Education Loan After 12th, If you aspire to study abroad after 12th or if you want to pursue a course which seems to be a bit price, then you definitely need to know about the educational loans or scholarship after 12th in India. These study loans can prove to be a huge relief for you, in such scenarios.
Unfortunately, there are not many students who are aware about study loans. The only source of some information can be received from the internet that too in a scattered way.
So we have brought to you everything that you need to know about educational loans and aspects related to it, along with the list of the banks that provide these loans.
What are educational Loans?
These are study loans provided to the students to pay off their study related expenses like the tuition fee, the boarding-lodging or the text books etc. These loans are comparatively lower on interest rate and the repayment terms are also easier for students to fulfil. The education cost is rising every day. That is the reason why students incline towards study loans to complete the studies with.
In Indian system of education there are mainly three subject streams to choose from. That is Science, Commerce and Arts. Under all these three streams there are numerous courses after 12th to choose from; like, Bachelor of Medicine and Bachelor of Surgery (MBBS), Bachelor of Dental Science(BDS),Engineering, LAW, Hotel Management, Management Courses, animation, Fashion Designing, Journalism etc. Not all the courses are affordable for everyone. In such scenarios, study loans come as a rescue.
Loans can be applied for graduate as well as post -graduate levels.
Who Gives These Loans?
These study loans are given by different banks. The government of India has made out a comprehensive frame with reserve bank of India and bankers association of India. There are many banks in India that follow these guidelines and provide the loans to students. Other Government bodies as well as some NGOs are also the sources to get a study loan.
We have also compiled the list of the banks for you that provide loans to students for various courses.
1. Andhra Bank
2. Bank of India
3. Punjab National Bank
4. Oriental Bank of Commerce
5. ICICI Bank
6. CREDILLA Loan Scheme
7. United Bank Of India
8. Union Bank Of India
9. Corporation Bank
10. Central Bank of India
11. Punjab And Sindh Bank
12. Bank of Baroda
13. HDFC Bank
14. Syndicate Bank
15. Allahabad Bank
These are some famous banks of India that you can take in account to apply for the study loans.
Can I Get A Study Loan After 12th?
The affordable government study loans are aimed to provide financial support to every student who deserves and cannot pursue studies because of lack of funds. If you are in need of some funds that can help you to continue your studies, then you can also apply for these Affordable Study Loans. This can be done either after 12th or at any stage of pursuing higher studies.
The bank responds with a decision within 15 working days from the date of receiving your application. For an easy approval, this application should be complete without errors.
Can I Get Educational Loan To Study Abroad?
If you aspire to study abroad and need funds for that you can also apply for these educational loans. The quantum of finance for abroad studies is as much as 20 lacs. So you can easily plan your abroad studies with it. Above 4 lacs the margin money is 15 percent to study abroad. Also, if you want to study abroad you can also get a loan on campus once you get registered for the course. To your surprise the general level of rate of interest is lower in countries like UK and US.
Few Things to Consider Before Applying For It?
Before you apply for the study loans you should be well-versed with the following terms and guidelines to save your time later. These are as follows-
Student Eligibility – The eligibility criteria is an important thing to consider before applying for an educational loan. This will help you to know all the benefits are eligible for while applying for it. The eligibility include the Indian Nationality, your scores in entrance exams after 12th, etc. You can check about these eligibility criteria in the book what to do after 12th, written by Harsh Malik.
Rate of Interest – The rate of interest is connected to the base rate and that is decided by the bank and revised time to time. Some banks give concession for a girl student in the interest rate by up to 0.50%.
Tenure of Loan – You can get a loan of 7.5 lacs and above for up to 15 years. However if at any point in time you want to pay back the whole amount in the first year after getting the job, that will not help you to save rather the banks will fine you against not sticking to instalments. So keep these essentials in mind before going ahead with loans.
Minimum Age – The minimum age is also a criterion to be considered. There are some banks that have no such restrictions however there are some which follow a strict guideline for it. Generally the study loan is given to 15 to 35 years old students applying for a graduation or a post graduation course. Next question that stirs your mind is what all costs does it cover? We sure will tell you that.
Expenses Considered for Loan – There are certain specific expenses that are covered by the study loans. These can be the fees to school , college or hostel, the exam fee, library and laboratory fee, books, uniform, instruments, equipment, caution deposit, travel expenses, insurance cover etc. These expenses depend upon the bank that approves your study loan. Next comes the security that you need to pay against the loan.
Security – There is generally a base amount on which you don’t have to provide any security. But above that you might be asked to provide a suitable third party guarantee. On higher amounts, these securities can be in the form of building, land, public sector bonds in the name of student or parent or guardian, etc.
While applying for the educational loans you will be asked to submit several documents. That comes next in the list.
The Documents Required While Applying for It – There are different documents that support your loan application a great deal and you are asked to submit them by any bank. These documents are:
1. Letter of Admission
2. Completed Loan Application form and photographs
3. Detailed breakup of the cost of the course you are applying for
4. Your mark sheets and pass certificates of senior secondary and higher secondary or degree courses.
5. PAN and ADHAR card of student ,parent or the guardian
6. Proof of residence
7. Proof of Identity
8. Student’s or guarantor’s bank account details for last 6 months
9. Statement of liabilities and assessment of parent or guardian
10. Proof of Income of parent or guardian
The Repayment – The halt period for repayment is generally +1 year or 6 months after getting the job. The parent or the guardian is generally considered to be the co-applicant or the primary debtor in the world of educational loans.
Before applying for these loans you should compare and check all the given parameters like interest rate, repayment method and duration etc to make the best out of these loans.
To understand the above mentioned points thoroughly you can refer to ‘what to do after 12th?’ written by Harsh Malik also give some tips regarding career guidance. The book gives detailed information on how to apply for the study loans and scholarships as well.