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Education is the path for students to fulfil their dreams in their minds. Quality education is of prime importance to any individual, and students go the additional mile to realize that. However, the monetary value of education has increased recently, and choosing an education loan appears to be the only best solution. It is a loan that students apply to fulfil the monetary needs to finish their course.
Several banks and NBFCs in India offer them at competitive rates to educate the innovators and leaders of the future.
Now that we know what this loan is about, let us look at its intricacies. Banks and NBFCs have made it simpler to avail a student loan in India, with transparent fees and procedures. All this has made students believe that they have the proper support to chase their dreams.
The education loan eligibility varies from bank to bank, but there are certain fixed criterias:
Indian citizens only.
Candidates must have secured admission or been invited to the approved university for a degree or diploma course.
Ought to have completed 10+2 (12th standard) for an undergraduate course and degree for a postgraduate course.
UG or PG degrees must be from reputed colleges/universities recognized by UGC/Govt./ AICTE/AIBMS/CMR.
Candidates may pursue ICWA, CA, CFA, or other similar courses.
Candidates may pursue courses in institutions like IIMs, IITs, IISc, XLRI, NIFT, and NID.
Regular degree/diploma courses, akin to aeronautical, pilot training, shipping.
Suppose the diploma is being pursued in India. In that case, it must be approved by a regulatory body in India like the Directorate General of Civil Aviation, Nursing, UGC, etc.
KYC documents
10th, 12th, graduation, and entrance exams marksheets
Admission letter
Fee structure
Certain cases may require co-applicant KYC and income proofs.
Certain cases may also require additional documents beyond this, but it is up to the lender.
The amount that you wish to avail will also depend upon the course you want to pursue along with the grants and scholarships. Banks usually set the bar at Rs. 50 lakhs for domestic students and up to Rs 1 crore for international students. The tenure of loan payment varies from bank to bank and on the amount of loan you have chosen to avail. Some lenders give a 6-month grace amount once the course has been completed to land a good job and begin the reimbursement method. The grace period is usually decided by lenders beforehand. Once you get employed within this period, you can start the repayment process within a set number of EMIs.
You can contact the bank officers, and given your monthly income, the bank officials will recommend an exact EMI. If you are comfortable with the suggestion, you can start paying the monthly repayments or negotiate for a better deal. In any instance, the maximum repayment period is often eight years.
Usually, a processing fee is pre-decided by the banks, and the candidate is informed about it once the loan application has been accepted and goes for further processing. Now that we know all the intricacies of availing the loan, let’s have a look at- why is it particularly beneficial to the students?
The loan helps students build their future. They are granted the loan to ensure that students and their families do not have to face too many difficulties building their future. As such, there are a lot of benefits of the loan to students.
It will help prevent students' families from undergoing a huge financial strain. They do not have to give up on their earlier savings or liquidate all their bonds and funds. Besides, the interest on the loan is eligible for a tax rebate beneath Section eighty E of the income tax Act 1961.
EMIs are collectible solely once students complete their study program. Therefore, you don't have to worry about repaying immediately. What's more, you'll use the repayment schedule as a guideline while coming up with your family's finances within the medium and long term.
Study abroad loans cover not simply tuition but additionally living and travel expenses, study material, a student laptop, and far more. Thus these non-fee expenses won't produce a further money burden.
Usurping the loan could be a nice chance for college students to get their education while not depending upon their families. Besides, once your kid repays a loan, they also begin building their credit history. A good credit profile can facilitate them getting cheaper loans in the future.
The education loan is supposed to help the students completely in their endeavor to achieve their dreams. Thus, expenses that can occur during a student's education are kept in mind while a lender offers the loan.
The following expenses are covered by the loan that may occur during the study of a candidate:
To apply for a loan at Rupeezo, all that candidates need to do is visit the website. Click on education loans. Follow the steps, upload the KYC documents, and we handle the rest. We are one of the best in the lending industry and has connections to all the leading Banks and NBFCs in India. We stand in providing customers with all the support they need with over 20+ years of experience. They promise to make you feel financially independent with a transparent and easy process to follow.
The documentation is simple, and the loans get sanctioned within 48 hours of applying. We also have the highest approval rate in the industry, a testament to its wide network of loan providers. The process is completely hassle-free, and once the loan application is approved, the money is directly transferred to the candidates' bank accounts. A viable proof of Rupeezo's proficiency is its happy customers that have happy smiles due to the awesome services and assistance of Rupeezo
This student loan in India is perfect for students that aspire to have a bigger and better future. No matter what situations they are in, with platforms like Rupeezo, one can be assured that there is always a helping hand out there for students to pursue their dreams.
Who can apply for the student loan?
Candidates pursuing their education abroad or within India in courses from approved universities or colleges are eligible for student loans in India.
How much loan amount can I get?
The loan amount differs from bank to bank, but for students pursuing courses within India, the loan amount is capped at 50 lakhs, while for students pursuing courses outside India, the loan amount is capped at one crore.
How much time can I get to repay the loan?
The time you get depends on the lender usually, but the maximum time you can get for repayment is eight years after the grace period given after completion of your degree.
Which documents are necessary to apply for the student loan in India?
Do I need to give collateral to avail of a student loan?
Loans availed through Rupeezo are collateral-free and are provided based on the credit history.
Upon which factors are student loans considered?
The factors are the course being pursued by the student, the student's financial capabilities and their co-applicant, the loan amount, tenure, and the country of study.
What are other expenses included by student loans?
Besides the tuition fees, a student loan also includes living expenses, books, materials required for learning, equipment, laptops, thesis, necessary school tours, and others specified by the lender.
What happens if I get the job and discontinue the course within the grace period?
If such a situation occurs, a loan cancellation request must be made. The lender will then write off the remaining loan that you have not availed of and hold you liable only for the amount that has been spent so far. But the final decision on such a situation lies solely with the lender.
For how long a time can I avail the loan?
Depending on the course and the amount required, the time of the loan is decided.
How does Rupeezo assist every student in providing education loans in India?
Rupeezo has a wide network of banks and NBFCs that it partners with. Using this wide network, we ensure that every student can avail of collateral-free education loans in a transparent and easy process.