Education loan: Basic info
Education loan is made to support the students of India. It is a known fact that education can be both difficult and expensive, and therefore this loan is made to cover all your expenses for the education. This means that you can pay for your books, college tuition fee, and other charges.
This loan is also available to students that study abroad. They can even get a bigger amount because college expenses are bigger in other countries.
The majority of banks in India support female education by offering different benefits with education loan. This is another reason why you should choose this loan if you need extra money to cover your educational expenses.
How an education loan can help you with your financial issues?
This loan has many advantages. When it comes to loans, the first thing that we must mention is interest rates and repayment method.
You should apply for this loan because of its low interest rates. It doesn’t matter which bank will you choose, every education loan scheme has low interest rate. This is because students cannot afford high interest rates that are charged in case of other loans.
Still, many people will choose personal loan over education loan. This is a wrong choice because the personal loan has high interest rates. A student will not be able to afford it and the situation will get even worse. The same goes for repayment process.
If you choose education loan in Mysore, you can sleep peacefully. The applicant has no obligation to repay this loan until he or she has completed his/her education. Many banks in India may also offer extra time so that you can find a job and then start repaying the loan.
This is not the case with personal loans. The repayment of these loans will start soon after you receive the loan amount. Many students will not be able to keep up with the repayment pace, and it will end in a financial disaster.
Education loan in India is designed to cover college expenses, and that makes it the best loan choice for education purpose. Eligibility of education loan covers all colleges in India. This means that any student can become an education loan applicant.
Things to keep in mind while applying for an education loan
Various banks in India are offering education loan schemes. These schemes are similar but there are some differences. The major difference is in the documents that you need to submit. Each bank requires different set of documents. When you decide to apply, you will need to choose your bank and then be informed about documents that you need to submit. The documents usually include:
- Income proof
- ID proof
- Qualification certificates
You can also create a list of all your expenses. This will help with the loan amount calculation, and you can use it to keep a track of your money.
Education loan is a good thing for your credit history. This loan creates an image of a serious and reliable person who invests in important things. Every bank will look positively at this, and you can get lower interest rates on some other loans that you apply for.
Education loan interest rates in Mysore
Education loan in Mysore is offered by almost every bank. Each bank has a different loan policy, and each bank has a different interest rate. Some of the education loan interest rates that you should check are:
- Axis Bank: Interest Rates starts from 15.00% and it can go up to 17.50%.
- HDFC: Interest Rate goes from 9.50% to 15.25%
- Federal Bank: Interest Rates can go from 9.72% to 15.32%
Banks offering a good education loan scheme
You can find good options for education loan schemes in Mysore at:
1. Punjab National Bank:
- Interest Rate can range from 9.40% to 11.90%
- Margin of 15% exists only for loans over Rs 4 lakhs
The longest duration of tenure can be 15 years
2. ICICI Bank:
- Interest Rate is 11%
- The maximum amount that students in India can take is Rs 10 lakhs
- The maximum amount for studying abroad is Rs 20 lakhs.
You need to pay a margin if you want to take a loan more than Rs 4 lakhs
3. Oriental Bank of Commerce:
- You can take up to Rs 10 lakhs for studying in India and Rs 20 lakhs for studying abroad
- Interest Rate can range between 9.40% and 9.90%
5% margin for amounts over Rs 4 lakhs
4. Kotak Bank:
- Interest Rate starts from 11.5% and it can go up to 24%
- The maximum possible amount is Rs 10 lakhs for students in India, and Rs 20 lakh for students abroad
- Small processing fee of 2% exists
There is another way to apply. You can do it online by visiting Paisabazaar.com. This website can make you aware of all the possible education loans in Mysore and in India. It can be used for other types of loans, too.
To apply, you will have to enter information like:
- Your personal details
- Your educational details
- Your income details
It’s completely similar to the regular application procedure; the only difference lies in the fact that you save your time using Paisabazaar. The whole procedure will take a maximum of 10 minutes.