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Education Loan

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What is an Education loan?

Education is what defines a person and creates the pathway for a bright and successful future. Every ambitious student wishes to work hard and perform well in his/her studies. However, we all know that the cost of education is increasing with each passing year, especially at the established and reputed institutes. Therefore, whenever you decide to pursue higher studies from some well-known institute, funds needed will definitely come under consideration at some point of time. An education loan can ease off our load and ensure that money doesn’t become a worrying factor or obstacle for you.

Study loan or an education loan is generally classified as a type of personal loan offered by well-known banks and financial institutions of India. As this loan is normally meant for students opting for higher studies, they can be classified into multiple categories: education loan for study abroad, domestic education loan, undergraduate education loan, graduate level education loan and career loans meant for people wanting to undergo certification courses and/or career oriented programs.

These loans can be repaid later when the student finds a suitable job after the completion of the program. The size of the education loan will depend on multiple factors including the course opted for and the college. Normally, such study loans cover all expenses involved in higher education such as tuition fees, examination fees, accommodation charges, laptop, laboratory charges, library charges, uniform, project work, instruments, books and more.

What is its eligibility criteria?

The eligibility criteria to avail a student loan or an education known in India is as follows:

  • Age: 18 years to 27 years for undergraduate study loans; 21 years to 35 years for postgraduate study loans; 27 years to 55 years for doctoral course loans and 27 years to 65 years for postdoctoral course loans.
  • You should be a resident of India.
  • Most education loans make it mandatory to bring in a co-applicant for the loan. The co-applicant can be the student’s spouse or parent.
  • The co-applicant’s salary or income should fall in line with the minimum income criteria laid out by the lending establishment.
  • The lending establishment might also ask for a collateral in the event that the required education loan is higher than the limit specified by them.
  • You should have a sound academic career, having performed well at different stages of your student life.
  • You should have already secured admission into the course and college that you require the education loan for.

Probable interest rate & loan tenure

The interest rate charged on study loans or education loans are slightly higher than home loans. The exact rate will depend upon how well you meet the eligibility criteria and the lending establishment, but in most cases it’s in the range of 8.45% to 15.2% per annum.

Please note, students who have secured admission into premier institutes such as IIMs and IITs can get comparatively better deals. The interest rates are also usually relaxed for female applicants and in case of public sector banks. The tenure of an education loan is pretty flexible, usually going up to 15 years. You can borrow an amount up to 1.5 crore or even higher in some cases depending upon the institute and the lender’s policies.

How to avail an Education loan in India?

The best and quickest way to avail an education loan or a study loan in India is by visiting GoSahi.com and comparing offers extended by various banks and NBFCs. You can even seek help of our qualified and seasoned experts who can handhold you through the entire process, right from loan application till the point of disbursal.