Getting an education loan in India is a must for attending college, particularly in light of the expensive living and tuition costs. Several banks and other financial institutions in India offer education loans to fulfil different needs. This article provides a comprehensive overview of the top education loans in India for 2024. It offers helpful information on interest rates, payback terms, and the coverage of different expenses. It is essential to understand your loan options, regardless of whether you want to study in India or anywhere else. By making an informed decision, you will be empowered to confidently pursue your academic goals after reading this material.
Education Loan: Key Advantages
• Financial Accessibility: Education loans allow a more comprehensive range of students to obtain a quality education by covering expenses such as tuition fees, books, equipment, and living costs.
• Competitive Interest Rates: Education loans from banks often come with lower interest rates than personal loans, making them a more affordable choice for borrowing money.
• Flexible Repayment Options: Students can repay the loan or take advantage of a grace period after completing their studies.
• Tax Benefits: Under Section 80E of the Income Tax Act, 1961, one can claim a tax deduction on education loan interest.
• Credit Building: Repaying an education loan is essential to building a solid credit history, significantly benefiting your future financial endeavours.
Documents Required for Education Loan
• KYC Documents: Identity proof (PAN card or Aadhaar card).
• Address proof.
• Academic Records: Mark sheets and passing certificates.
• Check with a bank or financial institution for additional documents.
Education Loan Eligibility Criteria in India
• Indian Citizenship: Applicant must be an Indian citizen.
• Academic Performance: Good academic record, including a minimum of 50% marks in HSC and graduation.
• Admission to Recognized Institutions: Secured admission to higher education courses in India or abroad through entrance tests or merit-based selection processes.
• Approved Courses: Covers courses leading to graduate or postgraduate degrees and PG diplomas from recognised colleges or universities.
• Check specific eligibility criteria of the bank or financial institution.
State Bank of India (SBI) Education Loan Schemes Overview
• SBI Student Loan Scheme: A term loan is accessible to Indian people studying abroad or in India for higher education. We do not require processing fees or advance payments.
• SBI Global Ed-vantage Scheme: Students studying abroad have a complete answer. It gives you peace of mind by covering tuition, living expenses, and associated charges with flexible repayment choices and affordable interest rates.
• SBI Scholar Loan Scheme: A trustworthy funder of India’s higher education system. It empowers you to achieve your educational aspirations by providing various repayment choices and low interest rates.
• SBI Shaurya Education Loan: Explicitly designed to help cover the costs of approved courses, this loan is available to armed forces members and their families.
• SBI Takeover of Education Loan: Students can refinance their existing student loans with SBI.
Punjab National Bank (PNB) Education Loan Schemes Overview
• PNB Saraswati: Comprehensive program that includes coverage for tuition fees, living expenses, and other associated costs.
• PNB Pratibha: Education loans with no collateral are available for students admitted to 103 prestigious institutions in India at reduced interest rates.
• PNB Udaan: Geared towards students seeking to further their education overseas.
• PNB Kaushal: Emphasizes the importance of vocational education and training, making it an excellent choice for skill development courses.
• PNB Pravasi Shiksha Loan: Explicitly created for individuals residing in India, individuals of Indian descent, and students born outside India.
• PNB PM Cares Education Loan Scheme: An extensive support system that offers care and protection to children who have tragically lost their parents to the COVID pandemic, guaranteeing uninterrupted education for them.
• PNB Honhaar: A program that promotes higher education and skill development courses in Delhi, nurturing local talent and fostering growth.
Axis Bank Education Loan Schemes Overview
• Loans starting from ₹50,000 are available to cover a range of expenses, including tuition fees, hostel charges, book costs, and related expenses.
• There are a variety of interest rates to choose from, including Repo Rate-linked rates, which are pretty competitive.
• Pre-admission approval letter to ensure a seamless transition into your educational journey.
• Education loans up to ₹4,00,000 do not require any margin.
• The curriculum covers topics relevant to potential engineering, business, and medicine careers.
• Loan disbursal is guaranteed within 15 working days of submitting your application.
• The parent or guardian is considered the principal debtor and a co-applicant.
• A LIC policy with an insured sum equal to or higher than the loan amount, collateral, or a third-party guarantee are all possible security criteria.
HDFC Bank Education Loan Schemes Overview
• Loan Amount and Repayment Tenure: You can get funding of up to ₹10,00,000 for both full-time and part-time courses.
• Repayment Tenure: Up to 15 years.
• “Moratorium”: Deferred repayments are available during the study period.
• Interest Rates and Processing: Attractive interest rates.
• Direct disbursement to educational institutions based on fee structure.
• Collateral Options: Choice from residential property, HDFC Bank fixed deposit, debt mutual funds, insurance policies, NSC/KVP.
• Insurance: “Credit Protect” from HDFC Life.
• Eligibility: Students from India between the ages of 16 and 35.
• Online applications are available for education loans up to ₹10 lakh within India.
Bank of Baroda Education Loan Schemes Overview
• Baroda Vidya Loan: Offers up to ₹4 lakhs for education at accredited schools.
• Baroda Gyan is perfect for Indian students currently enrolled in undergraduate, postgraduate, or professional programs in India.
• Baroda Scholar: Supports MBA, MCA, and MS courses to promote job creation.
• Baroda Education Loan to Students of Premier Institutions: Available for Indian nationals admitted to premier educational institutions.
• Skill Loan Scheme: Designed for technical courses.
• Vidya Lakshmi Portal: An online platform designed to assist students in finding education loans.
• Government of India Interest Subsidy Schemes for Education Loan: Students who meet the requirements can apply for loan subsidies.
• Baroda Education Loan for EDP (Executive Development Programme): This loan is for a maximum of ₹20 lakhs.
ICICI Bank Education Loan Schemes Overview
• Loan Amount: Up to ₹2 crore for international studies and up to ₹1 crore for domestic studies.
• Special Offerings: These are designed specifically for government workers, chief executive officers, and professionals with at least two years of relevant experience.
• Interest Rates: Linked to the REPO rate, up to ₹1 crore for courses in India and up to ₹2 crore for courses abroad.
• Eligibility Criteria: Indian nationality, good academic record, admission to recognised institutes.
• Co-borrower Options: Father, mother, brother, sister, spouse, grandparents, or parents-in-law.
• Application Process: Visit the nearest ICICI Bank branch or apply online.
• Covered courses: Provides a variety of graduate and undergraduate degree programs.
• Pre-approved Education Loan: Quickly determine whether you qualify for immediate approval with ICICI Bank.
Canara Bank Education Loan Schemes Overview
• IBA Model Education Loan Scheme: Offers a range of repayment alternatives and competitive interest rates.
• Vidya Sahay: Various academic levels and fields may apply for available financial aid.
• Vidya Turant: Effortless loans available for top-tier institutions.
• IBA Skill Loan Scheme: Supports the development of valuable skills and boosts employability.
• Vidya Shakthi: Geared towards individuals seeking to pursue master’s degrees.
• Canara Bank’s official website has further details and may help you determine whether you qualify.
Kotak Mahindra Bank Education Loan Schemes Overview
• Offers loans up to ₹20 lakhs for higher education in India or abroad.
• Income and repayment capabilities determine the amount of the loan.
• Provides quick approval and minimal documentation.
• Offers reasonable interest rates for education financing.
• Eligibility criteria include Indian nationals aged 16 to 35, good academic record, and confirmed admission to recognised institutions.
• For more information on interest rates and qualifying conditions, see the official website of Kotak Bank.
Central Bank of India Education Loan Schemes Overview
• Provides education loans for both domestic and international higher education.
• Loan limit: Up to ₹20 lakhs.
• Maximum repayment period: 15 years.
• No processing fees or prepayment penalties.
• Interest rates vary based on approved institutions.
• Eligibility: Admission to recognised institutions.
• Results of the merit-based selection or entrance test.
• Admission examinations are solely based on marks, with a minimum requirement of 50%.
IDBI Bank Education Loan Schemes Overview
• Offers loans up to ₹10 lakhs to eligible students.
• A competitive interest rate of 9.10% ensures affordable repayments.
• The application process is straightforward and hassle-free.
• Provides financial support for students studying in India or abroad.
Conclusion
When selecting an education loan in India, it’s essential to carefully analyse factors, including interest rates, repayment terms, and cost coverage. It’s critical to carefully review the loans provided by many Indian banks to choose which one best satisfies your needs in terms of finances and education. This article thoroughly evaluates the finest education loans accessible in India in 2024, which will help you locate the most significant financial assistance for your education. Once you have the best education loan in India to assist you in reaching your goals, you can confidently begin your college adventure.
