Basic details about education loan schemes
Education loan is a type of loan that is made especially for students. With this loan, every student will be able to cover his or her expenses. This will create additional time and space for the person to focus on what is most important.
Banks in India have created education loan schemes. Each scheme is a bit different, but there are some elements that are common in all of them. Each bank in India will support students who apply for an education loan. You can even apply if you are studying abroad. However, you will have to be an Indian citizen to apply.
The application process is very simple. Banks have different document demands, and you can check everything on the website of the bank you choose. Each bank in India will consider the application, and if the student eligibility is according to the bank’s requirement, then the said student would get the loan sanctioned.
Reasons to apply for an education loan
As you might already know, education loan scheme will cover all your expenses. This is the amount of money you will use to pay for accommodation. You will buy books and pay all those college charges. It is the best solution if you need financial support during or at the beginning of your selected program.
At the start of a tough year in college, normally students consider various financial options, parents, guardians, sponsors i.e. relatives and friends however very few really consider an education loan. Many students also get a personal loan in the name of their parents or guardians to help them through their program of study. However, the choice of a personal loan or loan against property is never right for your higher studies or a graduate program.
Education loans in India are a better solution to your educational requirements.
Both personal loan and loan against property are not designed for students. The interest rates can be very high, making them totally not suitable for students. The repayment principle is also more complicated than the repayment of education loan. The repayment for personal loan and loan against property will begin sooner than education loan. This often will lead to a difficult situation for a student because it is difficult to maintain the pace of study and work to repay the loan.
In some cases, it is also better to take an education loan even if you have the money for education. The loan can provide you option of repayment in monthly rates. This is a lot better than paying all at once, that is how many colleges require the money.
Things to know before applying for the loan
Education loan is the right loan for students. The repayment of this loan can be delayed until the student is done with his/her education. This is a great advantage of this loan. Education loan Interest rates are also very low, which makes the repayment much easier. Education loan eligibility criteria covers whole India, which means that every student can be an education loan applicant.
Various banks in India are offering this loan. The documents required differ from bank to bank, but some of them are common. The essential documents contain information about the annual income of the applicant and proof of educational success.
These documents will be of great use for the bank officials. They will use them to calculate the right loan amount to give it to the applicant. It is recommended that you make a detailed list of all your expenses. This will be of great use to the bank employees, and it will also help you to keep a track of all your expenses .
Interest Rates for education loans in Bhubaneshwar
The Interest Rate for this loan is always between 9.25% and 16.00%. This is for supporting students and their education.
Some interest rates that you can find for education loans in Bhubaneshwar are :
- ICICI Bank: Interest Rate amounts to 11% only
- Bank of Baroda: Interest rate ranges from 9.90% to 12.15%
- Punjab National Bank: Interest rates between 12.00% and 13.00%
Bhubaneshwar banks and their education loan offers
Many banks can provide you with an education loan in Bhubaneshwar:
1. Bank of India:
- Maximum loan amount that you can take is Rs 20 lakhs
- Interest rate ranges from 10.20% to 12.70%
- The longest repayment tenure is 15 years
2. Kotak Bank:
- The maximum amount is Rs 10 lakhs if the student is studying in India. For students abroad, the maximum amount is Rs 20 lakhs
- Interest Rate goes from 11.50% to 24%
- You need to pay processing charges at the rate of 2%
3. Canara Bank:
- Maximum amount that you can take is Rs. 10 lakhs
- There is no margin for loans smaller than Rs. 4 lakh
- The margin is 5% for loan amount greater than Rs. 4 lakhs
- Third party security is required
4. Andhra Bank:
- Interest Rate ranges from 11.75% to 13%
- Margin exists only for loans over Rs 4 lakhs and it amounts to 5%
- The maximum loan amount that you can get is Rs. 2 lakhs
These are only a few banks that can provide you with the education loan schemes according to your preferences. You will have to do a little research and see which one is the best for you. You can also apply online for education loan in Bhubaneshwar. Paisabazaar.com is the website that can help you with application.
It is a completely safe method, and everything can be done within a couple of minutes. You can apply for the loan without visiting the bank. All you need to do is to submit personal details and details about your education. When everything is done, the portal will give you a list of options for education loans in Bhubaneshwar.