How can you Get Educational Loans for Higher Studies in India?
Educational Loans a parallel support system to students and parents for Higher Studies in India. Dreams fulfillment was never easier than now, engineering students can limitlessly obtain education, and burden on parents reduced with special schemes by Government and Banks. Simplified procedures, affordable rates, deferred EMIs till completion of education and many such facilities encourage the students for further studies.
Government of India has framed a Comprehensive Educational Loan Scheme developed jointly with Reserve Bank of India (RBI) and Indian Bankers’ Association (IBA) for bright future of academically strong students who did not receive scholarships.
Criteria of Loan Eligibility
- Indian Citizen
- Student age above 18 or parent can apply for loan
- Full time course
- Good academic record
- Admission confirmation
- Income Proof of co-applicant
Documents required for education loan
- Filled loan application form
- Passport size photographs of the applicant and co-applicant
- Photo ID of the applicant and co-applicant e.g. Aadhar card, PAN card
- Residence proof e.g. Electricity Bill, Property Tax Bill
- Applicant’s Certificates & Mark sheets
- Admission letter issued by university
- Income proof & bank statements of co-applicant
Various Educational Loan Schemes
(100% reimbursement of interest paid against education loan EMIs *conditions of income)
- Central Sector Subsidy Scheme (CSIS) by Ministry of Human Resource and Development: For economically weaker sections to enroll in technical & professional courses in India, subsidies for yearly income limit of family below or equal 4.5 lakhs.
- Padho Pradesh Central Scheme of Interest Subsidy for Minorities by Ministry of Minority Affairs: For students of minority communities like Jain, Parsi etc. to study abroad subsidy for family income upto 6 lakhs per annum
- Dr. Ambedkar Central Scheme of Interest Subsidy on Education Loan for Overseas studies for OBC & EBC (Economically Backward Classes) by Ministry of Social Justice and Empowerment: To pursue education abroad, family income limit; for OBC upto 3 lakhs and EBC 1 lakh per annum
Banks offering Educational Loan and subsidies
- Andhra Bank
- Bank of Baroda – 0.5% concession in interest rate on loan for girl’s education
- Bank of India- 0.5% concession in interest rate on loan for girl’s education
- Canara Bank – 0.5% concession in interest rate on loan for girl’s education
- Central Bank of India
- Corporation Bank
- ICICI Bank- 0.5% concession in interest rate on loan for girl’s education
- Indian Overseas Bank
- State Bank of India – 0.5% concession in interest rate on loan for girl’s education
- State Bank of Hyderabad
- State Bank of Mysore
- Other banks
Rising educational expenses is mainly the reason for increasing popularity of educational loans. They cover the tuition fees, text books, and stationery, electronic gadgets required for studies, examination fees, accommodation, travelling expenses, etc.
Primary responsibility of educational loan repayment belongs to student, penalties attached to breach of agreement.
Concluding the educational loans, selection of scheme, requirement of loan, interest rate and repayment clauses and relaxation applicable are deciding factors.