A short description of education loan
Education loan is a loan scheme which is made to cover the education costs. It is available for students of India and their parents, too. Education loan in India will cover everything ranging from books to college tuition and accommodation. It is one of the best options for students who have no funds for financing their education.
The only criterion is that an applicant should be a citizen of India with a strong desire for learning. This loan will cover both graduate and post-graduate programs, and most of the banks will cover different verified courses. If you study abroad you can also get this loan, and the amount of the loan will be bigger.
Many banks in India are offering schemes that support female education. These schemes include different benefits and discounts for female students. The best thing is that education loan eligibility can cover any college. This means that all students of India are potential education loan applicants.
Why is education loan a good thing for your financial situation?
People usually think of personal loans when they are going through a financial crunch. A personal loan is not the best option for education. Unlike education loans in Guwahati, personal one has high Interest Rates, and the repayment must be done in EMIs. This can create even additional problems to the young student. There is no need of searching other options when education loans Interest Rates are affordable. With the loan comes the responsibility for the money and repayment, which will surely be useful later on in life.
The users of education loans can say that this loan has improved their credit history. If you want to take some other loan after the education one, there is a good chance you will get lower Interest Rates because of used education loan.
Things to know before applying for this loan scheme
The first advantage of the loan is lower Interest Rates. While other loans can have very high rates, Guwahati education loan is designed for students, so it is natural that rates will be low.
The repayment method is also a great advantage of education loan. There is a moratorium period which allows a student to organize his or her finances. This period is of great use because you can find a way to repay the loan.
The application process is not complicated at all. You will have to submit some documents, and you can get a detailed list on the website of your bank. The needed documents are different for every bank, but they all refer to two things:
- Your annual income
- Your education success
Your parents can be your co-borrowers which would increase the chance of getting the loan. Their good credit score can give a good impression.
Interest Rates that you can find in Guwahati banks
Education loan schemes in Guwahati have various Interest Rates. This depends on the bank policy. You will have to check the loan program your bank to see if it fits your needs. If not, there are many other banks that can help you to get a loan.
Some examples of Interest Rates for education loan in Guwahati are:
- Dena Bank: Interest Rate ranges from 9.45% to 11.00%
- Canara Bank: margin is set only for loan above Rs.4 lakh and it amounts 5% for Indian students and 15% for students abroad
- State Bank of India: Lowest Interest Rate ranges from 9.40% to 11.10%
Banks of Guwahati and their education loan schemes
Various banks can provide you with education loan scheme in Guwahati:
1. Oriental Bank of Commerce:
- The biggest loan amount is Rs.10 lakh for students in India, and Rs.20 lakh for students abroad
- Interest Rate moves within a range from 10.20% to 12.70%
- Margin is 5% for loans over Rs.4 lakh
2. Punjab and Sind Bank:
- Interest Rate goes from 11.25% to 13%
- The margin is 5% for loans over Rs 4 lakh
- There is no pre-payment penalty
3. Central Bank of India:
- Maximum loan is Rs.10 lakh for students in India, and Rs.20 lakh for students abroad
- Interest Rate goes from 10.85% to 11.35%
- There are no processing fees
4. Vijaya Bank:
- Interest Rate ranges from 9.65% to 12.20%
- 5% margin for loans above Rs.4 lakh
- 15% margin for abroad students
These are only some of the banks that you can visit to apply for education loans in Guwahati. There is a vast choice of other institutions that can help you to get your loan. Choose wisely.
You can also apply for loan online through Paisabazaar.com. Your details are completely safe on this website. You just need to submit your personal details, education details and information about your income. The whole application process lasts only for a few minutes. Paisabazaar.com will show you loans that are suitable according to your needs.