How to Get Education Loan After 12th
About Education Loan
An Education Loan is basically a form of financial aid provided by banks and NBFCs to students to meet their expenses related to education. These loans can be availed after completing 10+2 (12th Standard) to students who want to do a professional or technical course. Education Loan covers the expenses of books, supplies, miscellaneous, cost of living, travelling, and other related expenses. This loan can be taken up as funding, reward, financing or by means of scholarships. The students, mainly the borrower, repay the loan to the lender with a rate of interest after the end of the course.
Benefits and Features of an Education Loan
- A domestic student can get a loan amount of up to 50 lakhs, and an international student can get a loan amount up to 1 crore.
- For a loan amount of up to 20 lakhs, no margin money is required. Margin money is the amount a borrower has to pay in the form of a down payment to the bank or the lender of an NBFC.
- Expenses like student exchange travel expenses (for international students), laptop (if required to complete a particular course), books are covered.
Eligibility for availing of an Education Loan
- Indian National.
- The student should have completed their 10+2 (12th Standard).
- Secured admission from an approved university/college for a degree/diploma course.
Documents Required for availing of an Education Loan
- Students mark sheet of 10th, 12th, graduation or any entrance exam given for the course.
- KYC documents.
- Admission Letter from an approved university/college.
- Fee Structure of the course.
- Co-applicant KYC and income proof documents.
Top Banks offering Education Loan
Education Loans are offered by banks in India to help students meet their academic expenses. It starts from an interest rate of 6.85% p.a. along with a repayment tenure of up to 15 years. Here is a list of banks that offers an education loan.
- Punjab National Bank
- State Bank of India
- Union Bank of India
- Axis Bank
- Bank of Baroda
- Federal Bank
- Bank of India
- Tata Capital
- HDFC
- Kotak Mahindra Bank
- Private Bank
Education loans are offered for higher education in both India and abroad.
Steps to apply for an Education Loan
Steps to apply for an Education Loan Online
- Visit the official site of the bank from where you like to purchase the loan.
- Go to the section of ‘Education Loans’ and click on ‘Apply’.
- A form will appear which needs to be filled by you to proceed further.
- Fill in all the required details and click on ‘Proceed’.
- Wait for the bank to verify your form and documents (If submitted any).
- The bank will get back to you and keep you notified.
Steps to apply for an Education Loan Offline
- Visit the bank branch.
- Inquire about the education loan, its interest rate and repayment tenure.
- Choose the perfect loan which you want to buy.
- Fill in the form provided by the bank and submit the documents required.
- Wait till the bank verify your documents and evaluate the course of study for which you wish to take the loan.
- The bank, after verifying, will get back to you for further procedures.
How to get Education Loan after 12th – FAQs
✅ What expenses are covered under an education loan?
- Tuition Fees.
- Hostel Fees.
- Insurance premium.
- Cost of books, uniform and other equipment.
- Travel Expenses for foreign students.
- Examination/library and laboratory fees.
- Caution deposit.
- Computer or laptop expenses if required to complete a particular course.
✅ What is a part payment of an education loan?
The borrower is allowed to make part payment of their loans before the start of repayment tenure that usually starts after the completion of the course or after six-month of completing the course. The applicant can choose to make a payment of the loan and repay the remaining part of the loan with a low rate of interest.
✅ Can an applicant get an education loan without collateral?
Banks need collateral to offer education loans to applicants in the form of fixed deposits, bonds, shares, property, etc. If an applicant wants to avail an education loan without any collateral, they have to use Credit Guarantee Fund for Education Loan (CGFEL) Scheme, keeping in mind to take up the loan amount of up to 7.5 lakhs only. Such education loans should be supported under the Model Education Loan Scheme of the Indian Banks’ Association. A candidate can apply for this loan through a registered commercial bank.
