What is Education Loan, Types, Eligibility, Documents

What is Education Loan?: All the parents spend their entire savings to provide good education to their children, but the fees in Hire Education are very high, in which all the savings of the parents are exhausted and they have to worry about the future of their children. Worry sets in.

But now parents can provide good education to their children by taking education loan and make their future bright. Many people want to take education loan but they do not have proper knowledge about education loan.

To solve this problem of yours, in today’s article we are going to tell you What is education loan We are going to give complete information about. In this article you will get everything that one should know before applying for education loan.

So let’s start this article without losing time and know more education Loan what Would Is Expansion in Hindi from,

What is education loan, its types, eligibility, documents

What is Education Loan?

Education loan is a special type of education loan. Loan happens to whom a parent wishes for the good education of his child. Bank or borrow from financial institutions. And when the student gets a job after completing the course, he has to repay that loan along with interest.

In today’s time, taking an education loan has become easier than before, you can apply for an education loan online from the comfort of your home. Education loans are very beneficial for students to pursue their preferred course.

If you are a promising student, then you can make your future better by pursuing a good course by taking an education loan. Almost all major banks in India like SBI, ICICI, PNB, Axis Bank etc. provide education loan facilities, apart from these many NBFCs also offer education loan.

Where can I use the education loan

You can use the education loan for the following purposes –

  • to pay for college
  • buying books for the course
  • Expenses incurred while living away from home for studies
  • Students studying abroad can use education loan for their travel.
  • Other expenses incurred to complete the course, such as going on a study tour, in laboratories, completing a project, etc.

Types of Education Loan

Education loans are mainly classified into three types –

  • by location
  • depending on the course
  • on the basis of security

Let us now understand these three types of education loan one by one.

#1 – Location Based Education Loan

There are 2 types of education loans depending on where the student is taking the loan to study,

Domestic Education Loan

When a student takes an education loan to study in a college in India, he gets a Domestic Education Loan. You can use this type of loan only for pursuing studies in India.

Overseas Education Loan

When a student takes an education loan to study in colleges outside India, it is called Overseas Education Loan.

#2 – Course wise Education Loan

There are mainly three types of education loan depending on the course –

Undergraduate Education Loan

When a student takes a loan from a bank or financial institution to complete his graduation or to obtain a bachelor’s degree, it is called an Undergraduate Education Loan.

Postgraduate Education Loan

When a student takes a loan from a bank or financial institution to pursue further studies after completing his graduation, it is called a postgraduate education loan. You can use this loan to pursue master’s studies like M.Sc, MA, MBA, M.Com etc.

Career Development Loan

When a student does a special course to improve his career, and to do that course, when he takes a loan from a bank or financial institution, it is called a Career Development Loan.

#3 – Education loan on the basis of security

Many banks and NBFCs provide secured education loans while many provide unsecured education loans. There are mainly two types of education loans on the basis of security.

Secured Education Loan

Education loans that are secured by an asset are called Secured Education Loans. In Secured Education Loan, the lender pledges any of your valuable assets so that if for some reason you are unable to repay the loan amount, then they can recover the loan from your property.

Unsecured Education Loan

Such education loan which is not secured by any type of property is called Unsecured Education Loan. In unsecured education loan, you do not have to pledge any of your assets with the lender. Many banks and NBFCs offer unsecured education loans.

Eligibility for taking education loan

To avail an education loan in India, the following eligibility and conditions of the bank and NBFC have to be fulfilled.

  • The citizenship of the applicant should be Indian.
  • The age of the applicant should be 18 years or more.
  • Academic record of the applicant should be good.
  • The parents of the applicant should have a fixed source of monthly income.
  • Applicant must have Admission Form for any Diploma in recognized college.
  • For Undergraduate Education Loan, the applicant must have 12th pass mark sheet.
  • For Postgraduate Education Loan, the applicant must have a graduation degree.

Some education loan providers may have other terms and conditions in addition to these, so check all the terms and conditions before applying for the education loan.

Documents required for taking education loan

To take an education loan, the applicant must have the following necessary documents –

  • KYC documents (Aadhar card, pan card,
  • Age Proof (10th Marksheet, Aadhaar Card, Voter ID Card, Passport, Driving License)
  • Identity Card (Aadhaar Card, PAN Card, Voter ID)
  • Current residence proof (water, electricity, gas, telephone bills etc.)
  • Income proof of parents (salary slip, form 16, last 6 months bank statement etc.)
  • Admission form of the college in which you are taking admission
  • College Fees Structure
  • Marksheet of 10, 12 and graduation

These are the basic documents for all education loans, although some education loan providers may take other documents apart from these.

How much do you get education loan

If you take an education loan for studies in India, then you get an education loan of up to Rs. 50 lakhs, but if you take an education loan for studies abroad, then you get an education loan of up to Rs. 1 crore.

There is no need to deposit any kind of property to take an education loan up to Rs 4 lakh, education loan from 4 lakh to 6.5 lakh requires a guarantor, who can be the parent of the child. But to take an education loan of more than 6.5 lakhs, you need to keep any of your assets as deposit.

Interest Rates in Education Loan (Education Loan Interest Rate)

The interest rates on education loans are very low as compared to personal loans. Generally, the interest rates in education loan range from 7 to 12 percent per annum. However, depending on the course and college, education loan providers can increase or decrease the interest rates.

For how long is the education loan available?

Repayment in education loan starts 6 months after the end of the course, but in many cases, this time can be extended up to 1 year if the applicant does not get a job. The complete repayment of the education loan has to be done within 5 to 7 years.

Things to keep in mind before taking an education loan

You should keep the following things in mind while taking an education loan –

  • Select the right bank or institution to avail the loan.
  • Know all about education loan
  • Understand the interest rates offered by the loan provider very well.
  • Understand the terms of repayment.
  • Find out about all other charges and fees applicable on the loan
  • Apply for the loan only after you understand the education loan very well.

How to apply for education loan

You can apply for education loan both online and offline. In online, you can apply for education loan by sitting at home and offline by visiting the concerned bank or financial institution. Here we have explained you the education loan application process in both the ways –

Application Process for Offline Education Loan

  • First of all, take your necessary documents, go to the concerned bank or financial institution and meet the manager there to get complete information about the education loan.
  • After this, take the application form for education loan and fill all the information on the form correctly.
  • After filling the form, submit the form along with the required documents.
  • Now the lender will check your education loan eligibility and if you are found eligible, the loan amount will be disbursed to you within 24 to 48 hours. bank account is transferred to.

Online Education Loan Application Process

  • First of all, login to the online portal of the concerned bank or NBFC.
  • After this, select Education Loan in the loan section.
  • Check your loan eligibility by filling in your basic details and uploading KYC documents.
  • If you are found eligible for the loan, then the loan amount is transferred to your bank account in 24 to 48 hours.

Advantages of Education Loan (Advantage of Education Loan in Hindi)

There are many benefits of education loan, here we have told you about some of the benefits below –

  • By taking an education loan, students can pursue their favorite course and make their dreams come true.
  • Repayment of education loan on time also improves the credit score, which makes it easier to take loan in future.
  • More time is available for repayment of education loan.
  • By taking an education loan, you can get a good education by taking admission in a recognized university.
  • Education loan has to be repaid when you complete the course and get employed.
  • You can study abroad.
  • Education loan is available at reasonable interest rates as compared to personal loan.

Disadvantage of Education Loan

Along with the advantages of education loan, there are some disadvantages as well, which are as follows –

  • There are many conditions in education loan due to which not everyone can get education loan.
  • It is difficult to get an education loan in courses where there is no guarantee of a job.
  • If your academic record is not good then you will hardly get education loan.
  • To avail an education loan above 6.5 lakhs, you have to pledge any of your assets with the lender.

FAQ: Education Loan

How much can I get education loan?

For studies in India, you can take an education loan of up to Rs 50 lakh and for studies abroad, many banks and NBFCs provide personal loans up to Rs 1 crore.

When does the repayment start in education loan?

Generally, Repayment in education loan starts 6 months after the end of the course, but in some cases the lenders also give time up to 1 year.

What happens if you don’t repay the education loan?

If you do not repay the education loan, then first the bank gives you a notice, but even after that if you do not take any action, then Penalty is imposed on you and the bank becomes entitled to your mortgaged property.

At what interest rates are education loans available?

Generally education loan has interest rates up to 7 – 12 percent per annum, but in some banks or NBFCs it can be up-down as well.

Which banks offer education loan in India?

Almost all major public sector and private sector banks in India offer education loans, out of which SBI, PNB, Axis Bank, ICICI, HDFC Bank are the main ones.

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Conclusion: Education Loan Information in Hindi

In today’s article we learned that What is education loan, its types, how to take education loan and what are the advantages and disadvantages of education loan, And along with this, we have provided you complete information about education loan so that you can get help in taking education loan.

We have full hope that after reading this article till the end, you must have understood very well about education loan. If you liked this article, then share it with your friends on social media to help them understand education loan.

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