What courses are applicable for an Education Loan in India?

[Kanika Shelatkar]

The education system in India is intense. Numerous universities offer degrees and diplomas in a range of courses and specialisations. Our country is also the education hub for students worldwide. Nowadays, you require new-age funding options that provide the benefits of quick sanctioning and processing.

An Education Loan is the cost of studies borne by a bank or financial institution to students who wish to undertake professional degrees or courses from India and abroad. They cover tuition fees of the institution, examination fees, accommodation costs, travel expenses, and associated pre-admission fees.

Pre-requisites
Quality education builds the pathway towards success, and every individual has the right to avail opportunities to fulfil their academic ambitions. Study Loans cater to a massive market of students interested in pursuing further studies to grow and prosper in life. Knowing the eligibility criteria, coverage, loan process, interest rates, security services, processing fees, documentation, etc.

Benefits
A Student Loan has many benefits. Lenders offer higher loan amount limits and execute hassle-free and quick sanctions through fast documentation to set a benchmark. The advantages include instant approval, tailor-made loan structuring, higher tenure, flexible repayment options, transparent charges, insurance, and a digital KYC process.

Applicable courses
Most of the courses are applicable for an Education Loan in India to assist deserving students. You study almost any course from an accredited institution, including undergraduate degrees, diplomas, postgraduate degrees, PhD, specialised training courses, certificate courses, and vocational courses.

How to apply?
The loan covers course fees and college charges like accommodation, study material, travel expenses, etc. To apply for Student Loan, you require some documents like college admission letter, fee structure, KYC documents, and income documents of the applicants, including bank statements, salary slips, and IT returns.

Avail of a Student Loan in India with parents or guardians as co-applicants. The repayment begins a year after completing the course or within six months of getting a job, whichever is earlier.

Margin percentage
Loan applications of up to Rs. 4 lakh do not require margin. A margin of 5% applies for higher loan amounts for studies in India and 15% for studies overseas.

Guarantee or collateral
The bank asks for a third-party guarantee or collateral depending upon the loan value. Pledge it in the form of an insurance policy in favour of the bank. You can include a policy premium in the loan amount.

Points to note
If it is a girl student, you get a concessional Education Loan interest rate. After applying for the loan, you are eligible for tax benefits under Section 80E. Build an impressive profile for banks to provide attractive rates. Research well and compare schemes for the best results.

https://www.bankofbaroda.in/education-loan-interest-rate.htm