Education loans are a great way to overcome financial hurdles in one’s educational journey as it allows the student to borrow money in order to pay their education-related expenses like tuition fees, accommodation expenses, etc. In order to get an education loan a student should fulfil the eligibility requirements of the bank such as being able to demonstrate financial need, a great academic record, an offer letter, etc.
The following blog contains information related to instant student loans, the basic eligibility criteria and documents required for education loans along with the options of banks whose education loan process is less time-consuming. Keep reading further to know more about Instant Student Loan!
Advantages of an Education Loan
Taking up an education loan is a great way to pursue higher education without facing financial obstacles:
- Loan Repayment Tenure – An education loan provides the option of long tenure to repay the loan, allowing the borrower to pay back the loan in smaller instalments over an extended period of time. This makes it easy for the student to manage their finances without getting overwhelmed.
- Affordable Interest Rates – As compared to other types of loans, the interest rate of the education loan is comparatively lower. This makes it affordable for the students and their families.
- Tax Benefits – When a student takes an education loan they get the option of availing tax benefits under the Income Tax Act. Due to this, the cost of the education loan gets reduced which makes it an affordable option for the students.
- No Collateral Required – There are many options available for education loans that do not ask for collateral from the applicant. This makes it easier for students to get the loan who do not have collateral to offer.
- Covers the entire cost of education – Education loan cover every expense related to the course of the students which include things like tuition fees, accommodation and miscellaneous expenses related to studying abroad.
- Helps in building credit score – When a student repays the loan amount back on time this helps the student in building a good credit score which helps in future when they have to apply for a loan.
Also, Read Student Loan Repayment Calculator in India – A Detailed Guide!
Best Options for Instant Student Loan
Mentioned below is the overview of the banks that sanction instant student loans comparatively in less time as compared to other banks.
HDFC Bank Education Loan
Education loan offered by HDFC Bank is one of the best options for students looking for financial assistance as it covers various expenses like tuition fees, living expenses and other expenses related to the course. It also offers a long repayment tenure of up to 15 years. In addition, there is no collateral asked by the bank for a loan amount of up to INR 7.5 Lakh.
Bank of Baroda Education Loan
Applicants who have secured admission abroad or in India through competitive examination or on the basis of merit can avail Bank of Baroda Education Loan. There is no documentation or processing fee levied on applicants. Students taking loans of up to INR 7.5 Lakh don’t need to provide collateral. The repayment of the loan begins one after the student has completed the course or after 6 months of getting the job, whichever is earlier.
Axis Bank Education Loan
The education loan provided by Axis Bank is one of the best education loan options for students who want to pursue their higher education abroad or in India. The course and institution chosen by the student are the basis on which the loan amount is provided by the bank. The loan amount can cover expenses like tuition fees, accommodation expenses and other educational fees/expenses.
SBI Education Loan
It aims to provide financial assistance to students who want to pursue their studies in India or abroad. The loan amount covers various education-related expenses like tuition fees, books, accommodation and other expenses related to the course of the student. The repayment of the loan begins 1 year after the student completes the course. Apart from these benefits, the other advantage of an SBI education loan is that there is no processing fee charged on the loan amount up to INR 20 Lakh.
Punjab National Bank Education Loan
PNB Education loan aims to help students overcome financial hurdles in their higher education. It is one of the best instant student loan options for students who want to pursue their education in India or abroad as the entire process of loan is less time-consuming. The loan is available for various courses which entail undergraduate, postgraduate and professional courses.
Also Read: Bank Giving Education Loan in India
Eligibility Criteria
In order to ensure that you must get approved for an education loan there are certain requirements of the bank that you should fulfil. Mentioned below are the general eligibility criteria stated by the banks for the education loan:
- Courses – An applicant should have completed Nursery to Class 12th; the student should be applying to the approved undergraduate, postgraduate, Doctoral, job-oriented, PhD, Diploma courses, etc.
- Nationality – The citizenship status of the applicant should be one of the following options: Persons of Indian Origin (PIOs), Citizens of India, Non-Residents of India (NRIs), Overseas citizens of India, and students born to parents of Indian origin abroad and want to study in India.
- Collateral– It can be commercial or residential property, plot, fixed Deposits, and insurance.
List of Documents Required for Education Loan
Mentioned below is a list of general/basic documents required for an Education Loan:
- Admission Letter from the university applied at
- Latest passport-size photographs
- Id Proof
- Age Proof
- Previous Marksheets
- Address Proof
- Signature Proof
- Latest Bank Statements
- Latest Salary Slips
- Audited Balance Sheet
- ITR with the Income Computation
- Completed Application form with signature
- Proof of Turnover
- Appropriate visa in case of wanting to study abroad
Must Read: Things To Know Before Applying For A Study Abroad Education Loan For Your Child
Expenses Covered Under Education Loan
While applying for an education loan it is important to know about the expenses covered under it. Mentioned below is a list of expenses covered under an education loan:
- Tuition fees – It is the fee charged by the university/college for the course/program.
- Library fees – This includes charges levied by the educational institution for assignments, exams and projects.
- Hostel fees – This includes charges related to the hostel or dormitory provided by the institution.
- Library fees – This type of fee is related to the library and online resources provided by the educational institution.
- Laboratory fees – These include fees levied on the access given to students for labs and other specialised types of equipment.
- Travel Expenses – This type of expense covers the travel of the students to and from the educational institution which includes airfare, bus tickets and train tickets.
- Books and other study-related materials – This includes books and other materials that aid in studying during the course.
- Insurance – This covers insurance premiums for health or accident insurance provided by the educational institution.
- Miscellaneous Expenses – This covers various extra expenses related to pursuing the course such as printing or equipment rental fees.
Must Read: Student Loan – Refinance/Consolidation
FAQs
Ans. Generally, the disbursement of education loans takes around 15 days. However, it varies from lender to lender.
Ans. Bank of Baroda’s process for education loans is not that time-consuming and therefore, the whole process gets completed quickly.
Ans. Banks do not lay emphasis on 12th class marks of a student rather they focus more on the fact whether a student is able to secure admission in a course.
This is everything you need to know about Instant student loans. Worried about the financial hurdles you are facing for your study abroad dreams? Let Fly Finance help you and make your dreams come true!
