A brief depiction of education loan
Education loan is a loan made for student purposes, and every citizen of India can apply for it. The loan amount will cover all your expenses, ranging from books all the way to college tuition fees and accommodation costs. It is one of the best solutions that you can use when you need financial support for your education.
Every student or parent can apply for the loan. The bank will finance every college and institution in India, and you can even apply if you are willing to study in abroad. Many banks in India are offering special schemes to female students. These loans include various discounts and lower Interest Rates.
We all know that education is an important period for a young man or woman. However, many things can go wrong, and losing financial support is surely one of the worst scenarios that can happen. An education loan in Nagpur can help you in financing your education related expenses.
Reasons to apply for education loan
Education loan in India has many advantages compared to other loans. This is one of the best options if you have problem in financing your education. The first thing that needs to be mentioned is Interest Rate. This loan has very low Interest Rates, regardless of the bank you choose. Unlike a personal loan that is not designed for students, this loan will make it easy for you to repay the borrowed money.
A personal loan possess higher interest rates as compared to education loan and choosing personal loan over education loan can be a big mistake because it’s very difficult to repay the loan while you are studying. Repayment is also a big issue here; you have to repay the personal loan amount in a short time notice. This can create an even worse situation for students.
Fortunately, Nagpur education loan has a different repaying method. You are not under any obligation to return the loan until you are done with your education. Many banks will even provide you extra time to find a job that will help you with the repayment.
Things that you should have in mind when applying for the loan
Besides low Interest Rates and good repayment method, education loan contains other benefits too. Nagpur education loan will improve your credit history. When you decide to take another loan, your credit history will play a major role in the loan sanctioning process. An education loan scheme can provide you lower Interest Rates or other benefits. This is because the bank will see you as a reliable and serious person who is ready to invest in some serious activities.
The education loan eligibility covers all universities in India. Every student with a will to study and to gain higher knowledge can become an applicant of education loan.
The application process for Nagpur education loan is very simple. You will have to check what documents you need to submit. Each bank has its own document list, and you should visit the nearest branch of your bank, or check their website for further information.
Interest Rates in banks of Nagpur
The Interest Rates for education loan in Nagpur is in the range between 12.00% and 16.00%. Here are some examples of Interest Rates that you can find:
- HDFC Bank: Interest Rate can go up to 15.25%
- Union Bank of India: Interest Rate goes from 11.05% to 12.55%
- Federal Bank: Interest Rate is between 10.72% and 15.32%
Banks in Nagpur where you can take education loan scheme
When it comes to education loan schemes, you can check the following banks in Nagpur:
1. State Bank of Hyderabad:
- Smallest Interest Rate is 10.75% and it can go up to 12.75%
- The biggest amount for students in India is Rs 10 lakh. For students abroad it is Rs 20 lakh
- Margin amounts 5%, only for loans over Rs 4 lakh
2. Canara Bank:
- Interest rate ranges from 10.85% to 11.35%
- The biggest possible amount is Rs 10 lakh
- For amounts bigger than Rs. 4 lakh, margin amounts 5%
3. Bank of Baroda:
- Interest Rates range from 9.85% to 12.60%
- The longest possible tenure is 15 years
- Margin exists and it amounts 15%
4. IDBI Bank:
- Interest Rate is between 9.45% and 12.35%
- The longest possible tenure is 15 years
- If you want to take amount over Rs 4 lakh, you need to have a third party security
If you need to apply for education loan in Nagpur, you can visit Paisabazaar.com. This is one of the safest and fastest ways to apply. Paisabazaar is the right thing for you if you can’t find space in your schedule to visit the bank.
You just have to submit your personal details and details about your education. These details will be of great use during loan construction. You can choose the tenure and the amount of the loan. The system will then show you a list of possible offers. You can check them all, and choose the one which suits you the best.