An education loan is a type of loan specifically designed to help cover education costs. Like other types of loans, education loans typically involve borrowing money and then repaying it over time, usually with interest.
Best education loans can come from various sources, including the federal government, private lenders, and even schools. The type of loan you qualify for will depend on factors like your credit history and income. Let’s see some of the best banks for education loans in India.
Best Banks for Education Loan
Eligibility for Taking Best Education Loan in India
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Nationality
Indian citizens
Overseas Citizens of India (OCI)
Non-Indian Residents (NRIs)
Students who want to study in India and were born to Indian parents overseas
Persons of Indian Origin (PIOs)
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Courses
Undergraduate programs
PhDs and Doctoral courses
Postgraduate programs
Certificate courses with 6 months or longer duration
Technical/professional/diploma courses
Job-oriented courses
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Collateral
Collateral-free loans from reputable lenders up to Rs. 7.5 lakh
Collateral-free loans up to Rs. 40 lakh from selected lenders for specific programs and institutions
Acceptable collateral: Commercial or residential property or plot, insurance, fixed deposits
Loan amount: Up to Rs.1 crore
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Documents
Mark sheets (preceding education – school/college)
Admission letter from the educational institution
Age proof
Address proof
ID proof
Signature proof
Recent bank account statements
Salary slips
ITR with income addition
Recent bank statements
Audited balance sheet
Proof of turnover
Latest passport size photographs
Completed application form with signature
Appropriate Visa for studies abroad
Importance of Finding the Best Bank for Education Loan
When you are planning to further your education, one of the most important things to consider is how you will finance your studies. An education loan can help you cover the cost of tuition, fees, and other related expenses. But not all banks offer the same terms and conditions for education loans. So it is essential to compare different banks and find the one best suits your needs.
Here are a few things to remember when looking for a bank for your education loan:
- The interest rate
- The repayment period
- The fees
- The collateral
- The loan amount
Choosing the best bank for your education loan can save money and help you get the financing you need to further your education. Be sure to compare different banks and choose the one that best suits your needs.
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