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India - How to get an Educational Loan

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ProcedureEdit

First check whether your educational institute has a tie-up with any bank for educational loans. If it has, there could be more flexibility in collateral and documents required or interests rates offered to you. If not, it is preferable to approach the bank branch where one of the parents have an account. However, in certain cities, there may be branches designated for issuing education loans.

This loan is repayable from one year after the completion of the course or from 6 months from gainful employment whichever is earlier. The repayment period is typically 5-7 years. The interest until the beginning of repayment is borne by the Government of India for low income families. After repayment starts, the borrower can claim income deduction for the interest under section 80-E.


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Required DocumentsEdit

  • Completed Loan Application Form (see below)
  • 2 Passport Size Photographs
  • Proof of residence (passport, voter's ID card, etc)
  • Proof of admission
  • Parent's proof of income (salary slip, form 16)
  • Parent's bank account statement (last 6 months)
  • Parent's Income Tax Assessments of last 3 years
  • Aadhaar Card
  • 10th/12th/Graduation/Post Graduation marks statements (all applicable)
  • A detailed statement from the institute giving the breakup of expected expenses
  • Proof of satisfactory academic performance after loan approval for every semester

If the individual was working full time before the course, he/she should also submit

  • Details of Present Employment.
  • Proof of income (salary slip, form 16) and Income Tax Returns for the last 3 years


Office Locations & ContactsEdit

Please list down the office locations that can be approached for applying. External links can also be used for specifying office locations.


EligibilityEdit

  • Graduation, post-graduation, technical and professional courses conducted by colleges approved by UGC/ AICTE/IMC/Govt
  • Courses conducted by autonomous institutions like IIT, IIM etc
  • Teacher training/ Nursing courses approved by Central/State Government
  • Regular Degree/Diploma Courses like Aeronautical, Pilot training, Shipping etc. approved by Director General of Civil Aviation/Shipping


FeesEdit

  • Tuition Fee
  • Examination
  • Books/Computer
  • Hostel
  • Insurance
  • Educational trips
  • Uniforms
  • Library/Laboratory
  • Passage Money for travel abroad
  • Two-wheeler (upto Rs. 50,000/-)


ValidityEdit

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever


Documents to UseEdit

Please attach documents that can be used by people. e.g. links


Sample DocumentsEdit

Please attach sample completed documents that would help other people.


Processing TimeEdit

Please explain processing time taken in obtaining the document/certificate.


Related VideosEdit

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external websites.
Please remove the "&" inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M".


InstructionsEdit

Please provide other instructions related to the certificate/documents.
e.g. The state office holds birth records since january 1908.


Required InformationEdit

Amount LoanedEdit

  • In India - a maximum amount of Rs 10 lakhs can be drawn
  • Abroad - a maximum amount of Rs 20 lakhs can be drawn

For amounts less than Rs 4.5 lakhs, there's no need for security. Any amount between Rs 4.5 lakhs and upto Rs 7 lakhs requires a parent to be a co-obligant. For loans beyond Rs 7.5 lakhs, tangbile collateral security (usually a house) must be hypothecated. All loans are secured by parent of the student borrower. In case of married person, co-obligator can be either spouse or the parents/parents-in-law

DisbursementEdit

The loan is disbursed in stages as per requirement directly to the institutions and associated vendors of educational paraphenalia. The lending institution may also make a request with the educational institution for your progress reports and link disbursals to it.

Things to CheckEdit

  • Whether interest rate offered is fixed or floating
  • Whether certificates will be retained by bank during the period of the loan
  • Processing fees and prepayment penalty


Need for the DocumentEdit

Anyone who has secured an admission into an approved course in India or elsewhere is eligible for an Educational Loan. The bank manager has discretion in approving the loan based on the student's academic performance and the expected employment opportunities for the course.


Information which might helpEdit

Enter other informations which might help.


Other uses of the Document/CertificateEdit

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.


External LinksEdit


OthersEdit

NotesEdit

  • Vocational training and skill development study courses are not covered


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