Who can apply for Education Loan?

• Indian citizens
• Non-Indian Residents (NRIs)
• Overseas Citizens of India (OCI)
• Persons of Indian Origin (PIOs)
• Students born to Indian parents abroad and wish to study in India

Which Courses are covered by Education Loan?

• Undergraduate programs
• Postgraduate programs
• Doctoral courses and PhDs
• Certificate courses with 6 months or longer duration
• Job-oriented courses
• Technical/diploma/professional courses

Collateral required for Education Loan?

• Collateral-free loans up to Rs.7.5 lakh from leading lenders
• Collateral-free loans up to Rs.40 lakh for select courses/institutions from select lenders

List of Expenses covered under Education Loan.

Here’s what the loan amount will cover:

• Tuition fees
• Hostel fees
• Travel expenses passage money for students studying abroad
• Insurance premium
• Cost of books/equipment/instruments/uniform
• Examination/laboratory/library fees
• Cost of a computer/laptop required for course completion
• Caution deposit, building fund/refundable deposit supported by institution bills/receipts
• Any other expense required to complete the course such as study tours/thesis/project work

What are the Features and Benifits of Education Loan?

• Loan financing up to Rs.1 crore available.
• Loan repayment tenure up to 15 years.
• Get Education loans for studies in India and abroad.
• Some lenders offer loan disbursal before applying for a Visa.
• Door-step service to collect required documents.
• Children of the bank’s employees enjoy preferential rates at several banks.
• Certain banks offer concessional interest rates to female students.
• Enjoy a moratorium period of up to 1 year after course completion. During this period, you do not have to make payments on the loan.
• Enjoy tax benefits up to 8 years on the interest paid.

Documents required for Education Loan

• Admission letter from the educational institution
• Marksheets (previous education – school/college)
• Age proof
• ID proof
• Address proof
• Signature proof
• Salary slips
• Recent bank account statements
• ITR with income computation
• Audited balance sheet
• Recent bank statements
• Proof of turnover (service tax return/sales receipt)
• Completed application form with signature
• Latest passport size photographs
• Appropriate Visa for studies abroad

How is education Loan repaid?

The loan repayment period usually starts 6-12 months after completing your course or when you get a job, whichever occurs first. Different lenders provide different moratorium periods to applicants to repay the loan. You will have to repay your loan through EMIs. Here are the different modes of repayments usually available:

• Internet Banking - Pay online through the lender’s website or mobile app.
• Cheque – Drop a cheque at any of the branches.
• Direct debit – Set up recurring payments for your EMI to be directly debited from your bank account on the payment due date.
• Demand Draft – Pay through a DD.