How to get an Education Loan in India

Many of us are used to the idea that our parents are going to pay for our education. However, this may be difficult in many cases if you are opting for super expensive professional studies. A model has emerged now under which students go to expensive colleges that lead to good recruitment, making it easy to pay for the educational loan when the student is finally employed.

Understanding Education Loan
An education loan is a form of credit advanced to scholars and students; it is designed to help students pay for college tuition, books, laptops, hostel fees and other living expenses. It differs from other types of loans in that the interest rate is often substantially lower than most other loans and the repayment schedule is deferred while the student is still in school. It is priority sector lending for bank and also often relatively profitable – so most banks offer educational loans in large numbers.

Where does it come from?
Good question indeed.
Not everyone can offer a credit which you are going to return after n number of years. Here in India almost all the Public Sector banks offer Education Loan.
Some of the nationalised banks such as SBI group have special programmes, some of them are:
* Lower interest rates for girls, SC, ST, disabled.
* Lower interest rates for toppers, etc.
Taking education loans from government bans like SBI, Corporation Bank or UCO Bank is advisable because private banks impose stricter and more difficult conditions for educational loans.

Some banks have restrictions like:
The student or the guarantor should have a valid bank account for at least 6 months,
or the residence must be within 2 km from the bank branch, and so on.
The documents required may change from bank to bank, time to time. Usually the following will be asked for:
* Mark sheets of your last qualifying exam
* Proof of admission into the college
* Schedule of expenses for the course
* Photographs (Usually passport size)
* Bank Account Statement of the Borrower for the last six months (If Applicable)
* Income tax Assessment statement of the guardian (Parents or Guardians)
* Statement of Assets & Liabilities of the co-borrower (Parents or Guardians)
* Proof of Income of the Guardian
* Identity Proof like Driving License, Passport or Voters ID for both the student and the Guardian
* Address Proof like Ration Card or Electricity Bill etc
The list above is not exhaustive but it covers most of the documents that may be required to get an education loan. So, it is your responsibility to perform the entire requisite due diligence to ensure that you know what the bank will ask for when you go to them for the loan.
Important Do’s and Don’ts for Education Loans
An education loan is a long term financial commitment, certain things are important and you need to remember them. They are:
* Do thorough research while applying for an education loan.
* See if your requirements match with the requirements of the bank.
* Read all documents carefully, never assume anything.
* Try to understand all the terms and conditions properly.
* Don’t involve any middle agents or brokers. It is better to deal with the bank directly.
* Preferably opt for a bank that is near your home where you or your parents have a bank account for a few years and have a good reputation.
* Make sure you submit all the relevant documents.
* Do not forge any documents in an attempt to fast-track your case.
* Do not attempt to bribe anyone.
* Make sure you follow-up with bank officials regularly.
Courses eligible for loan
There are many courses that are eligible for an education loan. Here are some of them:
Courses in India
* Graduation courses like BA, B.Com, B.Sc etc
* Post Graduation courses like M.Sc, M.Com, PhD etc.
* Professional Courses like Engineering, Medicine, Law, Veterinary, Management etc
* Courses like ICWA, CA, CFA etc
Courses Abroad
* Post Graduation Courses like MCA, MBA, MS etc
* Graduation courses offered by reputed universities
Please note that, this is not an exhaustive list. It is just an indicative list that shows you the kind of courses which are eligible to get an education loan.

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Hi, I am Purvi Kanojiya working with Finance company as adviser owing good knowledge of different types of Services such as Education loan in India and Education Loan so on.

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