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You will find that doing further education in India is very expensive for many students. In a bid to assist the learners, education loans have been advanced to students who are studying under graduate (UG) and post graduate (PG) classes. To give you a clear picture of a domestic education loan, including this, here’s what you need to know about the eligibility, benefits, and the application process.
Eligibility Criteria for an Education Loan
Before applying for an education loan, ensure that you meet the following criteria:
- Indian Citizenship: Applicants must be Indian students only.
- Confirmed Admission: You must have got admission in some UG or PG course in India.
- Required Qualifications: It should be earned after passing the prerequisites that are required for entry into the program.
- Family Income: Family income should be above ₹ 3 lakh per annum Income. But this criterion does not applies if the loan amount is below ₹ 7.5 lakh.
- Minimum Loan Requirement: It should be a loan request that is more than ₹ 1 lakh Only then one can be able to find a worthy business idea.
Advantages of Education Loans
Students applying for an education loan enjoy various advantages, including:
- Collateral-Free Loan: The maximum amount of a collateral-free loan you can avail is ₹40 lakh In addition, the minimum loan amount that one can take is ₹1 lakh.
- Competitive Interest Rates: Fixed rates begin from as low as 8.1% per annum*.
- Fast Approval Process: Access to loans without much of a hassle because the process of getting a loan isn’t long.
- High Loan Amounts with Collateral: For amounts up to ₹2 crore, collateral backed business loans are offered by the banks*.
- Income Tax Benefits: Interest paid to have to be paid under section 80E of the Income Tax Act whereby individual has 100% income tax exemption on the interest paid.
Coverage of the Loan Amount
The loan amount typically covers the following expenses:
- College-Related Costs:
- Fee for examination, library and laboratory.
- Buy merchandise, tool, and attire
- Hostel and living expenses
- Additional Costs:
- Travel expenses
- Buying computer or laptop
- Overseas travel insurance
- Health insurance
Special Consideration: A loan for the educational course might carry lower interest rates and quicker disbursal depending on the institution of learning the student qualifies to join through admission and is from an NIRF ranked institution/ a reputable university.
Documents to be produced for Applying for a Loan
- Passed recently passport size photograph
- Identity proof that include the Aadhaar card, driving license, passport, voter ID, etc.
- Original college ID, admission letter or bonafide letter.
- Copies of the schedule of fees
How to Apply for an Education Loan:
- Currently, the ‘Apply Now’ button below will take you to the application process.
- Login to Buddy4Study To get the app login to Buddy4Study using your registered account information. If you don’t have an account then you can sign up using your email, mobile, or Google account.
- Access the Application Form: Once you log in you will be taken to the ‘Buddy4Study Education Loan Program’ page.
- Start the Application: To do this, click on the ‘Start Application’ button and you will be through with the process.
- Fill in the Details: Fill in all the necessary information at the online form.
- Upload Documents: Enclose the following documents mentioned above.
- Preview and Submit: Review all entered details. Thus, those details also need to be provided and after that, the ‘Submit’ button is used to finish the application.
Conclusion
Getting an education loan for UG and PG in India has now becoming very easy. There is always stiff completion on interests charged and approval is as easy as a walk in the park, not to mention the benefits that come with tax credits for these loans to enable you achieve your academic goal without the worry of how you will meet the expenses. Applying is easy – follow the steps above to start your journey towards your future today!
Consider applying now and give yourself the best head start towards enrolling with no financial hiccups!