Education Loan : Everything That You Need To Know

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Congrats! After a period of long hard work, finally your child has cracked the entrance exam. He/she is heading for fulfilling your dreams. So, in which professional college, you are going to seek admission for your beloved ward? Wait…wait…wait! Why there are so many wrinkles on your head? Oh…understand! You are thinking about the college fee. Don’t agonize….just go to a nearby bank and apply for an education loan.

Are You Eligible for Obtaining an Education Loan?

Banks provide education loan to those, who fulfill the following requirements:

  • The student should have citizenship of India.
  • The course, in which he/she is enrolling, must have more job opportunities.
  • The institution, in which the student is going to seek admission, should be recognized by the government.
  • For SC and ST categories, the aggregate percentage in higher secondary should be fifty percent and above. For other categories, it is sixty percent and above.

However, students pursuing higher education from an unrecognized institute or enrolling for a course having not much job opportunities will not be able to get the loan.

For which Courses, Education Loans are Available?

  • Diploma courses (ICWA, C.F.A, C.A., etc.)
  • Graduate courses (B.C.A., B.A., B.Sc.,, etc.)
  • Master degree courses (M.C.A, M.B.A, etc.)
  • Technical courses (management, law, agriculture, medicine, engineering, etc.)

How Much Amount You Can Receive as a Loan?

If your ward wants to pursue higher education from India, you can obtain a maximum loan of ten lakhs.  If your child desires to study abroad, you may get loan up to twenty lakhs.

If the loan amount is higher than the stipulated, it will depend on bank’s discretion to finalize it or not. Before finalizing the loan of such a huge amount, bank considers various criteria, like job prospects of the selected course, marks secured by the student and your income level.

How to Get an Education Loan?

You can apply for the loan from any nationalized, public or private bank. After enrolling your child for the course, you can contact to the bank manager. He/she will provide you the detailed instructions and provide you a form to fill in.

You may require submitting the following documents:

  • Admission receipt of the college, in which your ward has taken admittance.
  • Certificate from the college having details of fee structure of the course.
  • Mark sheet of higher secondary (12th standard)
  • Income certificate
  • An attested copy of ration card, as an address proof.

If you want to receive early sanction of the loan, apply with the bank, where you are having your saving account. If you will apply with the bank, where you are not maintaining an account, it would take longer time.

This is the common procedure. For more details, contact the manager of your nearby bank.

Shun all the worries and celebrate the grand success of your ward!