What is Education Loan and How to get Approval

What is Education Loan and How to get Approval

These things are often searched by MBA students. The education world has completely changed into business. Here the exchange of education is less and more of money. Fee of MBA College is a huge amount for middle class family. They will marry that girl for so much money, but what to do, if the child is stubborn, he has to arrange for the money if he wants to do MBA. For this, Education Loan is the only option left. A few days ago I had a talk with a student (Bhanu Pratap) who had earlier published some posts related to GST on this blog. It is currently pursuing MBA and it has to face many problems in getting education loan. Realizing the problem, this post is being written so that if a student takes EDUCATION LOAN in the coming time, then he can easily solve the problems.

What is Education Loan ?

In today’s modern and economic era, everyone wants to get a good job or a good business after getting a good education. The Prime Minister of the country also keeps talking about promoting trade. But in this era of inflation, higher education has also become very expensive. There are also some schools whose fee is not applicable to any professional course and college fee. In some private colleges, it is not possible to give a normal course fee for middle class family. To overcome these problems, the bank is working to provide education loan.

With the help of education loan, you can get higher education abroad with the country. Almost all the leading banks in the country are doing education loans. This loan is available only for spending on education. This loan is available for all expenses related to education. It may also include a laptop hostel fee used in education. It depends on the bank and educational institution.

For What Expenses is an Education Loan?

  1. School / college fees
  2. College / school / hostel fees
  3. Examination / Library / Laboratory fee
  4. For buying essential book / equipment / computer / uniform
  5. Caution deposit / refundable deposit / building fund
  6. Up to Rs 50,000 to buy a bike (two-wheeler)
  7. Travel expenses for studying abroad (travel expenses)

How to Apply for Education Loan?

In today’s time, any person has studied so much and studied from which institution, it has a lot of meaning. After 12th everyone dreams to go to a good college or study abroad. But, even after getting talent, this study of some students is not possible due to the constantly getting higher studies. If you also have such a dream, do not be disappointed. Rather, banks can resort to loan for further studies. With education loan, you can fulfill your dreams. This article is completed to know how and on what documents the education loan will be obtained.

Almost all banks offer education loans. However, it is not easily found and if you get the right amount of loan, it may have to be a little hard work. So keep in mind the things that we are telling you, then your efforts may be reduced.

Who can take Education Loan

The following points can be considered to find out who has the eligibility to take a loan.

  1. Education loan can be given to any student, whose age is between 16-24.
  2. His citizenship also matters, if that citizen takes a loan from India, and is not an Indian, then his loan application will be rejected.
  3. Third and the most important point, it says that if the loan applicant has confirmed his / her admission in an institute, then only he / she will get a loan, otherwise he / she will not be considered a right to take a loan.
  4. Education loan for school, college and hostel fees, exams, library and laboratory fees, books, equipment, instruments, uniforms to buy, travel expenses for studying abroad, road expenses, study tours, project work, thesis etc.

Bank Investigation

Before granting education loan, the bank ensures he can repay. Even before this, many posts related to loans have been published. One thing in all is common. Before giving a bank loan, only after ensuring how the bank will get the loan along with the interest. The loan is usually given to the person who has the ability to repay it. The student’s parents or students can make loan repayments after finishing their studies. All banks have their own rules and regulations for the repayment of loan. Some banks require immediate repair as soon as the study is completed, while some banks give a gap of a few years after completion of studies. So that after getting the job, you can easily give EMI.

Bank Terms and Conditions

After taking an education loan and after exiting all the above mentioned areas, the bank places some conditions in front of the applicant, which are as follows.

  1. Be on the Recognized list of Institute Bank. This means that the institute is accredited and the institution has confirmed your admission. That is, the institute should be ready to teach you there.
  2. The student’s academic record is a very important subject matter. First of all, the bank wants that the student who is being given the loan, should be really worthy and worth it. To find out, the first sight goes to his academic record, what he did and where he performed. Is he capable of further study? All these things depend on his academic record.
  3. The third condition is that there has never been any gap between the studies. Meaning when he goes to take a loan, he has not kept a gap. Because the gap often evokes a bad attitude.
  4. The fourth condition is that the parents have a fixed income source, ie they are earning a fixed income. So that in these cases if the student fails to repay the loan due to any reason, then his parents can repay the loan.

Education Loan Document List

  1. Primary documents are most important, in which you can keep an identity card and an address proof.
  2. Along with this, the identity card, Aadhar card and address proof of the parent or guardian of the person taking the loan are very much required.
  3. A document is also necessary to prove the relationship of the borrower with his parents or guardian. An identity card or an affidavit can be kept in it.
  4. You should have all the documents related to the institute in which you want to take a loan. Like the admission letter given by that institute, the loan assessment letter.
  5. Those who want to study in foreign countries, those loan applicants need some different documents. Which includes the letter of admission letter of the institute, along with the passport and visa.
  6. Often the loan is a large amount, so it is very important to have a bank account with the applicant. This bank account will work even if it is not in the bank account of the borrower. But if it is in it then it is much better.

Bank Guarantor

  1. Most banks do not require a guarantor for loans up to four lakh rupees. But if you want more loan than this, then a guarantor will be needed. The guarantor can be the guardian or relative of the borrower, whom the bank can trust.
  2. Normally, banks provide loans between 5 to 15 lakh rupees for studying in India and 20 to 25 lakh rupees for studying abroad. Loans ranging from 4 to 7.5 lakhs can be obtained only with the help of guarantors. But for loans of more than this amount, banks ask for property papers or similar documents as security.

Go to the bank with all these procedures and documents and meet the branch manager with the loan form. In some cases, the bank does not give loan even if all the documents are there. There are many reasons for this.

  1. The place where you are applying Education Loan can be Black Listed.
  2. The bank has not been authorized to give such a loan.
  3. Some people have not already paid for the Education Loan.
  4. The one who has been made the Guarantor should be the defaulter in the eyes of the bank.
  5. Civil score of parents is not correct.

Education Loan Key Points

  1. The loan payment will have to start one year after the completion of the course.
  2. There is no need to make loan payments during studies and up to one year after completion of studies.
  3. Interest will continue to be added to the principal amount.
  4. The loan repayment period is 15 years.
  5. You can also repay the loan before time.

The first problem with Bhanu was that the place where he was applying Education loan was Black Listed. But he has got the loan, in the next post it will be told in detail about how he got the loan.

Conclusion

A loan means a loan and many times a friend or relative has to seek help for it. When friends or relatives want to know about when you will return before giving loan, then it is the bank which has no relation with the borrower. The bank wants to know when and whether able to repay the loan along with interest before giving loan anytime. It is a big deal to return a loan more than taking a loan. If you have any question related to loan, then you can ask in the comment box.

Author: Himanshu Meena

Motivated Blogger !!! Exploring Opportunities Everywhere !!!

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