Best Education Loan in India

Eligibility Criteria for an Education Loan

• Nationality: Citizens of India, Non-Indian Residents (NRIs), Overseas Citizens of India (OCI), Persons of Indian Origin (PIOs), and Students born to Indian parents abroad and wish to study in India.
  
  
• Courses: Nursery to class 12, Approved graduation and post-graduation courses, Job oriented courses, Doctoral courses, PhDs, Diploma courses, etc.
  
  
• Collateral: Residential or commercial property, plot, fixed deposits, and insurance.

Expenses Covered under Education Loans in India

Education loans in India typically cover the following expenses-

1. Tuition Fees: This includes the fees charged by the educational institution for the course or program.
2. Examination Fees: This includes any fees the educational institution charges for exams, projects, or assignments.
3. Library Fees: This includes any fees the educational institution charges for using the library or accessing online resources.
4. Hostel Fees: This includes any fees the educational institution charges for accommodation in a hostel or dormitory.
5. Laboratory Fees: This includes any fees the educational institution charges for access to labs or other specialized equipment.
6. Travel Expenses: This includes any costs associated with traveling to and from the educational institution, including airfare, train tickets, and bus tickets.
7. Books And Other Study Materials: This includes the cost of purchasing books and other materials required for the course or program.
8. Insurance includes any insurance premiums required by the educational institution, such as health insurance or accident insurance.
9. Other Miscellaneous Expenses: This includes additional costs associated with pursuing a course or program, such as printing costs or equipment rental fees.

You can even use Education Loan EMI Calculator to calculate your EMI and assess your loan estimation and computations.

List of Documents Required for Education Loan

Here is a list of documents required for an education loan approval in India-

• Admission Letter From The Educational Institution Applied To
• Previous Marksheets
• Age Proof
• Id Proof
• Address Proof
• Signature Proof
• Latest Salary Slips
• Latest Bank Statements
• ITR With The Income Computation
• Audited Balance Sheet
• Proof Of Turnover
• Completed Application Form With Signature
• Latest Passport-Size Photographs
• Appropriate Visa For Abroad Studies

Advantages of an Education Loan in India

Here’s why opting for an education loan when you need it is a good option for you-

1. Affordable Interest Rates: Education loans in India usually have lower interest rates than other types of loans, making them more affordable for students and their families.
   
   
2. Long Repayment Tenure: Education loans generally have longer repayment tenures, allowing borrowers to repay the loan in small instalments over a more extended period. This makes it easier for students to manage their finances and repay the loan without feeling overwhelmed.
   
   
3. Tax Benefits: Students who take out education loans in India can avail of tax benefits under the Income Tax Act. This can help reduce the overall cost of the loan and make it more affordable for students.
   
   
4. No Collateral Required: Many education loans in India do not require collateral up to a decided amount, making them easier to obtain for students who may not have collateral to offer.
   
   
5. Covers the Entire Cost of Education: Education loans can cover the entire cost of education, including tuition fees, accommodation, and other expenses related to studying abroad. This can be especially useful for students who may not have the funds to cover these costs independently.
   
   
6. Helps Build Credit: Repaying a study loan in India on time can help students build a good credit score, which can be beneficial when applying for other loans or financial products.

Best Education Loan in India

The following are some of the best education loans offered, along with their respective education loan details and brief overview-

1) Punjab National Bank Education Loan

Punjab National Bank (PNB) offers education loans for students who wish to pursue higher education in India or abroad. The loan amount can be any number based on the needs.

The loan is available for various courses, including graduation, post-graduation, and professional courses. 

2) SBI Education Loan

The SBI Education Loan is a financial assistance program offered by the State Bank of India (SBI) to students pursuing higher education in India or abroad.

The loan is designed to help students cover the costs of tuition, fees, books, and other expenses related to their studies. The repayment is to be done one year after course completion. And requires zero processing fees for loans up to Rs.20 lakh.

3) Axis Bank Education Loan

Axis Bank offers education loans to students who wish to pursue higher studies in India or abroad. It is one of the best bank for education loan in India. The loan amount is based on the course and institution chosen by the student and can cover tuition fees, hostel fees, and other expenses.

The minimum loan amount you can get is Rs. 50,000, and the loan disbursal is done within 15 business days after application submission. 

4) Bank of Baroda Education Loan

Students who have secured admission to a recognized institution for higher studies in India or abroad through a competitive examination or merit-based selection process can get approved for this loan.

There are no processing fees or documentation charges. No collateral is required up to 7.5 lakhs. Repayment of the loan begins one year after completion of the course or six months after getting a job, whichever is earlier.

5) HDFC Bank Education Loan

HDFC Bank offers one of the best education loans for students in India based on course fees, living expenses, and other expenses associated with the course.

The repayment tenure is of up to 15 years. No collateral is required for a loan of up to INR 7.5 lakhs.

Conclusion

It is essential to research and compare different education loan details and options before applying, as the terms and conditions of these loans can vary significantly. Also, carefully read and understand the loan agreement, including the interest rate, repayment terms, and applicable fees or charges.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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Research Analyst - Himanshu Sinha