2. QUESTIONNAIRE
For what type of education can an educational loan be
taken?
Interest rates offered by various banks
What are the costs covered under education loan?
Who is eligible for an educational loan?
What is the maximum amount that can be availed?
What security does one need to provide?
What are the documents required?
3. For what type of education can an
educational loan be taken and the costs it
covers
Loan for education in India
you can take a Education Loan for Indian education on the
following courses:
Management Courses (Full-Time) – Graduation + Post
Graduation
Engineering Courses ( Government + Private ) -
Graduation
Medicine - Graduation + Post Graduation
Masters in Computer Application ( MCA / MCM )
Architecture - Graduation + Post Graduation
Hotel and Hospitality - Graduation + Post Graduation
Agriculture - Graduation + Post Graduation
Pure Science - Graduation + Post Graduation
4. contd
loan for education in foreign countries
You can take a Education Loan for foreign
education on the following courses:
If you are an Indian resident/citizen, have got
admission for a job oriented professional /
technical courses offered by reputed universities,
MBA, MCA, MS, etc, Degree / diploma courses
like aeronautical, shipping, etc provided these are
recognized by competent regulatory bodies in
India/abroad for the purpose of employment in
India / abroad.
5. contd
Apart from the basic course fee payable to the
institution where you decide to study, the following
expenses will be covered under the loan:
Exam/Library/Lab fees
Caution deposit / Refundable deposit asked by the
institution / Building fund - supported by Institution bills /
receipts
Purchase of Books / equipment's / instrument /
uniforms
Travel expenses / passage money for studies abroad
Purchase of computers - essential for completion of the
course
Insurance
Miscellaneous expenses related to the course - like
study tours, project work, thesis, etc.
7. Repayment Tenure by various
banks
Lender. Repayment Tenure
State Bank of India 5-7 years
Axis Bank Maximum 7 years
Punjab National Bank
Loans upto Rs.7.5 lakhs : 10 years Loans above
Rs.7.5 lakhs : 15 years
Avanse Education Loan
Minimum Repayment Tenure- 12 months Maximum
Repayment Tenure- 120 months
8. Eligibility for an educational loan
You need to be a Indian resident
You should be aged between 16 - 35 years.
If you are taking a loan of more than Rs. 7.5 Lakh,
a collateral security will be required.
Co-applicant: A co-applicant is mandatory for all
full time programs. Co-applicant could be Parent/
Guardian or Spouse (if married) / Parent-in-law (if
married).
9. What is the maximum amount that
can be availed?
For Indian education , Amount upto Rs. 10 lakh
and unsecured lending upto Rs. 7.5 lakh. No
collateral will be required for loans upto Rs. 7.5
lakh
To study abroad, the maximum loan amount
you can get is up to Rs. 20 lakhs
10. What security does one need to
provide?
Security for the Loan is determined by the quantum of
loan required and the credit worthiness of the principal
borrower. At most of the banks the following types of
collateral security's are accepted:-
Residential property (house/flat/apartment/plot)
Fixed Deposit assigned to the bank
Life insurance with surrender Value equivalent to
required security coverage.
Commercial property/ Non-residential property as per
the banks policy .
12. Purpose Salaried Others
Proof of identity Passport or Voter's ID card or driving
license or PAN card or government
department ID card
Passport or Voter's ID card or
driving license or PAN card
Proof of income Latest salary slip showing all deductions
or Form 16 along with recent salary
certificate
IT returns for the last 2 years
and computation of income for
the last 2 years certified by a
CA
Proof of residence Bank account statement or latest
electricity bill or latest mobile or telephone
bill or latest credit card statement or
existing house lease agreement
Bank account statement or
latest electricity bill or latest
mobile or telephone bill or
latest credit card statement or
existing house lease
agreement
Bank statement or Pass Book
where salary or income is
credited
Last 6 months Last 6 months
Guarantor form Optional Optional
Other Documents Copy of admission letter of the Institute
along with Fees schedule, mark sheets /
pass certificates of S.S.C, H.S.C , Degree
courses
Copy of admission letter of the
Institute along with Fees
schedule, mark sheets / pass
certificates of S.S.C, H.S.C ,
Degree courses
14. Acknowledgements
I would like to thank my teacher Ms.Masarath
for giving me this opportunity to learn about
Educational loans and also for guiding me in
doing my project.
I would also like to thank my father for making
me understand the terms
“securities,collateral,surety,guarantee.”