Students perusing Higher Education do not have to struggle hard anymore to finance their Studies, as now many Banks in India are providing student loans. Not only loans, private foreign banks also seem to be interested in funding students,enthusiastic enough to announce scholarships for bright and deserving students.
With expensive professional education becoming mandatory for people across the country, a student loan seems the most effective way to tide over these expenses. Most students expect to land high salaries at the end of their professional training and are likely to be in a position to repay these loans over a period of time.
Lending loans for educational purposes is a part of the priority sector lending activity for Indian banks. The interest rates offered by banks are:
• Fixed interest rate
• Floating interest rate
Banks will charge interest on a daily or monthly reducing balance. Usually,nationalized banks offer variable interest rates for student loans,while private and foreign banks offer fixed interest rates. Some banks also offer a choice between the two.
Choosing a loan
Ideally,take a loan from a bank located at your place of study than one located where you reside, unless it concerns overseas studies. This is because you will have better access to funds if you take a loan from the place of your study. Secondly, Make sure the repayment period starts only after six to twelve months after you begin your working life. Thirdly,Banks typically prefer to finance students who opt for traditional courses.
For What Professional Courses do Banks generally provide education loans?
Management students are among the top choices for most of the banks. Technology students from the country s premier institutions can also get student loans from Banks and Medical and engineering college students.Banks don’t provide loans for students with a bachelors/masters in Arts. Also, for courses where employment prospects are less (as per Bank own evaluation), loans are sanctioned on the basis of the parents income.
Eligibility for getting a loan
The applicant should be an India National.
The applicant must have secured admission to professional/ technical courses through Entrance Test/ Selection process.
Secured admission to foreign university/ Institution.
Documents required for applying a Student Loan
All students are required to submit mark sheets of last qualifying examination, poof of admission scholarship, schedule of expenses for the specified course, his/her bank account statement for the last six months, an income tax assessment order for the previous two years, a brief statement of assets and liabilities, of the co-borrower, which is usually the parent or guardian and proof of income, if any.
1) Mark sheet of last qualifying examination for school and graduate studies in India
2) Proof of admission to the course
3) Schedule of expenses for the course
4) Copies of letter confirming scholarship, etc.
5) Copies of foreign exchange permit, if applicable.
6) Two passport size photographs.
7) Statement of Bank account for the last six months of borrower.
8) Income tax assessment order not more than 2 years old.
9) Brief statement of assets and liabilities of borrower.
10) If, you are not an existing bank customer you would also need to establish your identity and give proof of residence.
Repayment: Course period + 1 year or 6 months after getting job, whichever is earlier.
Banks offering Education Loans in India
Most of the Private Sector banks, Foreign Banks and Public Sector Banks in India are providing Student Loans. You can visit www.apnaloan.com/education-loan-india/rates.html for an overview of various loan Schemes offered by banks in India.
Interest rate charged for Student/education loan
Most banks are vying with each other to aggressively market personal loans.The student loan segment is being viewed as vast untapped potential.Almost every prominent bank in the country has a student loan scheme in some form. What matters the most to an individual is obviously the cost of credit the terms and conditions for education loans. These, like any other loan, vary among banks. Besides pricing of the product, the most important thing is documentation requirement and the quality of service offered by the bank and the speed at which the loan is approved.
Some banks, such as SBI, also give you a choice between fixed and floating interest rate. Whereas, private and foreign banks offer loans with a fixed interest rate, some banks charge interest on a daily or monthly reducing balance.
Banks & Interest Rates
1. State Bank of India (SBI)
Study Abroad: 13.25%
Study in India: 13.25%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered:Fees payable to college / hostel / Examination / Library / Laboratory fees / Purchase of Books / Equipment / Instruments / Caution Deposit /Building Fund / Refundable Deposit / Travel Expenses / Passage money /Purchase of computer.
2. Canara Bank
Study Abroad: 10.25%
Study in India: 10.25%
Cost covered:Course fees, purchase of books, equipments, instruments, payment of hostel fees, examination fees, study tours, passage expenses.
3. Central Bank of India
Study Abroad: 10.5%
Study in India: 10.5%
Cost covered:Fee payable to College/Hostel, Examination / Library / Laboratory,Purchase of books / equipments / instruments, Caution deposit /building fund, Purchase of computer, Travel expenses / passage of money.
4. Allahabad Bank
Study Abroad: 10.75-11.5%
Study in India: 10.75-11.5%
Repayment starts 1 year after course completion/ 6 months after obtaining employment (whichever earlier).
Cost covered: Fee payable to College/ School / Hostel, Examination/ Library/ Laboratory Fee, Purchase of Books/ Equipments/ Instruments/ Uniforms, Caution Deposit/ Building Fund/ Refundable Deposit supported by Bills/ Receipts of the Institution, Travel Expenses/ Passage Money, Purchase of Computers, Insurance premium for student borrower, Study Tours, Project Work and Thesis.
5. Oriental Bank of Commerce
Study Abroad: 11.5%
Study in India: 11.5%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered:Admission fee / Monthly fee / Examination fee, Books, equipments, Airfare expenses of hostel, expenses for study tours, project work,thesis.
6. Vijaya Bank
Study Abroad: 11.75%
Study in India: 11.75%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered: Fee payable to college / hostel / Examination / Library / Laboratory,Purchase of books / equipments / instruments, Caution deposit /building fund, Purchase of computer, Travel expenses / passage money.
7. Bank of Maharashtra
Study Abroad: 12.00%
Study in India: 12.00%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered: Tuition fees, hostel expenses, purchase of books / equipments / instruments, travel expense.
8. Punjab National Bank
Study Abroad: 12.25%
Study in India: 12.25%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered: Fee payable to College / Hostel, Examination / Library / Laboratory fee,Purchase of books / equipments / instruments, Caution Deposit /Building Fund, Travel Expenses / Passage, Purchase of computers.
9. Bank of Baroda
Study Abroad: 12.5%
Study in India: 12.5%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered:Fees payable to College / Examination / Library / Laboratory / Hostel /Purchase of books / equipments / instruments, Purchase of Computer /Caution deposit / building fund.
10. Bank of India
Study Abroad: 13%
Study in India: 13%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered:Fee payable to college / hostel / Examination / Library / Laboratory /Purchase of books / equipments / instruments / Caution deposit /building fund / Purchase of computer.
11. Indian Bank
Study Abroad: 13%
Study in India: 13%
Repayable in 5 - 7 years
Cost covered: Fee payable to college / hostel, exam, purchase of books / equipments, purchase of computer, travel expenses / passage money.
12. HDFC Bank
Study Abroad: 13-14%
Study in India: 13-14%
Cost covered:Fee payable to college/ hostel/ Examination/ Library/ Laboratory,Purchase of books/ equipments/ instruments, Caution deposit/ building fund, Purchase of computer, Travel expenses/ passage money.
13. UCO Bank
Study Abroad: 13.25%
Study in India: 13.25%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered: Course Fees, Hostel fees, Books, Equipment, Computers, Examination / Library / Laboratory fees, Travel Expense.
14. IDBI Bank
Study Abroad: 13.25%
Study in India: 13.25%
Cost covered:Fee payable to college/hostel, Examination/ Library/ Laboratory,Purchase of books/equipment/instruments, Purchase of computer.
15. Axis Bank
Study Abroad: 15.75%
Study in India: 15.75%
Repayable in maximum 7 years
Cost covered: Tuition fees, hostel charges (if any), cost of books, etc.
With expensive professional education becoming mandatory for people across the country, a student loan seems the most effective way to tide over these expenses. Most students expect to land high salaries at the end of their professional training and are likely to be in a position to repay these loans over a period of time.
Lending loans for educational purposes is a part of the priority sector lending activity for Indian banks. The interest rates offered by banks are:
• Fixed interest rate
• Floating interest rate
Banks will charge interest on a daily or monthly reducing balance. Usually,nationalized banks offer variable interest rates for student loans,while private and foreign banks offer fixed interest rates. Some banks also offer a choice between the two.
Choosing a loan
Ideally,take a loan from a bank located at your place of study than one located where you reside, unless it concerns overseas studies. This is because you will have better access to funds if you take a loan from the place of your study. Secondly, Make sure the repayment period starts only after six to twelve months after you begin your working life. Thirdly,Banks typically prefer to finance students who opt for traditional courses.
For What Professional Courses do Banks generally provide education loans?
Management students are among the top choices for most of the banks. Technology students from the country s premier institutions can also get student loans from Banks and Medical and engineering college students.Banks don’t provide loans for students with a bachelors/masters in Arts. Also, for courses where employment prospects are less (as per Bank own evaluation), loans are sanctioned on the basis of the parents income.
Eligibility for getting a loan
The applicant should be an India National.
The applicant must have secured admission to professional/ technical courses through Entrance Test/ Selection process.
Secured admission to foreign university/ Institution.
Documents required for applying a Student Loan
All students are required to submit mark sheets of last qualifying examination, poof of admission scholarship, schedule of expenses for the specified course, his/her bank account statement for the last six months, an income tax assessment order for the previous two years, a brief statement of assets and liabilities, of the co-borrower, which is usually the parent or guardian and proof of income, if any.
1) Mark sheet of last qualifying examination for school and graduate studies in India
2) Proof of admission to the course
3) Schedule of expenses for the course
4) Copies of letter confirming scholarship, etc.
5) Copies of foreign exchange permit, if applicable.
6) Two passport size photographs.
7) Statement of Bank account for the last six months of borrower.
8) Income tax assessment order not more than 2 years old.
9) Brief statement of assets and liabilities of borrower.
10) If, you are not an existing bank customer you would also need to establish your identity and give proof of residence.
Repayment: Course period + 1 year or 6 months after getting job, whichever is earlier.
Banks offering Education Loans in India
Most of the Private Sector banks, Foreign Banks and Public Sector Banks in India are providing Student Loans. You can visit www.apnaloan.com/education-loan-india/rates.html for an overview of various loan Schemes offered by banks in India.
Interest rate charged for Student/education loan
Most banks are vying with each other to aggressively market personal loans.The student loan segment is being viewed as vast untapped potential.Almost every prominent bank in the country has a student loan scheme in some form. What matters the most to an individual is obviously the cost of credit the terms and conditions for education loans. These, like any other loan, vary among banks. Besides pricing of the product, the most important thing is documentation requirement and the quality of service offered by the bank and the speed at which the loan is approved.
Some banks, such as SBI, also give you a choice between fixed and floating interest rate. Whereas, private and foreign banks offer loans with a fixed interest rate, some banks charge interest on a daily or monthly reducing balance.
Banks & Interest Rates
1. State Bank of India (SBI)
Study Abroad: 13.25%
Study in India: 13.25%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered:Fees payable to college / hostel / Examination / Library / Laboratory fees / Purchase of Books / Equipment / Instruments / Caution Deposit /Building Fund / Refundable Deposit / Travel Expenses / Passage money /Purchase of computer.
2. Canara Bank
Study Abroad: 10.25%
Study in India: 10.25%
Cost covered:Course fees, purchase of books, equipments, instruments, payment of hostel fees, examination fees, study tours, passage expenses.
3. Central Bank of India
Study Abroad: 10.5%
Study in India: 10.5%
Cost covered:Fee payable to College/Hostel, Examination / Library / Laboratory,Purchase of books / equipments / instruments, Caution deposit /building fund, Purchase of computer, Travel expenses / passage of money.
4. Allahabad Bank
Study Abroad: 10.75-11.5%
Study in India: 10.75-11.5%
Repayment starts 1 year after course completion/ 6 months after obtaining employment (whichever earlier).
Cost covered: Fee payable to College/ School / Hostel, Examination/ Library/ Laboratory Fee, Purchase of Books/ Equipments/ Instruments/ Uniforms, Caution Deposit/ Building Fund/ Refundable Deposit supported by Bills/ Receipts of the Institution, Travel Expenses/ Passage Money, Purchase of Computers, Insurance premium for student borrower, Study Tours, Project Work and Thesis.
5. Oriental Bank of Commerce
Study Abroad: 11.5%
Study in India: 11.5%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered:Admission fee / Monthly fee / Examination fee, Books, equipments, Airfare expenses of hostel, expenses for study tours, project work,thesis.
6. Vijaya Bank
Study Abroad: 11.75%
Study in India: 11.75%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered: Fee payable to college / hostel / Examination / Library / Laboratory,Purchase of books / equipments / instruments, Caution deposit /building fund, Purchase of computer, Travel expenses / passage money.
7. Bank of Maharashtra
Study Abroad: 12.00%
Study in India: 12.00%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered: Tuition fees, hostel expenses, purchase of books / equipments / instruments, travel expense.
8. Punjab National Bank
Study Abroad: 12.25%
Study in India: 12.25%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered: Fee payable to College / Hostel, Examination / Library / Laboratory fee,Purchase of books / equipments / instruments, Caution Deposit /Building Fund, Travel Expenses / Passage, Purchase of computers.
9. Bank of Baroda
Study Abroad: 12.5%
Study in India: 12.5%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered:Fees payable to College / Examination / Library / Laboratory / Hostel /Purchase of books / equipments / instruments, Purchase of Computer /Caution deposit / building fund.
10. Bank of India
Study Abroad: 13%
Study in India: 13%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered:Fee payable to college / hostel / Examination / Library / Laboratory /Purchase of books / equipments / instruments / Caution deposit /building fund / Purchase of computer.
11. Indian Bank
Study Abroad: 13%
Study in India: 13%
Repayable in 5 - 7 years
Cost covered: Fee payable to college / hostel, exam, purchase of books / equipments, purchase of computer, travel expenses / passage money.
12. HDFC Bank
Study Abroad: 13-14%
Study in India: 13-14%
Cost covered:Fee payable to college/ hostel/ Examination/ Library/ Laboratory,Purchase of books/ equipments/ instruments, Caution deposit/ building fund, Purchase of computer, Travel expenses/ passage money.
13. UCO Bank
Study Abroad: 13.25%
Study in India: 13.25%
Repayment starts 1 year after course completion / 6 months after obtaining employment (whichever earlier).
Cost covered: Course Fees, Hostel fees, Books, Equipment, Computers, Examination / Library / Laboratory fees, Travel Expense.
14. IDBI Bank
Study Abroad: 13.25%
Study in India: 13.25%
Cost covered:Fee payable to college/hostel, Examination/ Library/ Laboratory,Purchase of books/equipment/instruments, Purchase of computer.
15. Axis Bank
Study Abroad: 15.75%
Study in India: 15.75%
Repayable in maximum 7 years
Cost covered: Tuition fees, hostel charges (if any), cost of books, etc.