Apply Online Education Loans for Studying in India and Abroad from All Indian Banks

Education in India is getting costly, so indian banks are providing education student loans for studying in India and abroad

Here are some guidelines provided by Indian Bankers Association (IBA) for giving Education loans for students in India.

Eligibility criteria for educations loans

Student eligibility for education loans in India

The applicant should be an Indian National and should have secured admission to professional/ technical courses in India or Abroad through Entrance Test/ Merit Based Selection process.

There is no specific restriction with regard to the age of the student to be eligible for education loan.

Courses eligible for education loans

Courses available in India and Abroad are eligible for student loans

Here are some of the courses which can get education loans

  • Graduation courses like BA, B.Com., B.Sc., etc.
  • Post Graduation courses : Masters & Phd.
  • Professional courses : Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.
  • Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to university.
  • Courses like ICWA, CA, CFA etc.
  • Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc.
  • Regular Degree/Diploma courses like Aeronautical, pilot training, shipping etc., approved by Director General of Civil Aviation/Shipping, if the course is pursued in India. In case the course is pursued abroad, the Institute should be recognized by the competent local aviation/shipping authority
  • Courses offered in India by reputed foreign universities.
  • Evening courses of approved institutes.
  • Other courses leading to diploma/ degree etc. conducted by colleges/ universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc
  • Courses offered by National Institutes and other reputed private institutions. Banks may have the system of appraising other institution courses depending on future prospects/ recognition by user institutions.

Education loans for studying abroad 

  • Graduation : For job oriented professional/ technical courses offered by reputed universities.
  • Post graduation: MCA, MBA, MS, etc. Courses conducted by CIMA- London, CPA in USA etc.

Expenses considered for Education loan :

  • Fee payable to college/ school/ hostel.
  • Examination/ Library/ Laboratory fee.
  • Purchase of books/ equipments/ instruments/ uniforms.
  • Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts, subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
  • Travel expenses/ passage money for studies abroad.
  • Purchase of computers – essential for completion of the course.
  • Insurance premium for student borrower
  • Any other expense required to complete the course – like study tours, project work, thesis, etc.
  • This also varies from Bank to Bank for example: SBI even gives 50,000 for getting a two-wheeler etc.

Amount available as Education loan

Education loans are given subject to repaying capacity of the parents/ students with margin and the following ceilings.

Studies in India – Maximum Rs.10.00 lacs.

Studies abroad – Maximum Rs.20 lacs

MARGIN :

Upto Rs 4 lacs Nil

Above Rs. 4 lacs : Studies in India 5%

Studies Abroad: 15%

– Scholarship/ assistantship to be included in margin.

– Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.

Security for Education loans

There is no security needed for Upto Rs 4 lacs but the loan is provided with Co-obligation of parents.

For education loans above Rs.4 lacs and upto Rs7.5 lakhs:  Co-obligation of parents together with collateral security in the form of suitable third party guarantee.

For education loans Above Rs.7.5 lakhs:  Co-obligation of parents together with tangible collateral security of suitable value, along with the assignment of future income of the student for payment of instalments.

Other conditions for Student loan

The loan documents should be executed by the student and the parent/ guardian as joint-borrower.

The security can be in the form of land/ building/ Govt. securities/ Public Sector Bonds/Units of UTI, NSC, KVP, life policy, gold, shares/mutual fund units/debentures, bank deposit in the name of student/ parent/ guardian or any other third party with suitable margin.

Wherever the land/ building is already mortgaged, the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount.

In case the loan is given for purchase of computer, the computer has to be hypothecated to the Bank.

Education loan interest rate

Upto Rs 4 lacs BPLR

Above Rs. 4 lacs BPLR + 1%

Simple interest will be charged during the Repayment holiday/ Moratorium period.

Education loan repayment conditions:

Repayment holiday/Moratorium : Course period + 1 year or 6 months after getting job, whichever is earlier.

The loan to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course.

The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Instalments (EMI) fixed.

1% interest concession may be provided for loanees if the interest is serviced during the study period when repayment holiday is specified for interest/ repayment under the scheme.

Girl students are given some concession in interest rates.

Education loan processing charges

No processing/ upfront charges may be collected on educational loans for studies in India.

Education loan sanction time:

Loan applications will be sanctioned within a period of 15 days to 1 month.

Education loan from banks

Here are links to all the banks that provides education loans. Interest rates of the education loans vary from bank to bank. Some banks allow online submission of application for education loans, or can download application forms for student loans.

Allahabad Bank

Application form

Andhra Bank

Application form

Bank of Baroda

BOB Scholar
Application form

Bank of India

Vidya Vardhini
Application Form

Bank of Maharashtra

Educational Loan Scheme
Application Form

Canara Bank Education Loan

Canara Bank education Loan
Application Form

Central Bank of India

CentvidhyarathApplication Form

Corporation Bank

Educational Loan Scheme Application Form

Dena Bank

Dena Vidya Laxmi Application Form

Indian Bank

Educational Loan Scheme
Application Form

Indian Overseas Bank

Vidya Jothi
Application form

Oriental bank of Commerce

Education Loan
Application Form

Panjab and Sindh Bank

Educational Loan Scheme
Application From

Panjab National Bank

Pnb Education Loan
Pnb Education Loan Application Form

State Bank of India

Sbi Education Loans
Sbi Education Loan Application Form

State Bank of Bikaner and Jaipur

Educational Loan Scheme
Application Form

State Bank of Hyderabad

Sbh Education Loan
Application form

State Bank of Saurashatra

Educational Loan Scheme
Application form

State Bank of Travancore

Sbt Education Loan
Sbt Education loan Application

Syndicate Bank

SyndVidya Application Form

UCO Bank

Educational loan Scheme

Union Bank of India

SyndVidya
Application Form

United Bank of India

Educational loan Scheme
Application Form

Vijaya Bank

Education Loan Scheme
Application Form

 

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Cheapest Bank Education Loans for Students

Are you looking for education loans? RBI and Government is encouraging banks to give education loans to eligible students for studies in India and Abroad. All the Indian Banks are now offering student loans for education for professional and non-professional courses without collateral and at different interest rates. So it is good to select a bank which offer cheapest education loan with less interest, anyway you have pay back the education loans as soon as you finish the studies.

So here are the 5 banks which offer the cheapest education loan with the lowest interest rates.

BankInterest Rate
United Bank of India11%
Punjab National Bank11.25%
Syndicate Bank11.50%
State Bank of Bikaner and Jaipur11.75%
Corporation Bank12%

Do you know any other bank which offers education loans cheaper than this?