How to get Education Loans?

What is Credila

• Credila is a Non-Bank Finance Company
• Credila is the only lender which is exclusively focused on Education Loans
• Credila is a subsidiary of HDFC Ltd.
• Over 90,000 students & parents have already applied to Credila
• Credila has already funded students studying abroad

Highlights

• Get tax benefits under Section 80(E) of the Income Tax Act of India
• Education Loan Home Delivered!
• Flexible choices of repayment terms
• Loan up to 100% of educational expenses. No margin money required.
• Flexibility on collateral security
• Loan sanction before admission
• Multi-city co-borrowers accepted
• Web-enabled billing & servicing

Click to apply for Education Loan in 3 Easy Steps

Tips to note in applying for an education loan

Ideally, take a loan from a bank located at your place of study than one located where you reside, unless it concerns overseas studies. This is because you will have better access to funds if you take a loan from the place of your study. Secondly, Make sure the repayment period starts only after six to twelve months after you begin your working life. And thirdly, Banks typically prefer to finance students who opt for traditional courses.

What Professional Courses do Banks generally provide education loans?

Management students are among the top choices for most of the banks. Technology students from the country’s premier institutions can also get student loans from Banks and Medical and engineering college students. Banks don’t provide loans for students with a bachelor’s/master’s in Arts. Also, for courses where employment prospects are less (as per Bank’s own evaluation), loans are sanctioned on the basis of the parents’ income.

How many loans you can get?

Loan for Studies in India Most of the Public Sector Banks in India have categorized Student Loans in two categories. For Studies in India, Students can borrow up to Rs 4 lakh without providing any security or margin. A loan amount of Rs 4 lakhs to Rs 7.5 lakhs can be availed against a third-party guarantee. This loan comes with a five per cent margin (what this means is that you will get five per cent less the amount sanctioned as a loan; you will have to put together the rest of the money). The third-party guarantee can come from an uncle, neighbour or friend standing guarantee for the full amount.

Overseas study loans: Amounts worth Rs 7 lakhs and above are usually sanctioned against fixed deposits, NSC certificates, property worth the loan amount and a margin amount of 15 per cent (what this means, again, is that you will get 15 per cent less the amount sanctioned as a loan; you will have to put together the rest of the money). Also, if a loan below Rs 4 lakhs comes at x rate of interest, the loan over Rs 4 lakhs is usually charged one per cent higher interest. The Reserve Bank of India prescribes the specifics (amount, rate, repayment period) of education loans and the government provides a two per cent subsidy on these loans to the banks.

 Repayment – Course period + 1 year or 6 months after getting a job, whichever is earlier.

What are the Documents required for applying for a Student Loan?

All students are required to submit mark sheets of last qualifying examination, proof of admission scholarship, schedule of expenses for the specified course, his/her bank account statement for the last six months, an income tax assessment order for the previous two years, a brief statement of assets and liabilities, of the co-borrower, which is usually the parent or guardian and proof of income, if any.

Some banks require all or any of the following documents as pre-sanction documents: To furnish the following documents along with the completed application form.
Relevant information would relate to the guardian and the student both when the loan is jointly taken.

1)Mark sheet of last qualifying examination for school and graduate studies in India
2)Proof of admission to the course
3)Schedule of expenses for the course
4)Copies of letter confirming scholarship, etc.
5)Copies of foreign exchange permit, if applicable.
6) 2 passport size photographs
7) Statement of Bank accounts for the last six months of borrower.
8.) Income tax assessment order not more than 2 years old
9) A brief statement of assets and liabilities of the borrower.
10)If you are not an existing bank customer you would also need to establish your identity and give proof of residence.

Eligibility for getting a loan:

The applicant should be an India National
The applicant must have secured admission to professional/ technical courses through Entrance Test/    Selection process
Secured admission to foreign university/ Institution

Which Banks are offering Education Loans in India?

Most of the Private Sector banks, Foreign Banks and Public Sector Banks in India are providing Student Loans. Below given are some of the main banks which have flexible Education loan schemes.