The government of India has launched several schemes to encourage women to study which can provide financial aid. Hence, several banks in India aim to provide financial assistance to the girl child either in the form of concession on interest rates or in the form of specifically designed schemes for the girl child. The education loans by such banks are provided under the IBA Model Education Loan Scheme.
In this blog, we will be covering the top education loans for girl students in India with their features and benefits. Also, check out the application procedure and the documents required for the same.
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Top Education Loans for Girl Students in India
There are several banks and financial institutions that provides education loans for girl students in India. The terms and conditions may vary from bank to bank. Some of the banks also have specifically designed education loan schemes for the girl child. Check out the top education loans for girl students in India.
Cent Vidyarthi Loan Scheme
Cent Vidyarthi loan scheme is offered by the Central Bank of India to provide financial assistance to eligible students for higher education. A loan amount of INR 10 Lakh is given to students who want to study in India whereas an amount of INR 20 Lakh is given to students planning to study abroad. With the exchange of 100% collateral security, there is no bar for the maximum amount of loan. The loan covers the course fees and other related expenses like purchasing books and laptops, examination fees, hostel fees, etc. that help in completing the course. The bank offers 0.5% more concession in the interest rates specifically for the girl child.
Did You Know? Major public and private sector banks like the State Bank of India, Bank of Baroda, Punjab National Bank, IDBI Bank, Indian Overseas Bank, Central Bank of India, ICICI Bank, Canara Bank, South Indian Bank, Bank of Maharashtra, UCO Bank, YES Bank are the banks that provide 0.5% concession on interest of education loan for girl students in India.
Baroda Scholar and Baroda Gyan Loan
Baroda Scholar and Baroda Gyan Loan are education loans for girl students in India provided by the Bank of Baroda. Under these two loan schemes of the Bank of Baroda, the girl child can avail up to INR 7.5 lakhs for graduation and post-graduation while under the Baroda scholar scheme, the students can avail loan up to 80 lakhs for studies in India or abroad. In both cases, the additional 0.5% concession is provided in the interest rate and this benefit is only for girl students.
Also Read: Bank of Baroda also provides forex cards for students who are planning to study abroad. To know about the benefits and uses read Bank of Baroda Forex Card: Benefits, Uses, Charges.
Vidhya Jyoti – Indian Overseas Bank
This education loan for girl students in India is provided by the Indian Overseas Bank. This is specifically for aspiring students who want to study abroad at a foreign university. Students can avail up to 50 lakhs and the minimum amount is INR 7.5 lakhs. The bank also implements 15% margin money for study abroad loans under the Vidyajyothi scheme. The IOB Vidyajyoti Education Loan Interest Rate is between 9.75% to 11%.
Also Read: Applying for a loan from IOB? Check this and know about the IOB Education Loan Documents Required
Corp Vidya Scheme – Corporation Bank of India
This is another education loan for girl students in India offered by the Corporation Bank of India. This scheme is specifically tailored and designed for the girl students in India with the aim of providing financial assistance to them for higher education. Corporation Bank of India provides loans of up to INR 10 lakhs for graduate and post-graduate courses. The repayment period is up to seven years, and the interest rate is fixed at 11.5%.
Also Read: Comparing education loan interest rates is one of the best practices before applying for a loan with any lender. Compare the education loan interest rates of leading banks and NBFCs to find the best-suited lender.
Eligibility Criteria for Education Loan
The student must meet certain criteria to avail education loan from any financial student or bank in India. Always be sure to check out the eligibility criteria before applying for an education loan for girl students in India.
- Generally, a minimum of 16 or 18 years of age(It may vary from bank to bank).
- Residence in India.
- Residential status requirements may vary in the case of some particular schemes. (For example, If you are applying for Kalupur Bank education loans for abroad studies, you must be a resident of Gujarat or Maharashtra.)
- The candidate must have secured a seat in any of the approved foreign universities for education loans.
- Suppose there is no entrance examination or merit-based selection process and the admission is based on qualifying exams. In that case, the student should have scored at least 50% marks in the qualifying examination.
- The student must have a co-applicant
- The applicant must have collateral security.
Note – Please be sure to check the eligibility criteria either with the bank or at Vidya Lakshmi Portal as it may vary from bank to bank and scheme to scheme.
Documents Required
The applicant and the co-applicant/ guarantor are required to submit certain documents and bonafide certificates to banks related to personal details, academics, income, and collateral. These help banks verify your eligibility and process education loans. Check out the basic list of documents you may be required to submit at the time of application for an education loan for girls students in India.
- KYC of applicant and co-applicant for identification purposes.
- Academic records of students.
- Entrance exam results (if applicable)
- Statement of cost of study/ Schedule of expenses
- Income Proof for Salaried Co-applicant/ Guarantor (if applicable)
- Bank account statement for the last 6 months
- Property Documents (if applicable)
Also Read: Having a gap after higher studies for entrance preparations or career building? Check out the details about obtaining a gap certificate for an education loan.
Application Procedure Through Vidya Lakshmi Portal
Here is a guide to applying for the maximum education loan for abroad studies:
- Visit the official website of the bank or the Vidya Lakshmi Portal.
- Check out the eligibility criteria
- Download the loan application form
- Fill out the application form
- Upload the completed application along with the requisite documents
- Download the application form and visit the nearby SBI branch with a copy of all the required documents.
- Get your collateral evaluated.
- Submit the valuation report to the loan officer
- After getting approval, the loan department will now check all the documents and provide the sanction letter.
FAQs
The central bank provides education loans at affordable rates. The lowest interest rate provided by the Central Bank of India is 6.85%. It also provides concession on ROI for backward classes SC/ST students and female students.
IOB Education loan interest rates vary between 9% to 13% depending on factors such as credit score, loan amount, and repayment period. The girl child will get a 0.50% concession on interest rates.
Indian Overseas Bank provides a rebate of 0.5% to 1.5% to female students and wards of IOB employees and retired employees.
The repayment period for education loans for female students in India can range from 5 to 15 years, depending on the loan amount and the policies of the lender. Some banks and financial institutions may charge a penalty for early repayment.
Some banks and financial institutions offer special interest rates for education loans for girls in India. State Bank of India, Bank of Baroda, Punjab National Bank, IDBI Bank, Indian Overseas Bank, Central Bank of India, ICICI Bank, Canara Bank, South Indian Bank, Bank of Maharashtra, UCO Bank, YES Bank are the banks that provide 0.5% concession on interest of education loan for girl students in India.
Hope you liked reading our blog about education loan for girl students in India. To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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