In Depth Information about an Educational loan

Educational LoanBy:- Nasir Khan 8.5Date:- 11/1/2016

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?

For what type of education can an educational loan be taken and the costs it coversLoan for education in Indiayou 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

contdloan 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.

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.

Comparative interest rates

C

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

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).

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

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 .

Documents required for

taking Educational loan

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

bibliography Google Hdfcbank.com Sbibank.com Axisbank.com Rediff.com Bankbazaar.com Avanse.com Google images

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.”