Educational loans

Educational loans have enabled students to pursue their studies without any financial worries.

Till some years back higher education and quality education were not affordable to one and all because of the financial constraints. Scholarships were there but very lucky students could avail them. Today, with the help of banks large sums of funds are being released for educational loans. Educational loans are so easily available today from various banks across India that this change is encouraging more and more students to take up higher education despite their financial shortcomings. Many nationalized banks have also come up with various educational loan schemes from which the students can benefit. Even private banks are not lagging behind and thus providing opportunities to the aspirants who want to study abroad or with any premier institute within India.

While taking an educational loan, one should have knowledge regarding the various loans being offered by different banks. Students must also know the difference between graduate loans and under graduate loan programs and thus opt for the loans that suit their requirements and benefits them more. While applying for loans, those which have easy accessibility should be given prime preference. Taking an educational loan should not be considered a burden and that’s why the Indian banks have come up with flexible student loan schemes namely educational loans and scholar loans. Educational loans are usually for graduation, post-graduation, doctorate, and post doctorate and for other professional courses. Very limited banks in India SBI being the main offer scholar loans.

SBI Study Loans are sanctioned only to Indian nationals. A study loan is sanctioned for studies both in India and abroad. SBI sanctions a loan of maximum Rs 10 lakh for studying in India and Rs 20 lakh for studying in abroad. On a loan above Rs 4 lakh, there is a margin of 5% and 15% for studying in India and abroad respectively.

SBI charges a very small rate of interest. Its branches are within reach and all the branches are authorized to accept the loans thus making it easier for students to apply for loans. We have seen a quantum jump in the number of students who avail of the loan.

Banks like HDFC provide student loans for un-graduate and postgraduate courses in the fields of management, engineering, medicine, computer applications, fine arts and designing, hotel and hospitality, architecture and pure science.

The other courses eligible for loans are distance learning programs, air hostess training courses, SAP, GNITT and ERP. The institutes should be recognized by competent government body or even by AICTE.

Candidates willing to apply for HDFC Bank education loan should be Indian nationals and applicants between 16-35 years of age.

Generally, the maximum amount of education loan offered by banks for studies in India id Rs 10 lakh and for studies in abroad it is Rs 20 lakh. Other banks like Allahabad Bank, Punjab National Bank, IDBI, Syndicate Bank, Federal bank and many more offer educational loans for the students who are willing to carry on with their higher studies.

The product features – quantum of loan, interest rate, coverage, etc – are almost same across the banks. The advantage with however, is flexibility in moratorium, tenor of the loan and margin on the loan. They also give loans for meeting expenses required to complete the course like study tours, project work thesis and the like.

The student applying for a loan has to submit proof of admission to the course, which he/she wants to pursue and other relevant documents. The formalities are simple to complete. The loan covers fees (tuition, library, laboratory, hostel ) payable; expenses on account of purchase of books, equipments, computer, meeting travel expenses (for studies abroad). With the education becoming highly specialized and costly and the younger population on an increase, there is a good prospect for banks extending education loans.

With most financial institutions out there to provide students with necessary financial help, there is no stopping the deserving and determined.