Education Loan: Application Process, Online Degree, Emi And Interest

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As the name suggests, an education loan is the amount that has been borrowed to complete one’s education. The need of education loan generally arises when an individual wish to pursue his/her higher Education. This is because the course fee for higher education is really expensive and difficult to pay for everyone.

So, the problem of funding is something with which every student deals with nowadays. The solution to this problem is getting loan from private/government bank or universities that offers various financing option like fee submission in many instalments.

Why Education Loan?

Repayment of Loan is easy: - The banks provide reasonable interest rates & loan schemes making it easy to repay the loan which helps the students to easily repay the loan.
Financial Advantages: - The students can pay the fee in instalments and they don’t need to pay all the fees in one stroke. It provides a sense of convenience to the students.
No hustle in fee Payment: - If a student opts for education loan, then the students don’t have to pay all the course in one stroke. According to the budget and criteria of an individual, the students can pay their fees while pursuing the course or after the completion of their course in easy EMI’s of 12 months or 24 months depending on the EMI option chosen by a specific student.
An array of Expenses covered: - Students are provided with not only the tuition fees but also with the living, travel expenses, laptop allowance and study materials. It makes it easy for the students to sustain after taking loan for their entire course.
A sense of Self-Pride: - Students who opts for education loan carry the burden of their expenses on their own shoulders. It makes them feel proud of themselves that they freed their parents from their course fee and expenses.

College	Course	Fee
IIM Ahmedabad	MBA	24.5 lacs
IIT Kharagpur	BE/BTECH	3-4 lacs
IIFT	MBA	16-18 lacs
Symbiosis institute of Business Management	MBA	16-17 lacs
IIT Kanpur	BE/BTECH	3-4 lacs
IIT DELHI	BE/BTECH	8-9 lacs
IMT Ghaziabad	PGDM	10-12 lacs

Is Education loan also available for Online Programs:

Yes, Education loan is available even for online programs but there are some rules and regulations for it like
No moratorium period is available in case of online program.
As per some banks, minimum qualification for online program education loan is to be a graduate.
Some banks also require eligibility that the applicant for online program must be a working professional.

Course	Total Loan Amount	Monthly EMI’s
MBA	149500	6229
BBA	119500	4979
M COM	99500	4146
ONLINE BCOM	79500	3313
ONLINE MCA	149500	6229
ONLINE BCA	119500	4979

The above table is fee structure for online courses designed to help students pursue professional course and the monthly EMI is affordable.

BANK	LOAN AMOUNT	INTEREST RATE	OTHER SPECIFICATION
SBI	UPTO 7.5 LACS	0.109	Loan repayment must be done after one year of completion of course
PNB	As per applicants need	10.25	No guarantor required for loan up to 7.5 lacs
Axis bank	Minimum 50,000	8-16%	Loan can be repaid in 20 years
Bank of Baroda	1.5 crore	5-15%	No guarantor required up to 7.5 lacs loan
Hdfc	1.5 crore	9.55-13.25%	Maximum tenure for repayment of loan is 15 years

These are some of the banks offering education loan to all the students. So, there is no need to worry about funding for your education. You can easily apply for loan and enrol yourself in your favourite course. You will get enough time for the repayment of your loan. A thorough research shall be done before you apply for a loan for your education. Some banks have a very strict and stringent rules and regulations and repayment of loan becomes quite a tough task within the stipulated time. For instance, SBI has a rule that you must pay your education loan after one year of completion of your course which is indeed a challenging task. If you fail to meet their expectation then the bankers start constantly calling you and torturing you. Beyond a point the bankers also start threatening you to cease your documents or to take your property in case you had submitted a collateral for your education loan. However, there are a lot of banks which gives you enough tenure to pay back the loan amount.

The education loan has its own share of pros and cons. The cons are limited but the pros are a lot. In most of the cases, the education loan turns out to be a very good decision for the students as they get their placements or job and that makes them sufficient to pay the loan. Adversities are bound to happen in every decision that you take but if you focus on the positive side of even the negative circumstances then it turns out to be really helpful for any individual person. All the necessary things like living and travelling cost, Books and laptops are all provided to the students by the bank. If a candidate is solemn and focussed towards their goal then education loan makes the journey of the student limitless.

A lot of students get scared of the norms, rules and regulations of the banks for education loan. They start to foresee only the negative side of taking education loan and this stops them from pursuing their higher education. Rather than focussing on the negative aspect of taking education loan, the students should see the positive aspect of it and if they work hard then they would definitely be able to complete their education and also repay their loan from their own earnings. Going for a bank with a lenient rules and banks which charges less interest rates would be the best decision for the student to emerge victorious in life

Education Loan Eligibility

AGE Bracket: - The candidate must be in the age group of 18 to 35 failing which will make you unfit for getting the loan.
Indian Resident: - The candidate must be a resident of India. The candidate can submit any government ID as proof of them being an Indian citizen
Admission Confirmation: - The admission must be confirmed by the college in which you are going to enrol yourself
Approved College: - The college in which you are taking admission must be approved by UGC (university grant commission) or AICTE (All India council of Technical Education)
Academic Record: - If the academic record of a candidate is good then they will get loan instantly without any ruckus
Guarantor: - A co-applicant or guarantor is required who should be a working professional. A co-applicant can be anyone like parents/spouse/guardians/in laws in case of a married candidate.

All the above criteria are compulsory for getting your loan sanctioned by the bank.

Documents Required for Education Loan: -

Application form filled up by the candidate
Passport size photograph
10th and 12th marksheet
Aadhar card and pan card
A detailed summary of expenses of course
Age proof like Aadhar or pan card or voter ID/passport
Residence proof like copy of electricity bill or passport or rental agreements
Last 3 months salary slips and 6 months of bank statements
Last 12 months ITR records

Education Loan Application Process:

Research and Consulting: - One shall cross check which bank offers loan at what percentage of interest rates. After a thorough researching and consultation, they can decide which bank will be convenient for them.
Application Form: - Fill out the application form either on the bank’s website or offline.
Verification Check: - The loan agent will contact you for the loan and cross check your details that you filled in your application form
Submission of Documents: - The next process is to submit your documents to the bank as the bank calls you for submitting the documents. One is advised to take along someone experienced to understand the loan procedure utterly.
Approval of Loan: - After the successful verification check, the bank approves the loan of the candidate if the candidate fulfils all the criteria’s for getting the loan sanctioned.
Loan Amount Deposited: - After successful approval of the Loan the bank transfers the loan amount directly to the colleges bank account or to the student’s bank account. It completely depends on the requirement of the student at the time of filling the form of education Loan

Factors Considered by Lenders while approving the loan: -

Educational Institute and course: - First of all the bank sees in which institute the loan applicant wants to get enrolled and also the course in which he/she wants to get admission.
Loan Amount: - The next in the queue is the amount of the loan that an individual wants. The bank checks whether it can provide the amount demanded by the lender or not.
Academic Performance: - The bank also checks on the academic performance of the candidate. If it is impressive then the bank gives it a green signal.
Repayment Capability: - The bank checks the individual’s or individual’s family capability to repay the loan as it is about trust that the bank needs to have in the applicant.
Security Assets: - The security assets or family assets are also taken into consideration while sanctioning the loan amount to any applicant.
Annual Income: - The annual income of the family is also considered for approval of loan to a candidate
All the above factors are significant to be considered while loan approval otherwise the candidate faces problem in future in repaying the loan.

Education Loan Repayment Process:

The process of repayment of education loan is very simple.

Net Banking: - The candidate can repay the loan via net banking by simply transferring the loan amount to the bank’s website.
Direct Cheque: - One can submit cheque directly in the bank’s account by visiting the nearest branch of the bank.
Debt from individual account directly: - You can set up a feature so that your EMI amount is directly debited every month after a fixed interval.
Demand Draft: - You can make a demand draft to pay your EMI

Top Online University provides Loan on Zero cost EMI

Manipal University: - Manipal university provides loan for online courses at zero cost EMI. The placements provided by Manipal university is quite impressive. Settle your career by applying for online Education loan. Don’t let your dream be a dream just because of not having enough money.

LPU: - LPU also provides online education loan at zero cost EMI. LPU has a very nice past records for the placement post the completion of course from the university. LPU is a good option to opt for online education

Jain University: - Jain university provides online education loan at zero cost Emi. The placement record of Ju is exemplary. Get enrolled to Jain university and fulfil your aspirations.

DY Patil University: - It offers online education loan at zero cost EMI. It is one of the best universities in Pune. The prior placement record is also exceptional. Make your dream a reality by enrolling at DY Patil University.

Amity University: - Amity university offers online education loan at zero cost EMI. It is India’s one of the best private universities. The placement record is also good. Change your vision into your achievements by applying for your dream course.

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