Finance

Personal Loan For Students

A student loan is blessed of God who wants to study but struggling for financing help. While you are studying, the bank will pay for your education. It is the concept come from education loan in India. It is a great boost for banks as well as for your career. In India, almost all banks and financial institutions offer education loans to the students.

The loan amount depends upon the college and the course. The best advantage of an education loan is that you can pay after one year of your certification complete or after you secure a job, whichever is earlier.

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Student Loan Eligibility Criteria

To get an education loan from a bank or any financial institution, the application must need to fulfill some basic eligibility criteria. Here we listed only general eligibility criteria for a student loan:

  • The application must be the citizen of India

  • The applicant age group must be 16 – 35 years

  • A co-applicant is required for a student loan with the applicant.

  • Collateral is required for more than a specific amount provides by the banks.

  • The co-applicants salary should meet the minimum salary criteria by the banks.

  • The candidates must have to take admission before applying for the student loan.

Document required for student loan:

A specific set of document you have to submit for education loan. The documents required for the banks are almost the same. The list below shows the documents that need to be submitted for a student loan:

  • Proof of age:   Birth or school certificate

  • Proof of address: Voter ID or Aadhar card

  • Identity proof: Voter Id or PAN or Passport

  • Income proof of the co-applicant

  • Last 6 months bank statement of the co-applicant

  • Copy of admission letter

  • Guarantor’s form

The interest rate for student loan

The interest rate on a student loan is slightly higher than home loans. Thought interest rate varies from bank to bank, they generally belong to a range of 11.75% to 14.75% per annum. The intelligent students who acquire the admission in IIT or IIM can avail the student loan at a low-interest rate. Few banks allow the special discount to the female candidates on education loan.

Student loan features and benefits:

Some of the education loan features are listed here:

  • Education loan helps you to achieve your career goal by paying for studies expenses.

  • Any intelligent student can get an education loan easily and do not have strict guidelines. This is a popular loan among students.

  • Student loans are a great alternative for personal loans. The education loans are lower interest rate than a personal loan and come with easier terms and conditions.

  • The most important features of education loan are that the student loan starts repaying the loan after the course completion. You can get time until you get a job with the specific time period by the bank.

  • The student loan not only helps the borrower to pay his education expenses but also offer tax benefits. The interest paid on education can be claimed for tax exemption under section 80E of the Income-tax Act.

  • If you have an education loan in your family then you may face the problem of getting a new loan.

  • The bank requires collateral to be submitted as security against the education loan amount higher than the specified limit.

Student Loan FAQs

What percentage of amount I have to pay to sanction my loan?

The banks can give finance up to 100% of the student loan depending upon the amount. Currently, for loan up to 4 lakh, there is no margin money required.

What type of expenses are covered on a student loan?

  • Tuition fees and hostel fee

  • Exam, lab, library fees if applicable

  • Any refundable amount paid to the educational institute.

  • Cost of book, uniforms and other essentials for the course.