Educational Loans in INDIA - Help Guide for Students

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Educational Loans in INDIA

Loan for education is easily available at almost all the Indian Banks today. Their demand is continuously growing with the growth in youths inclination towards knowledge.

Education Loan  is available for most of the good MBA/ PGDBA course at a very competitive rates now days .

You can get loan  for following expense ( Will vary from bank to bank) :

*    Fee payable to college/school and hostel.
*    Examination/Library/Laboratory fee.
*    Purchase of books/ equipment’s/instruments/uniforms.
*    Caution deposit/building fund/refundable deposit supported by Institution bills/ receipt.
*    Travel expenses/ passage money for studies abroad
*    Purchase of Laptops/  computers-essential for completion of the course.
*    Any other expenses required to complete the course- like study tours, project work, thesis etc.
*    Cost of a two wheeler.

Most of the bank offer repayment holiday of course duration + 6 months to 1 year and you can pay back loan in installments in around 5 to 10 years .

The Loan Interest rate changes often , and will be around 10 %.

The documents required may vary depending upon the amount of loan you need. Following is list of some of the documents :

- Mark sheet of last qualifying examination.
- Proof of admission to the course.
- Schedule of expenses for the course.
- Copies of letter confirming scholarship, etc.
- Identification support documentation like Passport , Voters card, PAN card  etc.
- Brief statement of assets and liabilities of borrower.

If your loan amount is high (usually if more than 8 Lakhs ) the bank may ask for tangible Collateral security of suitable value of loan. Some banks may ask for a third party guarantee.