How to Get Education Loan | How to Apply Education Loan Online 2023
How to Get Education Loan: Education is an investment that secures your future. But money is needed to get a good education. Sometimes you do not have enough money to get admission in your dream college. In such a situation, education loan can be a helpful medium.
What is Education Loan?
Education loan means that you borrow money from a bank, which you have to pay back in installments (EMIs) every month. In this way, you do not have to pay the entire fee in one go, and you get time to pay the money only if you get a job after completing your studies.
Benefits of Education Loan
Low Interest Rate: The interest rate (interest) of education loan is less than normal loan, because the government (government) provides subsidy (subsidy) on education loan.
Tax Benefit: Deduction (deduction) is available in Section 80E of the Income Tax Act 1961 of Interest (interest) on Education Loan, which reduces Tax Liability (tax-payable).
Moratorium Period: Education Loan has Moratorium Period (Moratorium), meaning Course Duration (course) + 1 Year or 6 Months After Getting Job (6 months after getting job), whichever is earlier ( First), EMI Start (Start).
Flexible Repayment: Repayment Tenure (period) in Education Loan can be between 5 to 15 Years (years), EMI Amount (amount), Course Fee (fee), Interest
Eligibility Criteria for Education Loan
To get an education loan, you have to fulfill certain eligibility criteria. These norms may differ from bank to bank, but some common norms are:
- Citizenship: You must be an Indian citizen.
- Age: Your age should be between 18 to 35 years.
- Admission: You must have got admission in a recognized Educational Institute in India or abroad.
- Course: You must have done Graduate/Postgraduate Degree (Graduate/Postgraduate Degree) or PG Diploma (Postgraduate Diploma).
- Academic Performance: You must have obtained at least 50% marks in HSC (12th) and Graduation.
- Repayment Capacity: Your Repayment Capacity will be assessed as per the guidelines of the Bank.
How to Apply for Education Loan?
To apply for Education Loan, you have to fill the Online Application Form on the website of the Bank. In the Online Application Form, you will have to fill Personal Details, Course Details, Loan Details, Collateral Details, Co-applicant Details, Income Details (income details) etc. Have to provide. After Submitting the Online Application Form, the Bank’s Representative will Contact.
Can I get education loan without salary slip?
Education loan is a type of financial aid that helps students pursue higher education by covering their tuition fees, living expenses, books and other related costs. Education loan can be availed from banks, non-banking financial companies (NBFCs) or government schemes.
One of the common eligibility criteria for education loan is to have a regular source of income and a good credit score. This is to ensure that the borrower can repay the loan in time and without defaulting. However, some students may not have a salary slip or a formal proof of income, either because they are self-employed, freelancers, or working in the informal sector.
In such cases, can they still get education loan without salary slip? The answer is yes, but with some conditions and limitations. Here are some of the possible ways to get education loan without salary slip:
Co-applicant: A co-applicant is a person who jointly applies for the loan with the student and shares the responsibility of repayment. A co-applicant can be a parent, spouse, sibling or any other relative who has a regular income and a good credit history. The co-applicant’s income and credit score will be considered by the lender while sanctioning the loan.
Collateral: Collateral is an asset that is pledged as security for the loan. If the borrower fails to repay the loan, the lender can sell the collateral and recover the money. Collateral can be property, fixed deposits, shares, mutual funds or any other valuable asset. By providing collateral, the borrower can get education loan without salary slip or co-applicant.
Government schemes: Some government schemes offer education loan without salary slip or collateral to students from economically weaker sections or minority communities. For example, the Central Scheme for Interest Subsidy (CSIS) provides full interest subsidy during the moratorium period for students from economically weaker sections who pursue professional or technical courses in India. The Padho Pardesh Scheme provides interest subsidy for students from minority communities who pursue higher education abroad.
However, getting education loan without salary slip also has some drawbacks and risks. Some of them are:
Higher interest rate: Since the lender is taking a higher risk by lending to a borrower without salary slip, they may charge a higher interest rate than usual. This will increase the overall cost of the loan and the monthly instalments.
Lower loan amount: The lender may also sanction a lower loan amount than required or desired by the borrower without salary slip. This may affect the quality of education or force the borrower to arrange additional funds from other sources.
Default risk: If the borrower without salary slip fails to repay the loan on time or defaults on it, it will affect their credit score and future borrowing prospects. It will also affect the co-applicant’s or collateral’s credit score and value.
Therefore, getting education loan without salary slip is possible but not advisable. It is better to have a regular income and a good credit score to avail education loan at favourable terms and conditions.
How to apply education loan online
If you want to apply for education loan online, you have several options to choose from. Here are some of the websites that offer education loan online in India:
Vidya lakshmi: This is a portal that allows you to view, apply and track your education loan from 43 banks and 137 loan schemes. You can also search and apply for scholarships through the National Scholarship Portal.
HDFC Bank: This is a bank that offers education loan up to Rs.150 lakhs with preferential rates for top ranked colleges and universities. You can also avail loans without collateral for select institutes and get tax benefits under Section 80-E of the Income Tax Act 1961.
ICICI Bank: This is a bank that offers education loan for domestic and international institutes and courses. You can also apply through the VidyaLakshmi portal.
Tata Capital: This is a non-banking financial company that offers education loan with flexible repayment options and minimal documentation.
You can visit these websites and fill up your basic details to get started with your loan approval process. You may also need to submit some documents such as academic records, admission letter, income proof, etc. depending on the lender’s requirements.
Education loan is one such facility which helps you to get the education of your dreams. For this you have to fulfill some Eligibility Criteria and submit some documents. You can get education loan for any type of course in India or abroad.
You should also know about the interest rate (interest rate) of the education loan as well as the repayment period (repayment period). Tax Benefit (tax exemption) of interest is also available on Education Loan.
With Education Loan, you get freedom from Financial Burden and you get a chance to get Quality Education. Education Loan (Education Loan) helps in your Career Growth (Career Progress) and you get Better Job Opportunities (Better Job Opportunities). With Education Loan, you improve Self-Confidence and you get Financial Independence.