Financial Aid (Bank Loans)
Most banks in India offer attractive Educational loan to students for completing their higher studies. The student seeking admission to Graduation, Post-Graduation and other courses from U.G.C or Govt. Recognized institutions can apply for these loans.
The educational loan not only covers college fee, hostel fee, purchase of books, library charges, purchase of computers etc. but also covers travels expenses for international education.
Mentioned below are some basic guiltiness and suggestions for those intending to apply for an educational loan. These are by no means the only points to be taken into consideration and are purely for your knowledge and reference. VEDA cannot be held responsible where these change or new ones get incorporated.
- Do not keep interest rates as the sole criterion while selecting a bank. Those with lower interest rates may sometimes take longer to process your loans and may have hidden charges.
- Make sure that you have the relevant document authenticated and ready for the quickest dispersal of the loan.
- Always keep options open. Do not restrict yourself to any one bank. Speak with many and depending on what they offer, go for the one which suits your needs and offers you the best deal.
- They say the devil is in the details. Go through the fine print very, very carefully. These contain the all-important terms and conditions which can make or break the best of deals. Do not overlook even a single point as this may jeopardize all your hard work while applying for a loan.
- Most banks offer loans ranging from INR 10 to 15 lacs for education in Indian universities and INR 20 lacs for education in foreign universities though these figures may change from time to time.
- Interest rates on educational loans range from 8.5% to 14%. These may not be the only charges. Find out from the bank/ loan giver for other charges and then make an informed comparison.
- Most banks decide the quantum of loan to be disbursed based on the course being applied for as also the applicant’s background and family’s annual income.
- The fairer sex in most cases gets a healthier rate of interest while applying for an educational loan.
- Mentioned below is a list (by no means the only ones) of banks you can approach: