Graduate Student Loan: Rates, Limit, Calculator, Repayment, Application Process

graduate student loan

Student loans are designed to help students to pursue their higher education and cover the expenses including associated fees, books and supplies, tuition and living expenses. Students can avail of the loan to pursue their undergraduate, postgraduate and PhD levels of education in India or Abroad. Student loans are provided by various financial institutions including banks, moneylenders, private enterprises and government banks. And if you wish to know more about Graduate Student Loan, continue reading the blog. 

Why Take Graduate Student Loan?

The following are the reasons to take a graduate student loan:

  • Graduate student loan enables students to pursue their higher education in their dream university be it in India or Abroad. 
  • Many students choose to take student loans to start their own business ventures. This prevents you from going through the hassle of finding a venture capitalist. You can take the loan and plan the idea effectively 
  • Students also take graduate loans to fund their research studies

Also Read: Types of Education Loans for Indian Students

Features of Graduate Student Loan

The following are the features of Graduate Student Loan:

  • Local students can borrow up to INR 50 lakhs, while international students can borrow up to INR 1 crore
  • Other costs, such as student exchange travel fees and computers, are covered by the funding
  • For overseas disbursements, preferential exchange rates may be offered
  • For some circumstances, 100% financing is possible
  • The loan repayment duration might be extended to twelve years after six months of completing the course  

Graduate Student Loan Interest Rates

The interest rate for Graduate Student Loan varies depending on the bank from where you wish to seek the loan amount. It also depends on the amount to be taken, the college or institution and the course you have applied for. Generally, the interest rates applied on graduate student loan ranges between 9-14%

However, some banks like the Bank of Baroda offers fixed interest rate. This is usually 2.5% more than the interest rate offered by other banks. Women students receive a special compensation of 0.5/1 % on interest rates. 

Some banks offer special concessions to students who get into prestigious institutions in India or Abroad. 

Also Read: ICICI Education Loan

Eligibility Criteria for Graduate Student Loan

Students will be required to fulfil the following criteria in order to avail of graduate student loans. It may vary, depending on the type of education loan you choose.

  • To obtain admission/invitation from a university to pursue a program at the university 
  • For an undergraduate program, students are required to complete 10+2 (12th grade) and an undergraduate degree in order to pursue a postgraduate course
  • The applicant must have an excellent academic record 
  • The age of the applicant must be between 16 to 26. For some banks, it can be between 16 to 35.
  • Regular income of the parent or the co-applicant is a must

Documents Required

The following are the documents required to apply for a graduate student loan:

  • 2 passport-size photographs 
  • Admission letter
  • A detailed course fee structure 
  • Duly filled loan application form and photographs
  • KYC documents
  • Marksheet of educational qualifications
  • Pan card of student and parent/guardian
  • Identity proof (driving license, passport, Aadhar, or any other government-approved identity card)
  • Proof of income of parent, guardian, or the co-applicant 
  • Student/co-applicant/ guarantor’s last 6 months’ bank statements
  • Residential proof  (driving license, passport, electricity bill, telephone bill) 
  • A statement of assets and liabilities of parent/guardian/co-applicant 

Application Process

The following are the steps required to apply for a graduate student loan:

Submit the loan application form 

You can apply for a loan process via online or offline mode. You can visit the official website of the financial organization from where you wish to avail of the loan. Fill out the application form and provide all the required information accurately. Finally, submitting the application form

Discussion

After the application submission, you will be called for personal discussions. During the discussion, the representative will ask you various questions related to your academic performance and the institution you have applied for. 

Supporting Documents

Now you will be required to provide all admission-related documents at the bank. The bank will run checks and verify your enrollment. You may also be required to provide some collateral evidence for the same.

Decision on the loan

Before making a decision on your loan application, the bank will check the credit history of the guarantor. Once the process is complete, the bank will make a decision to either approve or reject your loan application parents. When the process is complete bank will either approve the loan or deny it. If approved, the bank will complete the relevant formalities and disburse the loan. 

Also Read: The Best Education Loan in India for Study Abroad Purposes

Repayment Methods 

The following are some repayment plans one can opt for:

  • Standard Repayment plan – The borrower wishes to return the loan amount within the shortest time duration to minimize interest charges
  • Graduate Repayment Plan – The payment amount starts off low and is increased gradually with the loan paid in full over the period of 10 years 
  • Extended Repayment Plan – The amount of the payment may be fixed or graduated with the loan amount paid in full over the period of 25 years

FAQs

Q1. Which bank provides the best graduate student loan?

Ans. The following are the popular loan providers in India:
HDFC Education Loan
Union Education
State Bank of India Education Loan
Citibank Personal loan
IDBI Education Loan

Q2. What are the eligibility criteria to apply for a graduate student loan?

Ans. The following are the eligibility criteria to apply for a graduate student loan:
To obtain admission/invitation from a university to pursue a program at the university 
For an undergraduate program, students are required to complete 10+2 (12th grade) and an undergraduate degree in order to pursue a postgraduate course
The applicant must have an excellent academic record

Q3. Why should I apply for a student loan?

Ans. The following are the reasons to take a graduate student loan:
Graduate student loan enables students to pursue their higher education in their dream university be it in India or Abroad. 
Many students choose to take student loans to start their own business ventures. This prevents you from going through the hassle of finding a venture capitalist. You can take the loan and plan the idea effectively 
Students also take graduate loans to fund their research studies.

We hope that this blog has provided you with relevant information on Graduate Student Loan.

We understand how expensive studying abroad can be, so we don’t charge students anything. Yes, you read that correctly: all of our services are free of charge. So, from the comfort of your own home, begin your loan application to study abroad, submit papers, and finalise the loan agreement. Let Fly.Finance assists you every step of the way. 

About Charvi Khaneja

Charvi Khaneja is a proficient writer with a passion for simplifying complex financial concepts and empowering individuals to make informed decisions about their money. She writes about the finace perspective with relation to study abroad.

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