Education loan: Basic details
The worst scenario that one can face during studies is absence of financial support. This means that you will have to work and study at the same time, which is probably one of the toughest thing to do in this world. The other option is to quit your college. Fortunately, there is a third solution – education loan.
Education loan in India is made for students and their needs. This amount of money can cover all educational expenses, starting from books, and going all the way to accommodation and any other additional college charges. The best thing is that everyone can apply. Your college or study programs are not important when you apply. Most banks also support students who are studying abroad, and some of them have special benefits for female students.
Indian banks understand that education is very important, so they have designed these loans for the youth of the country. Both students and parents can take this loan, and the repayment begins after course completion. If you are in financial trouble, education loan is one of the best solutions.
Why you need to consider applying for education loan?
When it comes to loans, the first thing that someone will ask is Interest Rates. Education loan Interest rates are very low. The banks know that a student can’t afford to pay for higher rates, so they are offering these schemes for fulfilling their educational requirements.
Along with this comes the repayment story. The best thing about education loans in Lucknow is that you don’t have to repay the loan until you are done with your education. The majority of banks will also give you some extra time so you can find a job and then start repaying the money.
Many people will choose personal loan instead of education loan. However, this is not a good choice. Personal loans have higher interest rates, and the repayment process may start very soon after the user has the loan amount. It is impossible for a student to keep along with this repayment pace. As we could see, education loan has a completely different arrangement. This loan fits into and along with student’s needs. Another advantage lies in education loan eligibility criteria. It covers all universities in India, which means that any student can become an education loan applicant.
Education loan details that you need to know before applying
Lucknow education loans can be a good choice to refresh your credit history. In most cases, if you have an education loan in your credit history while applying for another loan, you will get lower interest rate. This is because education loan develops confidence on you for the bank. A person that invests in education is a reliable and serious person who will surely repay the loan.
There are different banks of India which can offer different education loan schemes. These banks have different document lists that you need to submit. When you choose a bank to apply for the loan, visit their website or their branch to find out the list of required documents.
Some of the documents are common for all banks. These are the documents containing information about annual income and your academic success. The financial experts will use them to calculate the amount that you can get. It is also useful to create a list of all your expenses. This can be used for determination of the loan amount, and it can help you to keep a record of all your costs.
Lucknow education loan Interest Rates
Lucknow education loans have different interest rates. Each bank has its own loan system, so you will have to explore each option to see which one is the most suitable for your purpose. You can start with these banks:
- Oriental Bank of Commerce: Lowest Interest rate is 9.40% and highest is 10.90%
- Bank of Baroda: Interest rate ranges between 9.60% and 11.85%.
- State Bank of India: Interest Rate is in the range of 10.80% to 11.10%
Banks in Lucknow that can provide you with a good education loan scheme
These are some of the banks that offer good education loan schemes in Lucknow:
1. Canara Bank:
- The best thing here is that there is no margin for loans under Rs 4 lakhs
- For amounts more than Rs 4 lakhs, margin is 5% for students in India and 15% for students abroad
- Maximum amount of the loan is Rs 10 lakhs for studying in India and Rs 20 lakhs for studying abroad
2. Kotak Bank:
- Interest Rate is between 11.5% and 24%
- The maximum amount for students in India is Rs 10 lakh
- For students abroad the biggest amount is Rs 20 lakh
3. ICICI Bank:
- Interest Rate amounts to 11%
- You can take loan up to Rs 10 lakhs
- Margin is 5% for loans over Rs 4 lakhs
4. Union Bank of India:
- Interest rate ranges between 11.05% and 12.55%
- There is no security required if you take a loan under Rs 4 lakh
- The maximum loan amount is Rs. 10 lakhs
Check these banks when you start your search for education loan. Numerous banks in Lucknow are offering these loan schemes. However, if you can’t deal with all those bank visits, you can apply online. Paisabazaar.com has everything that you need.
This website will require you to submit some information like:
- Your personal details
- Your income
- You education
Paisabazaar.com will then give you a list of loan options suitable to your needs.