Not only competition in the job market but the rising cost of education is also a non ignorable sign of worriness among parents and students. Education loans can remove your education cost hassle, leaving hard work the only one to conquer the world.
Education Loan: Special Purpose loan given by banks and financial institutions to cover the cost of higher and professional courses. It covers all fees viz. examination fees, library fees, lab fees, caution deposits, hostel fees, building fees, uniform, books cost, equipments cost, travel expenses, computer cost, study tours cost, project work cost etc.
Courses included: Management, Engineering, Medicine, MCA, Fine arts, Hotel Management, Designing, Architecture, Arts, Pure Sciences and commerce. Banks cater both graduate and post-graduate courses.
Institutions included: Banks look for a college reputation and affiliation before sanctioning education loan.
Qualifying criteria: Once your course and college is approved, they need to evaluate your citizenship and age (should be between 16-30) and then you get 100% loan or partial loan, depends on the bank.
Loan amount: It could be as minimum as Rs. 50000/- and maximum upto Rs. 7.5 Lakhs (if studying in Indian University) or Rs.15 Lakhs (if studying in Foreign University).
Collateral or Guarantee: For higher loans (above Rs.4 lakhs), loan applicant needs to provide some form of collateral or guarantor who can be parent or guardian of student.
Repayment of Education Loans: The general criteria adopted by bank is start of repayment after 1 year of course completion or after 6 moths of getting job or whichever is earlier.
Documents required: Income proof of applicant, 10th class certificate, Residence proof, Identity proof, Letter of admission from institute, a document detailing cost-break up of course. A declaration or affidavit that he isn't seeking a similar loans from other banks or financial institutions and other documents as requested by bank.
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