How to Easily Get Education Loan 2021 at Low Interest Rate| Procedure to Get Education Loan

By | September 22, 2021

Education Loan 2021 at Low Interest Rate| Procedure to Get Education Loan in India – Getting into a top university and graduating with a university degree is one way for many people to achieve success in life. Higher education is an excellent investment because it guarantees a well-paying and rewarding career. Graduates in India can now get loans for a variety of reasons. You can borrow money from financial institutions or banks to help you achieve your dreams. You can apply for loans in this category to help pay for a professional diploma or a postgraduate degree. Graduate loans are advantageous because they are often supplied at moderate interest rates, ensuring that you do not have repayment difficulties.

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The Advantages of Taking Out a Student Loan 2021

  1. Loans for education are accessible for both domestic and international courses.
  2. The highest loan amount is one crore rupees.
  3. Repayment terms of up to 15 years are available.
  4. Interest rates begin at 7.30 percent per year.
  5. Moratorium length of up to one year following course completion or six months following employment placement
  6. Female students receive reduced interest rates.
  7. Major banks are offering collateral-free loans with no third-party guarantee up to Rs 7.5 lakh ($9400).
  8. Residential or commercial property, insurance, and fixed deposits are all acceptable forms of collateral.
  9. EMI (Equated Monthly Installment) repayment choices that are cost-effective
  10. Section 80-E of the Income Tax Act provides tax benefits on interest paid.
  11. Some lenders will give you a loan even if you haven’t been accepted or applied for a Visa.

Get Tractor Loan At Cheap Interest Rates in India 2021

Education Loan Interest Rates of Banks

Bank Name Education Loan Interest Rates to Study within India Education Loan Interest Rates to Study in Foreign Country
Avanse DHFL  12.65%12.65%
Axis Bank  13.70%13.70%
Bank of Baroda  7.70%8.35%
Bank of India  8.95%8.95%
Bank of Maharashtra 8.55% 8.55%
Canara Bank 8.50% 8.50%
Central Bank of India 8.50% 8.50%
Corporation Bank 8.80% 8.80%
Federal Bank 10.05% 10.05%
IDBI Bank 6.90% 8.40%
Indian Bank 7.15% 7.15%
Indian Overseas Bank 9.05% 9.05%
Karnataka Bank 9.85% 9.98%
Karur Vysya Bank  10.60%10.60%
OBC 7.05% 10.65%
PNB 7.55% 10.65%
SBI 7.00% 8.80%
UCO Bank 9.30% 9.30%
Union Bank of India 8.40% 8.05%
United Bank of India  10.65%10.65%

Eligibility Criteria to get Education Loan 2021

To approve a student loan, banks usually look at the following factors:

  • The applicant must be a citizen of India.
  • The applicant should be between the ages of 18 and 35.
  • A good academic record is required of the applicant.
  • The applicant must have been accepted into a well-known university or institution.
  • The courses eligible for education loan are generally provided by the banks

Documents Required for Education Loan 2021

The following are some of the documentation that must be submitted when applying for a graduate loan:

  • A passport, Aadhar card, driver’s licence, or other form of identification is required.
  • Utility bills, passports, and other forms of identification can be used to prove your address.
  • Last twelve months’ bank statement (the period may vary from institution to institution).
  • PAN (Personal Identification Number) card
  • If you are working, self-employed, or have income from other sources, you must provide proof of income.
  • Class 10 or equivalent certificate, Class 12 or equivalent certificate, Graduation certificate
  • Admission papers, including a letter of admission in the event of a graduate education loan
  • Documentation related to the institution’s fee structure,  in which he/she wants to Join. 
  • Information on living expenses
  • Details about the firm to be started — in the case of graduate start-up loans
  • Any other documents that the institution in question may require

While this list is thorough and includes the majority of the essential documents, it is not exhaustive. For a more complete list and details, please visit the website or office of the concerned institution where you are asking for a loan.

Expenses Covered by Banks in Education Loans 2021

Banks normally covers over all expenses of studies under Education Loan 2021. Followings are main expenses that banks cover under Education Loan 2021:

  1. Fees to be paid to the college or university, as well as expenses for the hostel.
  2. Even in the case of a student exchange programme, travel expenses or passage money from the destination country to the return country.
  3. The student borrower’s insurance premium, if any life insurance is chosen.
  4. Fees for examinations, libraries, and laboratories.
  5. Any other costs associated with completing the course, such as a study tour, etc.
  6. Uniforms, books, and instruments
  7. If necessary, personal computers or laptops.
  8. Caution deposit, construction fund, and refundable deposit backed by institution bills As long as it is less than 10% of the course’s total tuition charge.

Government Education Loan Subsidy

What is an Interest Subsidy Scheme?

As a subsidy, students from economically disadvantaged backgrounds can collect interest on their school loans from the government. Students can get loans from the country’s scheduled banks without having to put up any collateral as security.

Eligibility to Get Subsidy on Education Loan Interest

  • The maximum loan amount that students can get under the scheme is Rs 7.5 lakh. 
  • It’s also worth noting that students can only use the plan once in their lives, either during their graduation course, post-graduation course, or combination course. 
  • The scheme is only available to students enrolled in technical and professional degrees 
  • Whose parents’ annual income is less than Rs 4.5 lac.

Some Education Loan Interest subsidy schemes are given below:

  1. Education Loan Interest Subsidy Scheme of Center – For economically weaker sections to pursue technical/professional courses in India.

Please click here for more details of this scheme

  1. Padho Pardesh Scheme of Interest Subsidy for Education Loans – For students of minority communities to study abroad.

Please click here for more details of this scheme

  1. Dr. Ambedkar Central Sector Scheme of Interest Subsidy for Educational Loans – Dr. Ambedkar Central Sector Scheme of Interest Subsidy for Educational Loans is started for  Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) to pursue education abroad.

Please click here for more details of this scheme

FAQs for Education Loan 2021

  1. What kind of courses are eligible for student loans?

    The following are some examples of courses that are qualified for an education loan:
    1. Courses for graduation and post-graduation
    2. Courses for professionals
    3. Recognized institutions offer diploma/degree programmes.

  2. Can I get a tax reduction on my student loan?

    Yes, you can claim tax deductions for student loan interest and payments under sections 80C and 80E of the Income Tax Act of 1961.

  3. What is the maximum age for taking out an education loan?

    The age limit for obtaining a student loan/education loan is normally 30 years old. It may, however, be higher in some circumstances.

  4. What options do I have if my loan application is denied?

    When a bank rejects an education loan application, it usually gives a reason. You can file an RTI petition if you were not notified of the reason by the bank.

  5. What can I do if I am unable to obtain an education loan or if my loan application is denied?

    If you want to pay for your education but the course or institution you want to attend isn’t on the bank’s list, you might want to consider taking out a personal loan.
    Additionally, if you or your parents own a home, a loan against your home is a wonderful way to fund your education.

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