For students, taking on an education loan is an excellent way to pay for their education, without relying on their parents. The first time your child repays a loan, they also establish a credit file. The better their credit profile, the easier it will be for them to obtain future loans
Education loans help to pay for education-related expenses or to finance postsecondary education. Education loans help pay for tuition, books, supplies, and living expenses while pursuing a degree. As long as the student is in college, the loans remain deferred; however, depending on the lender, they may remain deferred for another six months after they graduate. This period is known as a grace period.
Interest rates on Auto Loans is lesser than Personal and Business loan Interest rates. The interest rate starts 8% The interest rate on a Auto Loans varies from one bank to another bank and even NBFCs It also depends on your credit score
The documentation for applying an Education loans depends on the nature of the course. The applicant should have a co-borrower, such as a parent, who acts as a co-guarantor for the loan. The standard documentation includes Individual KYC like PAN Card, Aadhaar Card Home address proof and Company KYC like GST certificate, Shop and Establishment certificate Business Registration certificate etc. and Financial documents like returns filed for last 3 years, Bank statement for personal and current account for last 1 years of both the applicant and co-applicant. Additionally, Documents verifying scholarship awards and admission confirmation
To become eligible, one must be 16 years and 35 years with all valid and updated financials along with a credit score of 750 Plus. A document confirming the acceptance of the applicant must be present at the time of application.
The maximum loan that can be disbursed under Auto Loans will be 80% to 90% of the ‘On-road Price’ which is kept as a collateral.
What types of people are eligible for educational loans?
The eligibility criteria for education loans vary from bank to bank, but a few parameters are common:
● The applicant must be an Indian national.
● The applicant should have confirmed acceptance into a college/educational institution when applying for the loan.
● The applicant should fall between 16 and 35 years of age.
● The applicant should have a co-borrower, such as a parent, who acts as a co-guarantor for the loan.
What are the courses for which loans are available?
You can obtain an education loan for all regular courses abroad and courses recognized by UGC in India. It varies widely from lender to lender what kind of educational institution and course they will provide a loan for, whether overseas or in India.
In what ways does the education loan cover expenses?
● Expenses associated with tuition and accommodation.
● Fees for exams, libraries, and labs, if applicable.
● An educational institute's refundable caution deposit.
● Book, uniform, and other supplies needed for course completion.
● Travel expenses (return fare for international flights).
How long is the term of an education loan?
In most cases, an education loan is repaid within 5-7 years, depending on the lender. Some lenders, however, allow borrowers to extend the loan term up to 15 years when they are seeking a larger loan amount.
How can I apply for an Education loan?
We make it easy for you to apply for an Education loan. Easy, fast, and free! Fill out a short form and you're good to go. That's how we know you'd like to speak with us. One of our representatives will contact you shortly!
If you have a question that isn't answered here, please contact us.