Education Loan SBI Education Loan

About This Video :

Education loans are offered by various banks to help students fund their higher education. The loan can cover expenses like tuition fees, hostel fees, books, equipment and other necessary costs related to the course. Here’s a general overview of education loans in India:

1. Eligibility Criteria
Eligibility for an education loan depends on the following factors:

Applicant: The primary applicant should be an Indian citizen and must have secured admission to a recognized course at a reputed institution (either in India or abroad).
Age: Typically, applicants should be between 18 and 35 years of age.
Course: The loan is usually offered for undergraduate, postgraduate, or professional courses such as engineering, medical, management, law, etc.
Co-applicant: Usually, a co-applicant (like a parent, guardian, or spouse) is required. The co-applicant must have a stable source of income.
Creditworthiness: Banks assess the financial stability of the co-applicant and the student’s academic performance.

2. Types of Education Loans
Banks in India offer different types of education loans, depending on the applicant's need and the course of study. The major categories are:

Domestic Education Loan: For students planning to study within India.
International Education Loan: For students pursuing education abroad.
Vocational/Skill Development Loans: For skill-based training programs or vocational courses.
3. Loan Amount
The loan amount typically varies depending on the course, the institution, and the applicant’s eligibility.

4. Interest Rates
Interest rates on education loans in India can vary based on the bank and loan amount, and typically fall between 8% to 12% per annum.

Subsidized Loans: Some schemes, like the Pradhan Mantri Vidya Lakshmi Yojana, offer interest subsidies for economically weaker sections.

5. Repayment Terms
Repayment of the loan typically begins after the completion of the course, and there is usually a moratorium period of 6 months to 1 year after the course completion. This is the time given to the student to secure a job before starting the repayment.

6. Security / Collateral
Loans up to ₹4 Lakhs: No collateral is required for loans up to ₹4 lakhs.
Loans above ₹4 Lakhs: Collateral may be required in the form of property, fixed deposits, or a third-party guarantee. For loans above ₹7.5 Lakhs, banks usually require tangible collateral security.


Popular Banks Offering Education Loans in India :

State Bank of India (SBI)
HDFC Bank Education Loan
Axis Bank Education Loan
ICICI Bank Education Loan
Punjab National Bank Education Loan
Canara Bank Education Loan
Bank of Baroda Education Loan
Union Bank of India Education Loan
Kotak Mahindra Bank Education Loan
Many More Banks