Education loans: A short explanation
It is not easy for students to maintain the pace for studying, have their own social life and create a financial support infrastructure.
Usually, parents offer this support, but in many cases, even they are unable to do it. The toughest scenario for a student is to study and work at the same time. However, this can be avoided with an education loan scheme.
Education loan is a loan specially designed for students. This loan supports their expenses such as books and accommodation. Any citizen of India who has secured an admission to a higher institution of learning can apply for the loan. The application process is very simple, and you will only need to bring a proof of annual income and proof of your academic success at school/college.
Education loan in India will support any study program, both under graduate, and post-graduate. The eligibility criterion of education loan covers the entire country. You can even apply if you are studying abroad. A key advantage to educational loan is its repayment period. A borrower does not have to repay until he or she finishes the said study program. This means that any student can become an education loan applicant.
The advantages of this loan scheme
The choices a student considers while deciding his or her funding options prior to beginning of the program includes personal loans, loans from parents and loan against property.
If a student chooses to take a personal loan instead of an education loan, the rules are different. The personal loan doesn’t consider any difference between students and working people. This means that after the loan is sanctioned, a student must begin repaying the amount in equal monthly installments. The situation with an education loan is completely different, and the repayment procedure begins after the education is complete.
Interest rates are also an issue here. If you apply for a personal loan, be prepared for high interest rates. On the other hand, education loan interest rates are usually low because Indian banks understand and support the students. With an education loan scheme, you will be able to cover all your education related costs. This will allow you to manage the loan money in the right way.
Additional details of education loan
If you are a student applying for an educational loan in India, you will have many benefits. The terms that banks offer with this loan are very good. We’ve already mentioned that this loan supports any study program in India or abroad. This means that education loan eligibility criterion covers the entire country and every student can become an education loan applicant.
It also offers you low interest rates and an option to repay the loan after course completion. Many banks are offering different discounts and low interest rates to female students. This is because Indian banks wish to encourage female education.
However, various banks in India offer this loan scheme. Hence, you will have to do a detailed search to see which one suits you the best.
Interest Rates of Chennai banks
As we have already mentioned, the amount of loan is decided according to the income and student’s academic success. The tenure of the education loan in Chennai can go up to 10 years, and most of the students prefer repaying the loan after they are done with the college. The examples of education loan Interest rates in Chennai are:
- Indian Bank: Interest Rate is 12.25%.
- IDBI Bank: Interest rate ranges from 9.75% to 13.25%
Indian Overseas Bank: Interest rate is always between 11.45% and 12.05%
Banks of Chennai where you can apply
Various banks can offer you good education loan schemes in Chennai.
1. Canara Bank:
- Maximum amount you can take up to is Rs. 10 lakhs
- For amounts lesser than Rs. 4 Lakh, there is no margin
There is a margin of 5% for amounts more than Rs. 4 lakhs.
2. Bank of Baroda:
- Interest Rate goes from 9.50% to 11.85%
- No margin and no security needed
Maximum amount of the loan is Rs 10 lakhs
3. State Bank of Hyderabad:
- Interest Rate is in the range of 10.80% and 11.10%
- Rs 10 lakhs is the maximum loan amount for studying in India
- For studying abroad, maximum loan amount is Rs 20 lakhs
No margin for loans up to Rs 4 lakhs.
4.Union Bank of India:
- Interest rate ranges from 11.05% to 12.55%
- No security required for loans under Rs 4 lakhs.
The amount that you can take goes up to Rs. 10 lakhs
If you decide to apply for an education loan in Chennai, you can check with these banks. However, you must search and look for other offers. You can also visit Paisabazaar.com in order to apply online.
This procedure is safe and fast. You will finish everything in a couple of minutes. The website requires you to submit your personal details and information about your education. When you do this, the website will show you a list of loan options available according to your needs.