by Admin Date 23/03/2020
A Student loan is a type of loan that helps students who want to go for higher education. An Education loan can be taken for paying the associated fees like tuition fees and also for books and supplies and accommodations. It is totally different from other types of loans and the interest rate is also lower than other loans and the payback of student loan is also different from other loan while the during the academic period.
Student loans are very beneficial for those studends who want to goes for higher studies. Usually student loans are provided by banks. Both government and private banks provide education loans to the bonafied students.
These education loans help students to make their future bright. With this facility those students can also full fill their dreams.
Repayment of education loans only based on the duration of the course it can be minimum 2 years Or maximum 6 years. With the help of these credits students can also go for higher studies in abroad.
To apply for student loan student must an Indian citizen and also must take the admission in the college/University. This student loan scheme first started and operated from year 1963 by which many students can apply for student loan for the future education.
Basically there are three types of students loans which are as follows:
·Federal loans provided by the government.
·Private Loans when bank credit unions and state make private loans.
·Refinance Loans This loan type is same as private loan.
Base Rate is the minimum rate of amount which is set by Reserve Bank of India(RBI) to all the banks in which banks are not allowed to lend its customer. With the help of Base rate RBI ensures that Bank Pass the lower cost of fund to their borrower.
Essential Documents require for applying for education loan which are as follows:
Eligibility Criteria for applying for education loan in India:
State Bank of India (SBI) provides education loan for graducation and post graduation or technical courses conducted degree or diploma. State Bank Of India offers education loan for loan amount up to rs.7.5 lacs with one year MCLR and 2.00% spread and for above rs. 7.5 lacs it raises to one year MCLR and 2.25% spread. There is also concession on loan amount of 0.50% for girls specially and also for those students availing of SBI Rinn Raksha policy in favor of other banks.
Axis Bank offers student loan for loan amount up to rs. 4 lakh at interest rate of 7%+Base Rate and for loan amount from rs. 4 lakh to up to 7.5 lakhs at interest rate of 8% +Base rate,for loan amount greater than rs. 7.5 lakhs, axis bank charges Base rate+6%.
Axis banks offers education loan for girls students for loan amount up to rs. 4 lakh at interest rate of 6.50%+Base Rate and for loan amount from rs. 4 lakh to up to 7.5 lakhs at interest rate of 7.50% +Base rate,for loan amount greater than rs. 7.5 lakhs, axis bank charges Base rate+5.50%.
And there is no margin money for education loans on amount up to rs. 4 lakhs.
Education loan for students for students in India by HDFC Banks provides loan up to rs. Ten lakhs for studies in India. And Borrower can avail loan amount up toten years and for loan amount above rs. 7.5 lakhs the tenure can be select up to 15 years after the moratorium period.Loan Cancellation Charges are also NIL in HDFC Bank. EMI return charges is rs. 550 as per the instances. Interest rate up to 14.1% and processing fees on loan amount up to 1.5% as per the ratings.
Canara Bank is one of the banks which provide low interest rate for education loan. Canara banks offers student loans on the basis of institutions types as well as also depends on courses and the academic level of applicant who applies for the education loan. Maximum loan repayment tenure provided by Canara Bank is up to 15 years. There are also low loan amounts are available starting from rs. 20,000.The MCLR of Canara Bank is currently 9.65% and the interest rate on loan amount is 11.15% for the male students and 10.65% for the girls students. Loan margin Charges is at rate of 15%.Maximum loan amount is totally depends upon the eligibility of the applicant in Canara Bank.
Bank of Baroda offers different types of education loans based on the types of institutions .Bank of Baroda offers for loans up to 7.5 lakhs the tenure is 10 years and repayment period starts after the one year of completion of the courses or it can be repay after the 6 months of getting job. For loan amount above rs.7.5 lakhs the tenure becomes up to 15 years and currently Bank of Baroda education loan base rate is 10%. For loan amount up to rs. 4 lakh at interest rate of 2.50%+Base Rate and for loan amount from rs. 4 lakh to up to 7.5 lakhs at interest rate of 2.50% +Base rate,for loan amount greater than rs. 7.5 lakhs, axis bank charges Base rate+1.75%.