An introduction to education loans
We all know education is very important in everyone’s life. Education loans help you in achieving your future goals in life. These loans provide funding for the education of those people who cannot afford the education related expenses.
Education loan in India is the amount of money that is given to the student to use it for his or her education purposes which include tuition fees, hostel fees, books, etc. Many banks offer these loans at a lower Interest Rate. The best thing is that the student is not in obligation to pay back the loans until the end of the education.
These loans are universally available. Anyone with a will to study hard can apply for them. The loan amount will be determined by the annual income of the education loan applicant in case of working professionals or co-borrowers and the accomplishments in the course that he/she is pursuing.
How can education loan scheme help you with your financial situation
When you need a loan to complete your studies, you have two choices. The first one includes personal loan and the other is the education loan. The education loan has some advantages over the personal loan.
The main difference between education and personal loan is the repaying principle. When you take a personal loan, you will have to pay interest every month. On the other hand, a Delhi education loan allows you to peacefully finish with education and then start the repayment procedure. Since the education is expensive, this repayment principle means a lot.
As we have already mentioned, there are various costs during the education. The education loan allows you to make a detailed plan that will include all your costs. It is much easier to manage the education loan than the personal one.
Another important thing to mention here is the Interest Rate. If you pick a private loan keep in mind that you will get bigger rates. That’s why a Delhi education loan is the right choice for a student.
Things to keep in mind before applying for education loan
If you think to apply for an education loan scheme, you should know a few things.
Education loans will cover all type of courses, both in India and abroad. You will be able to cover your graduation, post-graduation and other certificate courses with this loan.
Loan amount varies, and it depends on the accomplishments of the college and the annual income of the student’s co borrower. There is also a possibility that a female student gets a discount or a lower Interest Rate. This is for supporting the female education in India.
If you want to apply for the loan, you will have to do some research. Find the most suitable bank and the most suitable loan option. Look for the documents that you need to deliver. These documents usually refer to:
- Your income
- Your education details
- Personal details
Delhi Interest Rates for education loan schemes
As we have already mentioned, the amount of loan is made according to the student’s income (in case working) and success at college. The tenure of the education loan can go up to 10 years, and most of the students are repaying the loan after they are done with college. The examples of education loan Interest Rates of banks in Delhi are:
- HDFC Bank: Interest Rate ranges from 9.50% to 15:25%
- Punjab National Bank: Interest Rate moves between 9.40% and 11.90%
- Allahabad Bank: Interest Rates go from 11.05% to 13.55%
Banks in Delhi that can provide you with an education loan scheme
There are various institutions in Delhi that can provide you with good education loan scheme.
1. AXIS Bank:
- Interest Rate goes up to 17.25%
- You need to pay Rs.1000 for processing fees
- For loans over Rs.4 lakh, there is a margin of 5%
2. Kotak Bank:
- Rs.10 lakh is the biggest amount for students in India
- Rs.20 lakh is the biggest amount for students abroad
- Interest Rate ranges from 11.5% to 24%
3. Bank of Baroda:
- Interest Rate goes from 9.40% to 11.90%
- The longest possible duration of tenure period is 15 years
- Margin amounts 15%
4. Central Bank of India:
- Interest Rate is always between 11.2% and 11.7%
- If you are studying in India, you don’t need to pay procession fees
- If you study abroad, fees amount Rs 500
If you decide to apply for education loan in Delhi, you will surely need to visit Paisabazaar.com. This website can give you a simple application for any loan in India. You will need to enter some of your details – the same ones that you would give with education loan documents. Paisabazaar will create you an education loan listing. You will be able to pick from a variety of schemes to be found in Delhi.