EDUCATIONAL LOAN

EDUCATIONAL LOAN

An education loan is a form of financial assistance that provides the student with funds to pursue higher education. The funds raised on the student loan for study abroad can finance tuition, exam, library, and activity fee, including other facilities such as accommodation/dorm, courses, equipment, etc. It is paid back in EMIs(Equated Monthly Installments) with interest once the student starts earning i.e by definition between 6 to 12 months after the student who has obtained the student loan for study abroad has graduated, known as the moratorium period. There are various education loan types available for students, and these loans vary from bank to bank. However, on average, the loan acquired is usually between Rs.1 lakh and Rs.5 lakh, extended as required. The interest rates on loans are currently between 8% to 10%.

Unique Points & Features

Loans up to 90% of the cost of education

Avail of an education loan of up to 90% of the cost of education from several leading lenders at lower interest rates and flexible repayment tenures of periods extending up to 15 years.

Easy repayment terms

Find preferential rates with any banker of your choice for top-ranked universities with flexible security and co-signer terms.

Moratorium/Pay after graduation

The loan repayment period will start after 6 months to 12 months after graduation. This scheme will allow the student to repay the loan post-course completion without financial stress during the course period.

Tax exemptions

Several tax exemptions can be availed by declaring the education loan details and salary brackets of the applicant(s).

Flexible collateral options

The applicant need not liquidate valuable assets to avail of the loan. Most banks offer education loans by retaining FD, Government bonds, or insurance without requiring tangible assets that you may consider valuable.

Subsidy schemes

The Indian government has introduced several subsidy schemes for the benefit of students belonging to backward sections of society. The benefits of subsidies may allow the student to escape moratorium interest rates.

No processing fee

Most banks offer education loans without processing or disbursement fees. Contact LoanAxix to find the best deals on your loan at lower interest rates.

Affordable interest rates

Education loans have competitive interest rates that allow the student to pay readily once employed.

High LTV

Find options with maximum loan limits of up to 1.5 crores to perform quality education from top-tier universities for any field or department requiring higher funds.

Types

Type By Security

Loan against security: The borrower can submit collateral in Bonds / FD / Insurance / Debentures /equity shares to avail of an education loan.

LAP Loan: LAP or Loan against property is another type of collateral scheme where the borrower can submit a property or immovable asset(owned by him/co-applicant) such as a house or land as collateral against the loan acquired.

Loan against deposit: Gold/fixed/recurring deposits can be submitted as a security against the loan.

Type By Education

Domestic Loan: Domestic loan is acquired for educational purposes of the borrower pursuing education within the country.

International Student Loan: Students studying higher studies or courses abroad may avail of a study abroad education loan with a secured seat among the eligible or listed universities or colleges by the bank or the lender.

Type By Course

Graduate Loan: Students who have completed undergraduate programs can avail of a graduate loan if they are willing to pursue advanced degrees at institutions around the country.

Undergrad Loan: Undergraduate loans are intended to aid students who have completed their secondary education and decide to pursue further education over a strict curriculum period.

Career Education Loan: Professional or career education loan is for individuals enrolled in career-oriented programs (training/courses) within or outside India.

Type By Scheme

Dr. Ambedkar Central Sector Scheme: EBC or OBC candidates intending to pursue studies overseas can avail of this loan with added benefits and flexibility on the terms and conditions of the loan.

Central Sector Scheme Of Interest Subsidy: For ECB candidates with a family income limited to 4.5 L.P.A, this subsidy applies to avail of loan benefits over grad, undergrad, or combined courses in India.

Vidya Lakshmi Scheme: Over 38 banks provide financial assistance under this scheme. First initiated by PM Narendra Modi, Vidya Lakshmi Scheme offers various benefits on loans without any security or collateral up to Rs. 7.5 Lakhs.

Padho Pardesh Scheme: ECB candidates eligible for this loan can avail of tax benefits supported by study abroad programs. To be eligible, the minority member should produce a self-declaration certificate, merit certificates, and yearly family income proof(of not more than 6 L.P.A).

Note: Contact LoanAxix for more detailed information on the loan types and schemes offered by our financial partners.

Eligibility Criteria

Age: 18 - 35 (Conditions Apply)

Nationality: Citizen Of India

Student Requirement:

> The student should pass the required qualification exams (GRE/TOEFL/GMAT, if applicable)

> The student should receive admission to a recognized university (India/Abroad)

> The student preferably should have a good academic record

> The student should apply for a loan with a co-application(parent or spouse) with a stable income (as requested)

Eligible Courses:

> Bachelor’s Degree (B.Tech, B.Com, B.A, B.E, B.Sc, MBBS, etc.)

> Master’s Degree (M.B.A, MCA, M.Com, M.Sc, M.S, etc.)

> Doctorate (Ph.D., D.A, DBA, JCD, etc.)

> Diploma (Any)

> Certificate Course (Any)

> Medical & Aviation

> Vocational Courses, Etc.

Income: The income requirements may vary with the type of loan, student academic background, amount requested, applied candidate, type of collateral, admitted university, etc.

Note: Contact LoanAxix to know more about Income requirements. Conditions applied.

Collateral: Loan against deposit/security/property

Credit/CIBIL Score: Any profile

Note: The eligibility criteria mentioned above are generic and may vary from lender to lender. Please reach out to us at Loanz360 for a personalized eligibility chart.

Documentation

Applicable to students and parent/guardian/co-borrower.

ID & Age Proof : Passport/Voter ID/Aadhar/Driving License/PAN Card/Form 60

Address Proof: Rental Agreement/Electricity Bill/Ration Card/Copy of Telephone Bill/Insurance Bond/Latest Copy Of Bank Statements (Student/Co-Borrower)/Gas Book

Income Proof: Copy of latest Salary Slips/Form16 (Co-Borrower),Copy of latest 6 months bank statement of the borrower(s), Copy of updated ITR/ITR Assessment Order of 2 years(Co-Borrower), Any asset or liability documents (If applicable)

Merit Proof: Copy of scholarship(If applicable)/Copy of latest merit certificates (10th/12th/GRE/TOEFL/etc), as applicable/Copy of foreign exchange permit(If applicable)/Proof of admission to foreign university with course details/Statement of Expenses

Additional Requirements: Duly filled application form/Passport sized photographs (2)/Signature proof