Education Loans

Students Persuing Higher Education in India and Abroad don’t have to struggle hard anymore to finance their Studies. Now many Banks in India are providing Education loans in a scale never happened before.

CareerMarg is tied up with Credila for students loans

What is Credila

  • Credila is a Non Bank Finance Company
  • Credila is the only lender which is exclusively focused on Education Loans
  • Credila is a Subsidiary of HDFC Ltd.
  • Over 90,000 students & parents have already applied to Credila
  • Credila has already funded students studying abroad

Highlights

  • Get tax benefits under Section 80(E) of Income Tax Act of India
  • Education Loan Home Delivered!
  • Flexible choices of repayment terms
  • Loan up to 100% of educational expenses. No margin money required.
  • Flexibility on collateral security
  • Loan sanction before admission
  • Multi city co-borrowers accepted
  • Web enabled billing & servicing

Tips to note in applying for an education loan

Ideally, take a loan from a bank located at your place of study than one located where you reside, unless it concerns overseas studies. This is because you will have better access to funds if you take a loan from the place of your study. Secondly, Make sure the repayment period starts only after six to twelve months after you begin your working life. And thirdly, Banks typically prefer to finance students who opt for traditional courses.

For What Professional Courses do Banks generally provide education loans ?

Management students are among the top choices for most of the banks. Technology students from the country’s premier institutions can also get student loans from Banks and Medical and engineering college students. Banks don’t provide loans for students with a bachelor’s/master’s in Arts . Also, for courses where employment prospects are less (as per Bank’s own evaluation), loans are sanctioned on the basis of the parents’ income.

How much Loan you can get ?

Loan for Studies in India Most of the Public Sector Banks in India have categorized Student Loans in two categories. For Studies in India , Students can borrow up to Rs 4 lakh without providing any security or margin. A loan amount of Rs 4 lakhs to Rs 7.5 lakhs can be availed against a third-party guarantee. This loan comes with a five percent margin (what this means is that you will get five percent less the amount sanctioned as loan; you will have to put together the rest of the money). The third-party guarantee can come from an uncle, neighbor or friend standing guarantee for the full amount.

Overseas study loans : Amounts worth Rs 7 lakhs and above are usually sanctioned against fixed deposits, NSC certificates, property worth the loan amount and a margin amount of 15 percent (what this means, again, is that you will get 15 percent less the amount sanctioned as loan; you will have to put together the rest of the money). Also, if a loan below Rs 4 lakhs comes at x rate of interest, the loan over Rs 4 lakhs is usually charged one percent higher interest. The Reserve Bank of India prescribes the specifics (amount, rate, repayment period) of education loans and the government provides a two per cent subsidy on these loans to the banks.

 Repayment – Course period + 1 year or 6 months after getting job, whichever is earlier.

What are the Documents required for applying a Student Loan ?

All students are required to submit mark sheets of last qualifying examination, proof of admission scholarship, schedule of expenses for the specified course, his/her bank account statement for the last six months, an income tax assessment order for the previous two years, a brief statement of assets and liabilities, of the co-borrower, which is usually the parent or guardian and proof of income, if any.

Some banks require all or any of the following documents as pre sanction documents:To furnish the following documents along with the completed application form.
Relevant information would relate to the guardian and the student both, when the loan is jointly taken.

1)Mark sheet of last qualifying examination for school and graduate studies in India
2)Proof of admission to the course
3)Schedule of expenses for the course
4)Copies of letter confirming scholarship, etc.
5)Copies of foreign exchange permit, if applicable.
6) 2 passport size photographs
7) Statement of Bank account for the last six months of borrower.
8.) Income tax assessment order not more than 2 years old
9) Brief statement of assets and liabilities of borrower.
10)If you are not an existing bank customer you would also need to establish your identity and give proof of residence.

Eligibility for getting a loan:

The applicant should be an India National
The applicant must have secured admission to professional/ technical courses through Entrance Test/    Selection process
Secured admission to foreign university/ Institution

Which Banks are offering Education Loans in India ?

Most of the Private Sector banks, Foreign Banks and Public Sector Banks in India are providing Student Loans. Below given are some of the main banks which have flexible Education loan schemes.

Andhra Bank
Allahabad Bank
Axis Bank
Bank of Baroda
Bank Of India
Bank of Maharashtra
Bank of Punjab
Bank of Rajasthan
Bassein Catholic Bank
Bharat Overseas Bank
Canara Bank
Catholic Syrian Bank
Central Bank of India
Centurion Bank of Punjab
Citi Bank
City Union Bank
Corporation Bank
Dena Bank
Development Credit Bank
Dhanalakshmi Bank
Federal Bank
HDFC Bank
HSBC
ICICI Bank
Indian Bank
Indian Overseas Bank
IDBI Bank
ING Vysya Bank
Jammu & Kashmir Bank
Karnataka Bank
Karur Vyasa Bank
Lakshmi Vilas Bank
Oriental Bank of Commerce
Punjab & Sind Bank
Punjab National Bank
Ratnakar Bank
Saraswat Bank
SBI Commercial and International Bank
South Indian Bank
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of India (SBI)
State Bank of Indore
State Bank of Mysore
State Bank of Patiala
State Bank of Saurashtra
State Bank of Travancore
Syndicate Bank
Tamilnad Mercantile Bank Ltd
Thane Janata Sahakari Bank
UCO Bank
Union Bank of India
United Bank of India
United Western Bank