Best education loans in India – 2023
As education becomes more expensive, many students in India are finding it difficult to fund their higher studies. Education loans have become a popular option for those seeking quality education without worrying about the financial burden. In this blog post, we’ve rounded up the best education loans available in India for 2023. Whether you’re pursuing a bachelor’s degree or planning to go abroad for further studies, this guide will help you find the right financing options that suit your needs and budget. So buckle up and let’s dive into the world of education loans!
Best Education Loans in India 2023
Following is the list best education loans in India:
- Punjab National Bank
- SBI Education loan
- Axis Bank education loan
- Bank of Baroda education loan
- HDFC Bank Education loan
Eligibility Criteria for an Education loans
Following are eligibility criterias for an education loan:
Nationality: Citizens of India, Non-Indian Residents (NRIs), Overseas Citizens of India (OCI), Persons of Indian Origin (PIOs), and Students born in India to Indian parents who wish to study in India are all eligible.
Courses: From nursery to class twelve, Courses for graduation and post-graduation, job-oriented courses, doctoral courses, PhDs, diploma courses, and so on.
Collateral: Property, plot, fixed deposits, and insurance, whether residential or commercial.
To learn more about how to apply for education loans Click here.
Expenses covered under education loan
In India, education loans typically cover the following expenses:
Tuition Fees: This includes the course or programme fees charged by the educational institution.
Examination fees: This includes any fees assessed by the educational institution for exams, projects, or assignments.
Library Fees: This includes any charges imposed by the educational institution for using the library or accessing online resources.
Hostel fees: This includes any fees charged by the educational institution for lodging in a hostel or dormitory.
Laboratory fees: This includes any fees charged by the educational institution for using labs or other specialised equipment.
Travel fees: This includes any travel costs to and from the educational institution, such as airfare, train tickets, and bus tickets.
Books and other study materials: This includes the cost of purchasing books and other course or programme materials.
Insurance: Includes any insurance premiums mandated by the educational institution, such as health or accident insurance.
Other miscellaneous Expenses: This includes any additional expenses incurred as a result of pursuing a course or programme, such as printing costs or equipment rental fees.
List of documents required for Education loans
The following is a list of documents needed for an education loan approval in India –
- Admission Letter From The Educational Institution Applied To
- Previous Marksheets
- Age Proof
- Id Proof
- Address Proof
- Signature Proof
- Latest Salary Slips
- Latest Bank Statements
- ITR With The Income Computation
- Audited Balance Sheet
- Proof Of Turnover
- Completed Application Form With Signature
- Latest Passport-Size Photographs
- Appropriate Visa For Abroad Studies
Advantages of taking an Education loan
Here are some of the reasons why getting an education loan when you need one is a good idea for you:
Affordable interest rates: In India, education loans typically have lower interest rates than other types of loans, making them more affordable to students and their families.
Long repayment tenure: Education loans typically have longer repayment terms, allowing borrowers to repay the loan in smaller monthly installments over a longer period of time. This helps students manage their finances and repay their loans without feeling overwhelmed.
Tax benefits: Students in India who take out education loans are eligible for tax breaks under the Income Tax Act. This can help to lower the overall cost of the loan, making it more affordable for students.
No collateral required: Many education loans in India do not require collateral up to a certain amount, making them more accessible to students who may lack collateral.
Covers the entire cost of education: Education loans can cover the entire cost of education, including tuition, housing, and other costs associated with studying abroad. This is especially beneficial for students who may not have the funds to cover these costs on their own.
Helps build credit: Paying off a loan on time can help students build a good credit score, which can help them when applying for other loans or financial products.
The following are some of the best education loans available, along with education loan details and a brief overview-
Education Loan from Punjab National Bank
Punjab National Bank (PNB) provides education loans to students seeking higher education in India or abroad. Based on the needs, the loan amount can be any number. The loan can be used for a variety of courses, including graduation, post-graduation, and professional courses.
Education Loan from SBI
The State Bank of India (SBI) Education Loan is a financial assistance program offered by the SBI to students pursuing higher education in India or abroad. The loan is intended to assist students in covering the costs of tuition, fees, books, and other study-related expenses. The repayment is due one year after the completion of the course.
Education Loan from Axis Bank
Axis Bank provides education loans to students who want to further their education in India or abroad. It is one of the best banks in India for education loans. The loan amount is determined by the student’s chosen course and institution and can cover tuition, hostel fees, and other expenses.
The minimum loan amount is Rs. 50,000, and the loan is disbursed within 15 business days of application submission.
Education Loan from Bank of Baroda
Students who have been accepted to a recognised institution for higher education in India or abroad through a competitive examination or merit-based selection process are eligible for this loan.
There are no processing or documentation fees to pay. Up to 4 lakhs, no collateral is required. Repayment of the loan begins one year after the course is completed or six months after landing a job, whichever comes first.
Education Loan from HDFC Bank
HDFC Bank provides one of the best education loans in India for students based on course fees, living expenses, and other course-related expenses. The repayment period can last up to 15 years. A loan of up to INR 7.5 lakhs does not require collateral.
The bottom Line
The bottom line is that there are a number of education loans available in India, and it is important to compare the various options before selecting one. Each loan has different terms and conditions, and it is important to select the loan that best suits your needs. Education loans can be used for a variety of purposes, such as paying for tuition, books, and living expenses. When comparing loans, you should consider the interest rate, repayment terms, and any other fees that may be associated with the loan.
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