Apply for Education Loan / Loan for College students
“Education is the most powerful weapon which you can use to change the world” influenced words by Nelson Mandela but nowadays education has also become the most expensive service to use, because of which maximum students are suffering.
Students mostly suffer from financial conditions because of which they go for an education loan. But they often remain confused and distracted as different banks have different policies, different interest rates, and many corporate to offer.
It’s good if you are getting a very low-interest rate. But what procedure you have to follow for an education loan? here is everything you need to know before you apply for one. Firstly you should be eligible as well as admitted to the institute of your choice and then you should have all the documents ready.
Some parents might believe for a personal loan over education loan but this belief is wrong. No doubt Education loans provide multiple benefits and now every bank is offering these loans at minimal interest rates whereas you might be paying more than the amount you have taken as a personal loan.
The cost of education in India is anywhere between 5 lakhs and 12 lakhs for undergraduate engineering courses. For medical courses in India, the fees can raise up to 50 lakhs in private colleges. Business schools in India charge more than Rs 10 lakh.
In abroad, the cost of higher education is much higher. Again, fees in private colleges are always more than the government colleges. Under such circumstances, students look for education
loans in India. Given a brief idea on how to apply for education loan.
Comprehensive Education Loan Scheme- Government of India
The Government of India has framed a Comprehensive Educational Loan Scheme in consultation with Indian Banker’s Association (IBA) and the Reserve Bank of India (RBI). The scheme covers all type of courses in schools and colleges in India and abroad.
Benefits of Education loans-
Applicable for education loan- Any student who wants to study can apply for an education loan. Even the economically backward sections of the society can take education loans under the government-sponsored subsidy schemes such as ‘Central Scheme to provide Interest subsidy’ (CSIS).
Available for all courses- Education loan can be used to pursue all types of education, bachelor’s, master’s, Ph.D.hether in India or abroad.
Easily Available- Educations loans are widely available. In fact, they are a priority in banks according to RBI.
Varied loan amounts- Education loans can vary from Rs. 2 Lakh to75 Lakhs according to countries.
Easy repayment- Another great advantage of education loan is repayment period can be extended to 5 years from the date of completion of the course which is unlike a personal loan.
Popular banks in India that offer loans-
- Punjab National Bank
- State Bank of India
- Bank of India
- HDFC Bank
- ICICI Bank
- United Bank of India
- Credila (An HDFC initiative)
- Dena Bank
- Central Bank of India
- Axis Bank