What is the procedure to apply for an education loan procedures and how do they benefit students?

In 2016, the average education inflation in India was at 10 to 12%, and these expenses are increasing at a fast pace even today. However, skyrocketing education costs need not become a roadblock in seeking quality education yourself or providing it to your children. Whether you are eyeing a reputed university in the country or a college overseas, you can get an education loan and realise your dreams without any compromises.

Many lenders offer education loan in India for study abroad too. The student loans for studying abroad fund a wide variety of graduation or post-graduation courses whether full-time, part-time or vocational, in almost all the fields that you could choose. Here’s more about an education loan and its benefits.

Benefits of an education loan

• An education loan keeps you from dipping into your savings and disturbing other financial goals such as home purchase, children's wedding, or retirement
• The loan amount covers more than just the course fee; it also covers other expenses related to examination, books, laboratory, hostel, travel, and more
• An education loan offers tax benefits towards interest paid under Section 80E of the Income Tax Act. You can claim this deduction for up to 8 years
• An education loan has a moratorium period that refers to a holiday before repaying the loan. As a borrower, you will get a moratorium period between 6 months to 1 year starting from the date of completion of a particular course. In this period, you can secure a well-paying job and save enough to start repaying the loan
• Timely repayments of the loan enhance your credit score, which, in turn, helps you get other loans easily

Now read more about how to get an education loan in India to realise your dreams conveniently.

Also Read: How to apply online for a student loan in India

How to get a study loan?

The procedure to apply for an education loan varies across lenders; however, these are the common steps

• Check the lender’s eligibility criteria relating to your residential status, age, academic level, and others. Work on shortcomings, if any, and only then apply for a loan by submitting a duly filled application form
• Next, you will need to attend a personal discussion with the lender, where you may have to answer questions relating to your academic performance, the course you want to study, the institute where you want to study, and others. The lender may also question you about the course’s potential of generating income as it directly impacts your loan repayment ability
• In the case of education loans, lenders demand an offer letter from a university as a primary document. Also, depending on the lender, you may have to pledge collateral if your loan amount exceeds a certain limit
• If you are a student, lenders require you to add a guarantor, your parents, or guardians. The lender will then check their credit score and history and only then decide whether to approve the loan or reject it
• If you are a student and the primary applicant for the loan, the lender will ask you to sign a promissory note of repayment to them
• Finally, if the lender is satisfied, they will ask you to submit additional documents and post-dated cheques before disbursing the loan

Now that you know how to take education loan, you may realise that certain restrictions do apply to this loan category. Whether you are looking for an education loan for an MBA abroad or want to study fashion design in India, you can also fund your education by paying a loan against your property. This way, you can get access to a high sanction depending on your property value. Also, since it is a secured loan, lenders charge comparatively lower interest rates than secured loans.

Consider applying for a loan against property with reputed lenders like Bajaj Finserv to access to amounts worth Rs. 5 Crore and more via quick approval thanks to the simple eligibility criteria and minimal documentation. The money is disbursed directly to your bank account in just 3 days* by Bajaj Finserv so you can meet urgent education costs with ease. You can also avail of this loan on easy terms to make multiple withdrawals to meet recurring education expenses each term and pay interest only on the withdrawn amount. To enjoy customised deals on loans and other financial services, check your offers from Bajaj Finserv and finance your dream education with ease.

Apply For Education loan for abroad