Education loan: A brief introduction
Education loans in India can solve problems of many students. These loans are specially designed for their needs, and are therefore the right choice to support students financially. Money has a great role in one’s education. Many expenses need to be covered, such as accommodation, books or different instruments. Sometimes a person might not be able to cover all these expenses, and that’s what education loans are for. They offer a good amount of money that will cover all expenses of the education.
Benefits of education loan
Education loan scheme is the best solution for students. There is no other loan that can cover all expenses and offer affordable interest rates. Education loan interest rates are the first thing to speak of when you want to apply for a loan. The good thing here is that interest rates are very low, and students are able to afford them. The banks of India support the education of the youth, and they are therefore offering a method to support the education of youth.
When a student gets into a financial crisis and is unable to support his/her education, he thinks of the two options that he has. The first one is to quit the studies. That is always a wrong choice. The second one includes gathering the required money, and one solution for this option is an educational loan. A person can choose between educational loan and a personal loan. Don’t think that these two are similar, because there is a great difference.
First of all, interest rates of personal loans are much higher than those for education loan. The second difference lies in the repayment principle. If you take a personal loan, be prepared for monthly repayment immediately after you receive the amount. On the other hand, if you take educational loan, the repayment will begin only after you have finished your education.
Education loan details that you need to keep in mind
There are various banks of India which offer different education loan schemes. You will have to do a little research before you apply for one. If you log on to Paisabazaar, you could look at all the banks and the possible options and do a comparison of various factors i.e. interest rates, documentation required, loan duration etc.
The best thing to do is to make a plan of all your educational expenses and then compare the result with the bank offers. This way you will be able to determine the exact amount of money that you’ll need to complete your education.
The good thing is that education loan eligibility covers whole of India. This means that every student can become an education loan applicant. To apply for the loan you will need various documents. Each bank has a list on their website and we recommend you to go ahead and look at the list. However, the most important ones are the proof of your academic success and the proof of your annual income. The loan amount that you will get depends on these two.
Don’t worry about your program or college. Banks in India will support any study program of India and abroad. Another interesting thing to keep in mind is that a female student can get various discounts and lower rates because banks wish to encourage the education of females.
Hyderabad education loan Interest Rates
The government of India has defined an interest rate range in order to support the students – from 9.40% to 16.00%. This is done so the students can focus on their education, not on loans. Some good education loan offers in Hyderabad are:
- State Bank of India: Interest Rate is between 9.40% and 11.10%
- HDFC: Interest Rates range from 9.50% to 15.25%
- Allahabad Bank: Interest Rate is between 10.05% and 11.60%
Hyderabad banks and their education loan schemes
Different banks can provide you with education loan in Hyderabad:
1. State Bank of Hyderabad:
- Interest Rate ranges from 10.80% to 11.10%
- Rs 10 lakh is the maximum amount for students in India, and Rs 20 lakh for students abroad
Margin of 5% for loan amount greater than Rs 4 lakh
2. Bank of India:
- Interest Rate ranges from 11.05% to 12.35%
- The margin amounts to 5%
Rs 10 lakhs is the maximum amount that you can take
3. AXIS Bank:
- Interest Rate is 15.50%
- 5% margin for loans greater than Rs 4 lakhs
Parent or guardian needed as a security for the loan
4. IDBI Bank:
- Minimum interest rate is 9.45% and maximum is12.35%
- 15 years is the maximum possible loan duration
Loans greater than Rs 4 lakhs require third party security
You can check with these banks when you decide to apply for an education loan in Hyderabad. However, if you have a busy schedule and you can’t find time to apply, you can apply online. Paisabazaar.com is there to help you with this. You have the obligation to submit the necessary information and that’s it.
The Paisabazaar system will ask you to submit a few personal details, educational details, and information about your income. In less than 10 minutes, you will get a list of suitable options for education loans in Hyderabad.