI Bank:
- Interest Rate is 11%
- The maximum amount that you can take for studying in India is Rs 10 lakhs. If you study abroad you can take up to Rs 20 lakhs.
- Margin for loans over Rs 4 lakhs is 5% of the loan amount
2. IDBI Bank:
- Interest Rate ranges from 11% to 12%
- Duration of tenure can go up to 15 years
- Third party security is required for loans over Rs 4 lakhs
3. Allahabad Bank:
- Interest Rate ranges from 11.20% to 12.70%
- Loan tenure can go up to 15 years
- Margin exists for loans over Rs 4 lakh. If you study in India, it is 5%, and if you study abroad it is 15%
4. State Bank of India:
- Interest Rate goes from 9.25% to 11.20%
- The maximum amount that you can take is Rs 30 lakhs
- The longest tenure that you can get goes up to 12 years
Paisabazaar.com is another way to apply for education loan in Bhopal. This will save your time and energy because the whole process can be done in a couple of minutes. The Paisabazaar system will require you to enter some information. You will have to submit your personal details and details about your education. After that, you will get a list of loans that you can apply for.