An education loan is a form of financial support from any bank or financial institution that enable a student for taking higher education. Availability of the education loan, at the appropriate time will help millions of deserving bright young Indians to achieve their dreams come true. All graduation, post-graduation and professional courses from institutes approved by the state and central government and also from foreign universities are eligible for a loan. Several institutes/ colleges have tied up with various banks, for the benefit of prospective students. For studies in India one can get loans up to Rs.7.5 lakh and up to Rs. 15 lakh for studies abroad.
Before giving the loan, banks study the viability of the borrower based on personal discussions with the student, family's assets and annual income, the nature of the course and reputation of the institute. In most banks for loans up to Rs. 4 lakh no collateral or margin is required and the interest rate will not exceed the Prime Lending Rates (PLR). For loans above Rs. 4 lakh the interest rate will be PLR plus 1 percent. PLR is a term used to refer the interest rate of the bank and it may vary with each bank.Some banks offer lower rates to women students or those from specified institutions.Security to the loan depends on the amount. Security is some form of investment (i.e bank deposits, house property etc) that are surrendered to the bank while taking the loan. Security is not needed for loan amounts up to Rs. 4 lakhs. Instead of security, some bank may ask for a third party guarantee ( guarantor) for higher loan amounts. There is no need to repay the loan while studying. The repayment starts after you have finished the course or started working. The repayment cannot be delayed for years after the completion of course. The loans are to be repaid over a period of 5 to 7 years with provision of grace period of one year after completion of studies.
HERE ARE SOME GUIDELINES FOR SOME MAJOR BANKS:
State Bank of India
Education Loan Scheme | Scholar LoansEducation Loan Scheme
Education Loan Scheme | Scholar LoansEducation Loan Scheme
Eligibility : Student
A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.
A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.
Courses
Graduation courses/ Post graduation courses/ Professional courses
Other courses approved by UGC/Government/AICTE etc.
Loan Details
Coverage of Expenses
Fees payable to college/school/hostel
Examination/Library/Laboratory fees
Purchase of Books/Equipment/Instruments/Uniforms
Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course)
Travel Expenses/Passage money for studies abroad
Purchase of computers considered necessary for completion of course
Cost of a Two-wheeler upto Rs. 50,000/-
Any other expenses required to complete the course like study tours, project work etc.
Quantum
For studies in India - maximum Rs. 10 lacs
For studies Abroad - maximum Rs. 20 lacs
Margin
For loans up to Rs.4 lacs - No Margin
For loans above Rs. 4 lacs
- Studies in India - 5%
- Studies abroad - 15%
Security
Upto Rs. 4 lacs - No Security
Above Rs. 4 lacs to Rs. 7.50 lacs - Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower".
Above Rs. 7.50 lacs. - Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments.
All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law
Rate of Interest
Upto Rs.4 lacs - 11.25 % p.a.
Above Rs. 4 lacs and upto Rs.7.50 lacs - 12.75 %
Above Rs.7.50 lacs - 11.75% p.a.
Processing Fees
No processing fee/ upfront charges
Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money
Repayment
Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.
Contact Details
Corporate Centre
State Bank of India,
State Bank Bhawan, 8th floor, Madame Cama Road, Mumbai-400 021
Phone : 022-22029456, 22029451
Fax : 022-22885369
E-mail : Contact Now
Website : visit
State Bank of India Head Offices.
Graduation courses/ Post graduation courses/ Professional courses
Other courses approved by UGC/Government/AICTE etc.
Loan Details
Coverage of Expenses
Fees payable to college/school/hostel
Examination/Library/Laboratory fees
Purchase of Books/Equipment/Instruments/Uniforms
Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course)
Travel Expenses/Passage money for studies abroad
Purchase of computers considered necessary for completion of course
Cost of a Two-wheeler upto Rs. 50,000/-
Any other expenses required to complete the course like study tours, project work etc.
Quantum
For studies in India - maximum Rs. 10 lacs
For studies Abroad - maximum Rs. 20 lacs
Margin
For loans up to Rs.4 lacs - No Margin
For loans above Rs. 4 lacs
- Studies in India - 5%
- Studies abroad - 15%
Security
Upto Rs. 4 lacs - No Security
Above Rs. 4 lacs to Rs. 7.50 lacs - Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower".
Above Rs. 7.50 lacs. - Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments.
All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law
Rate of Interest
Upto Rs.4 lacs - 11.25 % p.a.
Above Rs. 4 lacs and upto Rs.7.50 lacs - 12.75 %
Above Rs.7.50 lacs - 11.75% p.a.
Processing Fees
No processing fee/ upfront charges
Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money
Repayment
Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.
Contact Details
Corporate Centre
State Bank of India,
State Bank Bhawan, 8th floor, Madame Cama Road, Mumbai-400 021
Phone : 022-22029456, 22029451
Fax : 022-22885369
E-mail : Contact Now
Website : visit
State Bank of India Head Offices.
Andhra Bank
Dr Pattabhi Vidya Jyothi Scheme
(Educational loan for study in India and abroad)
Eligibility :
Age
12-30 years for studies in India
18 to 35 years for study in other countries
Loan Details
Coverage of expenses
To meet cost of Tuition fee
Hostel fee
Examination fee
Books
Project work
Study tours
Refundable deposits.
Air Passage and Maintenance, for Abroad Studies
Quantum
Maximum
Rs. 10.00 Lacs for studies in India
Rs. 20.00 Lacs for Studies Abroad
Margin
Upto Rs.4.00 Lacs - Exempted
Above Rs.4.00 Lacs
5% In India
15% for Abroad Studies
Security : Upto Rs.4.00 lacs NIL
Above Rs.4.00 lacs and upto Rs 7.50 lacs Co-obligation of parent/guardian/third party
Above Rs. 7.50 lacs Tangible security of suitable value besides co-obligation of parent.Parent co-obligation and assignment of future income
Mode of Charging Interest
The interest to be debited monthly on simple basis during the repayment- holiday / gestation period.
The accrued interest during the repayment holiday period to be added to the principal and repayment in EMI fixed
Penal Interest: For the loans above Rs. 2.00 lacs penal interest at 2% be charged on the overdue amount for the over due period
Repayment: The loan to be repaid in 5-7 years after commencement of repayment.
Contact Details
Head Office - Andhra Bank
5-9-11, Secretariat Road, Saifabad, Hyderabad-500004
Phone : 040 - 2323 0001
Fax : 2323 4583
Website : visit
Andhra Bank Zonal Offices
Dr Pattabhi Vidya Jyothi Scheme
(Educational loan for study in India and abroad)
Eligibility :
Age
12-30 years for studies in India
18 to 35 years for study in other countries
Loan Details
Coverage of expenses
To meet cost of Tuition fee
Hostel fee
Examination fee
Books
Project work
Study tours
Refundable deposits.
Air Passage and Maintenance, for Abroad Studies
Quantum
Maximum
Rs. 10.00 Lacs for studies in India
Rs. 20.00 Lacs for Studies Abroad
Margin
Upto Rs.4.00 Lacs - Exempted
Above Rs.4.00 Lacs
5% In India
15% for Abroad Studies
Security : Upto Rs.4.00 lacs NIL
Above Rs.4.00 lacs and upto Rs 7.50 lacs Co-obligation of parent/guardian/third party
Above Rs. 7.50 lacs Tangible security of suitable value besides co-obligation of parent.Parent co-obligation and assignment of future income
Mode of Charging Interest
The interest to be debited monthly on simple basis during the repayment- holiday / gestation period.
The accrued interest during the repayment holiday period to be added to the principal and repayment in EMI fixed
Penal Interest: For the loans above Rs. 2.00 lacs penal interest at 2% be charged on the overdue amount for the over due period
Repayment: The loan to be repaid in 5-7 years after commencement of repayment.
Contact Details
Head Office - Andhra Bank
5-9-11, Secretariat Road, Saifabad, Hyderabad-500004
Phone : 040 - 2323 0001
Fax : 2323 4583
Website : visit
Andhra Bank Zonal Offices
Bank of Baroda
For pursuing any type of educational, Bank of Baroda provides four loan options for students. They are :
Baroda Vidya | Baroda Gyan | Baroda Scholar | Baroda Career Development
Baroda Vidya Scheme
Baroda Vidya Scheme is the finance option for parents of students pursuing school education. These loans are available for studies between Nursery and Standard XII.Eligibility :
Should be an Indian national residing in India.
Student should have secured admission to a recognized school / Highschool / Jr. College (including CBSE / ICSE / State Board) for any of the following courses
Stage I : Nursery to V th STD.
Stage II : VI th to VIII STD.
Stage III : IX th to XII th STD.
Evening courses of institutes approved by State/Central Govt.
No minimum qualifying marks required.
Loan Details
Coverage of expenses
Fee payable to college / school.
Examination / Library / Laboratory Fee.
Fee and other charges payable to hostel.
Purchase of books / equipments / instruments / uniforms.
Personal Computers / Laptops wherever required.
Caution deposit / building fund / refundable deposit supported by institution bills / receipts.
Quantum
Maximum Loan Amount : Rs.4.00 Lacs
Security :
No security required.
In case the loan is given for purchase of computer the same is to be hypothecated to the bank.
Zero processing & documentation charges. Zero Margin.
Rate of Interest
Rates of interest charged will be as per Bank's policy on the date of disbursement of loan.
1% concession in rate of interest to loans for girl students.
Simple interest during repayment holiday/moratorium period.
Penal Interest @ 2% on overdue amount if the loan amount exceeds Rs. 2/- lacs.
Repayment
You can repay the loan after moratorium by way of EMI. (Equated Monthly Instalments)
Loan for each yearly sub limit is repayable in 12 equal monthly installments. First installment to be due 12 months after first disbursement of each year's loan component.
Contact Details
Head Offices
Suraj Plaza-1, Sayaji Ganj, Baroda-390005
Phone : (0265) 236 1852 (10lines)
Fax : (0265) 236 2395, 236 1824, 236 1806
Baroda House, P.B. No.506, Mandavi, Baroda-396006
Phone : (0265) 256 3932
Fax : (0265) 256 2445
Corporate Centre
Baroda Corporate Centre,
Plot No - C-26, G - Block, Bandra - Kurla Complex, Bandra (East), Mumbai-400051
Phone :(022) 6698 5000- 04
Fax :(022) 2652 350
Website : visit
Bank of Baroda Zonal Offices
Bank of Baroda Regional Offices
For pursuing any type of educational, Bank of Baroda provides four loan options for students. They are :
Baroda Vidya | Baroda Gyan | Baroda Scholar | Baroda Career Development
Baroda Vidya Scheme
Baroda Vidya Scheme is the finance option for parents of students pursuing school education. These loans are available for studies between Nursery and Standard XII.Eligibility :
Should be an Indian national residing in India.
Student should have secured admission to a recognized school / Highschool / Jr. College (including CBSE / ICSE / State Board) for any of the following courses
Stage I : Nursery to V th STD.
Stage II : VI th to VIII STD.
Stage III : IX th to XII th STD.
Evening courses of institutes approved by State/Central Govt.
No minimum qualifying marks required.
Loan Details
Coverage of expenses
Fee payable to college / school.
Examination / Library / Laboratory Fee.
Fee and other charges payable to hostel.
Purchase of books / equipments / instruments / uniforms.
Personal Computers / Laptops wherever required.
Caution deposit / building fund / refundable deposit supported by institution bills / receipts.
Quantum
Maximum Loan Amount : Rs.4.00 Lacs
Security :
No security required.
In case the loan is given for purchase of computer the same is to be hypothecated to the bank.
Zero processing & documentation charges. Zero Margin.
Rate of Interest
Rates of interest charged will be as per Bank's policy on the date of disbursement of loan.
1% concession in rate of interest to loans for girl students.
Simple interest during repayment holiday/moratorium period.
Penal Interest @ 2% on overdue amount if the loan amount exceeds Rs. 2/- lacs.
Repayment
You can repay the loan after moratorium by way of EMI. (Equated Monthly Instalments)
Loan for each yearly sub limit is repayable in 12 equal monthly installments. First installment to be due 12 months after first disbursement of each year's loan component.
Contact Details
Head Offices
Suraj Plaza-1, Sayaji Ganj, Baroda-390005
Phone : (0265) 236 1852 (10lines)
Fax : (0265) 236 2395, 236 1824, 236 1806
Baroda House, P.B. No.506, Mandavi, Baroda-396006
Phone : (0265) 256 3932
Fax : (0265) 256 2445
Corporate Centre
Baroda Corporate Centre,
Plot No - C-26, G - Block, Bandra - Kurla Complex, Bandra (East), Mumbai-400051
Phone :(022) 6698 5000- 04
Fax :(022) 2652 350
Website : visit
Bank of Baroda Zonal Offices
Bank of Baroda Regional Offices
HDFC Bank
Eligibility :
Student
The applicant should be an Indian National.
He / She should be aged between 16 - 35 yrs.
Courses
Management Courses ( Full-Time + Part Time ) - Post Graduation
Engineering Courses ( Government + Private ) - Graduation
Medicine - Graduation + Post Graduation
Masters in Computer Application ( MCA/MCM) - Post Graduation
Commercial Pilot License courses from Flying Schools approved by DGCA in India or an Equivalent approving body abroad.
Online / Distance Learning courses
Wherever it is a private institution, the same has to be recongized by the relevant/competent government body.
Fine Arts and Designing - Graduation + Post Graduation
Architecture - Graduation
Hotel and Hospitality - Graduation + Post Graduation
Agriculture - Post Graduation
Pure Science - Graduation + Post Graduation
B.A./B.Com/M.A./M.Com
Courses such as SAP , ERP , GNIIT , Air Hostess Training programmes etc.
Besides the above mentioned ,other Institute to be rated on the basis of their listing with the AICTE etc
Loan Details
Coverage of expenses
Fee Payable to College/ School/ Hostel
Exam/ Library /Lab fees
Caution deposit / Refundable deposit asked by the institution/ Building fund - supported by Institution bills/ receipts
Purchase of Books/ equipments/ instrument/ uniforms
Travel expenses/ passage money for studies abroad
Purchase of computers - essential for completion of the course
Any other expense required to complete the course - like study tours, project work, thesis, etc.
Quantum
Studies in India - Max Rs. 15 Lakhs
Studies in Abroad - Max Rs. 20 Lakhs
Margin
Upto Rs.4 lakhs - Nil
Above Rs.4 lakhs
- Studies in India 5%
- Studies abroad 15%
A co-applicant is required for all Full-Time courses . The co-applicant can be your parents, siblings, spouse or Family Relative . Loan eligibility would be calculated on the basis of the co-applicant's income. In case of Part Time courses , No Co-applicant required . However in order to increase the eligibility a co-applicant may be added .
Security
Collaterals are required only for educational Loans above Rs.7.5 lakhs. The acceptable collaterals are:
Fixed deposits
Property (Residential)
Documents Required
Progress reports to be provided at the time of every disbursement tranch. Progress report includes mark sheets or a letter from the Institute, in case the mark sheet are not available while processing the fresh disbursement tranch.
The following documents have to be submitted post the sanction of the loan
Education Loan Agreement
SI/ECS Mandate as applicable
Post Dated Security Cheques as per Policy
Any other documents which might be required as per policy.
Declaration/Affidavit confirming that no loan has been availed from other Bank/Institution
Completely filled Application Form with Photographs.
Letter of admission from the Institute
Letter from the Institute stating cost break up of the program (term-wise, year-wise)
Marksheets from SSC onwards till the latest examination passed
KYC Documents for the Applicant & Co-applicant (Residence Proof , ID Proof , Signature Verfication Proof , Age proof )
Income Documents of the Co-applicant ( Pay Slips / ITR copy etc )
Declaration/Affidavit confirming that no loan has been availed from other Bank/Institution
For studies abroad - In addition to the above list of documents – Pls Provide :
Letter from the Head Of Department ( University)
Visa approval papers
Travel papers
GMAT/GRE/SAT score
I-20 in case of applicant going to the USA
Rate of Interest
As per bank rules
Repayment
Maximum tenure of the loan can be 7 years including moratarium period.
Repayment holiday/ moratorium would be for the course period + 1 year or 6 months after the student gets a job/start earning whichever is earlier.
Interest would have to be paid during the moratorium, the interest servicing would be of simple interest calculated on the loan amount disbursed payable monthly.
Contact Details
HDFC Bank
Head Office : Ramon House, 169, Backbay Reclamation, H T Parekh Marg, Churchgate, Mumbai - 400 020.
Telephone No. : +91 (22) 66316000
Fax No.: +91 (22) 22048834
Website : visit
Eligibility :
Student
The applicant should be an Indian National.
He / She should be aged between 16 - 35 yrs.
Courses
Management Courses ( Full-Time + Part Time ) - Post Graduation
Engineering Courses ( Government + Private ) - Graduation
Medicine - Graduation + Post Graduation
Masters in Computer Application ( MCA/MCM) - Post Graduation
Commercial Pilot License courses from Flying Schools approved by DGCA in India or an Equivalent approving body abroad.
Online / Distance Learning courses
Wherever it is a private institution, the same has to be recongized by the relevant/competent government body.
Fine Arts and Designing - Graduation + Post Graduation
Architecture - Graduation
Hotel and Hospitality - Graduation + Post Graduation
Agriculture - Post Graduation
Pure Science - Graduation + Post Graduation
B.A./B.Com/M.A./M.Com
Courses such as SAP , ERP , GNIIT , Air Hostess Training programmes etc.
Besides the above mentioned ,other Institute to be rated on the basis of their listing with the AICTE etc
Loan Details
Coverage of expenses
Fee Payable to College/ School/ Hostel
Exam/ Library /Lab fees
Caution deposit / Refundable deposit asked by the institution/ Building fund - supported by Institution bills/ receipts
Purchase of Books/ equipments/ instrument/ uniforms
Travel expenses/ passage money for studies abroad
Purchase of computers - essential for completion of the course
Any other expense required to complete the course - like study tours, project work, thesis, etc.
Quantum
Studies in India - Max Rs. 15 Lakhs
Studies in Abroad - Max Rs. 20 Lakhs
Margin
Upto Rs.4 lakhs - Nil
Above Rs.4 lakhs
- Studies in India 5%
- Studies abroad 15%
A co-applicant is required for all Full-Time courses . The co-applicant can be your parents, siblings, spouse or Family Relative . Loan eligibility would be calculated on the basis of the co-applicant's income. In case of Part Time courses , No Co-applicant required . However in order to increase the eligibility a co-applicant may be added .
Security
Collaterals are required only for educational Loans above Rs.7.5 lakhs. The acceptable collaterals are:
Fixed deposits
Property (Residential)
Documents Required
Progress reports to be provided at the time of every disbursement tranch. Progress report includes mark sheets or a letter from the Institute, in case the mark sheet are not available while processing the fresh disbursement tranch.
The following documents have to be submitted post the sanction of the loan
Education Loan Agreement
SI/ECS Mandate as applicable
Post Dated Security Cheques as per Policy
Any other documents which might be required as per policy.
Declaration/Affidavit confirming that no loan has been availed from other Bank/Institution
Completely filled Application Form with Photographs.
Letter of admission from the Institute
Letter from the Institute stating cost break up of the program (term-wise, year-wise)
Marksheets from SSC onwards till the latest examination passed
KYC Documents for the Applicant & Co-applicant (Residence Proof , ID Proof , Signature Verfication Proof , Age proof )
Income Documents of the Co-applicant ( Pay Slips / ITR copy etc )
Declaration/Affidavit confirming that no loan has been availed from other Bank/Institution
For studies abroad - In addition to the above list of documents – Pls Provide :
Letter from the Head Of Department ( University)
Visa approval papers
Travel papers
GMAT/GRE/SAT score
I-20 in case of applicant going to the USA
Rate of Interest
As per bank rules
Repayment
Maximum tenure of the loan can be 7 years including moratarium period.
Repayment holiday/ moratorium would be for the course period + 1 year or 6 months after the student gets a job/start earning whichever is earlier.
Interest would have to be paid during the moratorium, the interest servicing would be of simple interest calculated on the loan amount disbursed payable monthly.
Contact Details
HDFC Bank
Head Office : Ramon House, 169, Backbay Reclamation, H T Parekh Marg, Churchgate, Mumbai - 400 020.
Telephone No. : +91 (22) 66316000
Fax No.: +91 (22) 22048834
Website : visit
