Education loan: a short introduction
Getting selected and taking admission in your dream college is not just enough but have you selected the right funding option? There are many things that can go wrong, but probably some of the worst scenarios include the lack of funds. That’s why education loans are providing the needed help.
Banks in India have organized different loan schemes that can cover all student costs. Education loan eligibility covers every college in India, and any student can be education loan applicant. It doesn’t matter what you study because this loan covers all colleges and all study programs. Students studying abroad can also apply for this loan. Some of the banks in India are also offering special schemes for female students because supporting women education in India is very important.
The application process to get education loan in Faridabad is an easy one, and the most important part is to submit the needed documents. When you apply, the bank will check documentation a sanction letter will be given.
Reasons to take this loan
It’s simple – an education loan can help you to study in peace. The biggest advantage of education loan lies in Interest Rates and repayment method. Education loans Interest Rates are very low, which suits the student’s wallet. Repayment starts only after the education is over. This is a great advantage because it creates more room for the student to concentrate on college.
There is even a moratorium period – period that lies between graduation and beginning of the repayment. It usually lasts for a year. This year can be used for gathering the money for repayment. You can also find a job during the moratorium period.
However, a personal loan is still the first choice for some people. Personal loans are not the best option for educational purposes. The Interest Rates can be very high, and repayment is done in monthly rates. Some people also choose loans against property. The situation here is the same, and this can create only additional problems to the student. That’s why you should consider applying for an education loan in Faridabad.
Different features of education loan scheme
As we have mentioned, there is a great variety of education loan schemes in India. Each bank has its own scheme and they all differ in some aspects. You will need to submit your application and some documents with it. The needed documents can be found on the website of the bank, or you can visit the nearest branch and ask the employees.
However, some documents are common for all banks. These documents are referring to the details about your education and incomes. This information is essential for the loan amount. The bank will use it to determine your loan amount eligibility. Some of them are also demanding a detailed list of all your expenses, which is also used with the amount determination.
Interest Rates for this loan in banks of Faridabad
The government of India has created Interest Rates that are always between 12.00% and 16.00%. The base rate doesn’t change either. This is because they understand that students and their education need support.
If you want to apply for education loan in Faridabad, these banks can give you good Interest Rates:
- ICICI Bank: Interest Rate is 11%
- Allahabad Bank: Interest Rate ranges from 11.05% to 13.55%.
- Punjab National Bank ranges from 9.40% to 11.90%
Banks that can provide you with an education loan scheme
Education loan scheme in Faridabad is available in any bank. You just have to check them and see which one suits your needs. Here are some offers that can help you:
1. Bank of Baroda:
- Interest Rate ranges from 9.85% to 12.60%
- The maximum loan amount that you can take is Rs.4 lakh
- No margin, no processing fee, and no security is required
2. Central Bank of India:
- Rs.10 lakh is the maximum amount that you can apply for
- Interest Rate ranges from 10.85% to 11.35%
- The margin is between 5% and 15%, depending on the loan
3. Vijaya Bank:
- Maximum amount is Rs.10 lakh for students in India and Rs.20 lakh for students abroad
- Interest Rate ranges from 9.65% to 12.20%
- Margin exists for loans over Rs.4 lakh – 5% for students in India and 15% for students abroad
4. Bank of Maharashtra:
- Interest Rate ranges from 10.95% to 12.20%
- Margin exist for loans over Rs 4 lakh and it amounts 5%
- The maximum loan amount for students in India is Rs.10 lakh
- For students abroad, this loan can go up to Rs.20 lakh
There is another way to apply for this loan. If you can’t visit to the bank, you can apply from your home. Paisabazaar.com is a website that offers a safe and fast application procedure. Your task is to submit your education and personal details. The website will do the rest.
In just a couple of minutes, you will have a list of education loans in Faridabad. Read every offer and think well before choosing one. You can also use Paisabazaar.com to apply for other possible loans in India.