Beloved students, in this blog you will find the top best education loan in India for students in 2021. Following my analysis, I've compiled a list of the "Best education loan in India 2021." The essential criteria that banks evaluate before approving an education loan in India can be found in the article's later section.
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| Education Loan for Indian Students |
1.Axis Bank Education Loan
The maximum loan amount is Rs. 75 lakhs.
Axis Bank offers only one education loan scheme (starting from Rs. 50,000 to Rs. 75 Lakhs). Axis exclusively finances education loans for graduate or postgraduate degrees for students who have received at least 50% in their HSC or graduation.
- Up to 4 lakhs- 15.2%
- 4 lakhs to 7.5 lakhs- 14.7%
- Above 7.5 lakhs- 13.7%
The parent's profile is given more weight by Axis Bank. The bank has made it a requirement for parents to demonstrate proof of a consistent source of income.
PROS: The loan application is processed instantly.
A higher loan amount of up to 75 lakhs is available.
For loans under Rs. 10 lakhs, there is no processing cost.
CONS: A hefty interest rate.
For loans of more than 4 lakhs, a margin of up to 15% is available.
Late payments are subject to a penalty interest rate of 24 percent per annum.
Expert Advice: Before applying, have xerox documents of your income and net worth ready. The latest three years' IT returns, a copy of the CA certificate, sale deeds of immovable properties, FD and NSC receipts, Bonds, or Demat statements are all acceptable evidence documents.
2.HDFC Bank Education Loan
Maximum Loan Amount: Rs. 20 Lakhs and Upwards
HDFC Bank provides education loans to students in India and abroad. In India, the maximum amount of money that can be borrowed for education is Rs. 20 lakhs.
Whereas, for overseas schooling, the entire price of education is covered by the loan, with no upper limit. However, it is worthwhile to furnish the bank with collateral in the form of a fixed deposit or immovable property.
- Education Loan for Indian Education - 9.25% to 13.68%
- Education Loan for Foreign Education - 9.25% to 13.68%
The loan is for a maximum period of 15 years and is disbursed to the institution depending on the price structure.
You'll find that HDFC Bank does not have a dedicated schooling loan program for talent development programs. That is why they recommend using a private loan to fund talent development initiatives.
However, I think that taking out a private loan for academic purposes is a bad idea because of the higher cost of curiosity.
PROS: Lower rates of interest
Quick processing period
CONS: The loan processing fee is 1%.
Prepayment fees of up to 4% (in the course of the moratorium interval)
In India, there are fewer loans available for research.
Expert Advice: If you have premium savings account with HDFC or a long-standing banking relationship with them, your chances of acceptance are remarkably high.
3.Union Bank of India Education Loan
Need-based financing is the maximum amount of money that can be borrowed for education.
Union Bank of India offers four different types of education loans:
1.Education loans are available for courses both in India and overseas.
2.Kisan Shiksha Suvidha has received a loan for education.
3.Education loan for top management and technical schools (India)
4.Tier II Management & Technical Institutions Education Loan (India)
For school loans, Union Bank does not charge any processing fees to Indian students, regardless of the loan amount.
However, he requests life insurance in the amount of the debt. As a result, you'll need to get life insurance to obtain your student loan.
- Courses in India and overseas- as much as 10.05% relying on the quantum of loan
- For Kisan Shiksha Suvidha- as much as 10.05% relying on the quantum of loan
- For Premier Management & Technical establishments (India)Skill Development Courses- 6.80%
- For Tier II Management & Technical establishments (India)- 8.55%
PROS: No processing costs
Cheaper interest rate
0.50 % concessional interest rate for female students
CONS: Slow processing and documentation process.
Compulsory to get life insurance
Expert Advice: The credit guarantee fund scheme of Union Bank covers school loans. As a result, you must submit information about each application, including KYC certificates, valid income proofs, an allocation letter, and a clear pricing structure.
List of Documents Required for Education Loan
The following is a list of documentation that most lenders require.
- 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 the 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 to Apply for Education Loan
Applying online is the simplest and most convenient method of doing so. There are two options for submitting an online application. The first is a simple application form that you will complete online, attach any required documents, and submit.
The second option is to apply by submitting all of the needed information, and the lender will contact you to negotiate the loan terms before progressing with the application.
For Offline Visit a Branch: You can apply for a loan by bringing the required documents to your nearest branch, discussing the loan terms with a representative, filling out the application, and submitting it in person.
Make a phone call to the lender: You can either phone the lender or submit a request online.
Dear students, I believe this article will help you a lot. Best of luck.