Education loan: Basic details
Deciding on which loan should you take for your Education? Contacting a nearby bank can be a good option. There are chances that you find an education loan option that can fund your education easily without causing any financial burden. Both parents and students can apply for this loan. It has many advantages, and it is one of the best solutions to achieve a financial aid for the degree you wish to have.
Everybody knows that education is both difficult and expensive. This phase is an important period in one’s life but if there is no financial support, many problems may cause trouble. A suitable education loan scheme can solve these problems.
The application process is very easy, and you must be a citizen of India to apply. The college that you are enrolled in or the program does not really matter because this loan covers every college of India. You can even study abroad and apply for the loan.
Some banks are offering special loan schemes for supporting female education. These schemes include various discounts and benefits that female students can use to their advantage.
Reasons to apply for this loan
Both students and parents can apply for this loan. However, it is better if the student applies for it. When the borrower receives the loan amount, it offers a different kind of confidence. With the loan amount being offered, he or she will become independent and will also have a sense of responsibility. This is also good for the family budget as the parents will not have to bear any additional burden. The best thing is that education loan eligibility covers every college of India. This provides a chance to all the students to become an education loan applicant.
People usually take loans in order to sort their financial troubles. However, they usually end up taking a personal loan. This is not the preferable option for the education problems. A personal loan has high interest rates. A student won’t be able to bear these costs, and even bigger problems may appear. Repayment is also a problem because the student won’t be able to maintain the monthly repayment pace.
You should consider education loans in India even if you have the money to cover your education. The policy of every college requires you to pay the amount at once. This may be bad for your budget. While having an education loan will give you a chance to pay for your education installments, which is better for your financial situation.
Additional information about education loan
Education loan in Gwalior is designed for students, and that’s why interest rates are very low. Every bank in India respects this rule. The best thing about this loan is the repayment method. There is a moratorium period that will give you time to gather the money. This period commences after you’re done with your education.
To apply you will have to submit some documents. Each bank has its own list of documents, so you must check it on the website of your bank. However, the most important documents are same for every bank. These documents contain information about your annual income and your academic success.
Interest Rate for education loans in Gwalior
The education loan interest rate ranges from 9.40% to 18.00%. Every bank in India follows this range. Some examples of education loans that you can find in Gwalior are:
- Bank of Maharashtra: Interest rate ranges from 10.85% to 12.10%
- Bank of India: Interest rates range from 11.05% to 12.35%
- Axis Bank: Interest rate ranges from 14.75% to 17.25%
Banks in Gwalior where you can apply for education loan
Various banks can provide you with an education loan in Gwalior:
1. Corporation Bank:
- Processing fee of Rs 2000 for students who will study abroad
- The maximum amount is Rs 10 lakhs for domestic students and Rs 20 lakhs for students abroad.
- Interest rate goes from 11% to 11.85%
2. Andhra Bank:
- Minimum interest rate is 11% and maximum is 11.45%
- Margin of 5% for loan amounts greater than Rs 4 lakhs.
- Rs 2 lakhs is the maximum possible loan amount.
3. ICICI Bank:
- Interest Rate is only 11%
- Loans over Rs 4 lakhs require a 5% margin
- Third party security is also required for these loans
4. State Bank of Hyderabad:
- Interest rate goes from 10.75% to12.75%
- The maximum loan amount is Rs 10 lakhs for students in India, and Rs 20 lakhs for students abroad.
- There is a 5% margin for loans over Rs 4 lakhs
Another way to apply for education loans in Gwalior is by visiting Paisabazaar.com. This is a secured online portal. If you have a busy schedule and you can’t make it to the bank, this website is the right thing for you. The application process is simple and fast. It won’t take more than 10 minutes of your time. You only have to submit the following information:
- Personal details
- Income and financial state details
- Education details
Paisabazaar.com will then display a list of possible education loans in Gwalior. You are free to check them and pick one to apply for.