What is the eligibility for getting an education loan?
You must be an Indian national in the age group of 16-26, (or any other range specified by the bank). A good academic record (first class throughout, with no gaps or breaks in education, etc.) and your parents/ guardian should have a regular source of income so that they are able to repay the loan if the need arises. For a loan below Rs 4 lakh the requirement for the parents/ guardian (guarantor) to have sufficient income is not insisted on by the public sector banks. For loans above Rs 7.5 lakh the banks may also require security such as house or a collateral security. Besides, the course and the institution you have applied for, must be a recognised one.
What expenses are covered by a student loan?
You can take a student loan to finance a range of expenses for your education, like fees payable to the college, school or hostel, including tuition fees, examination, library, laboratory fees, purchase of books, equipment, instruments and uniforms, caution deposit, building fund, a refundable deposit supported by the institution’s bills or receipts. Besides, travel expenses, buying computers are essential for completion of the course and other expenses needed to complete it, like study tours, project work and thesis. Living expenses can also be covered.
How much of an education loan can I get?
The maximum loan amount for an education loan varies from bank to bank, depending on the course and the educational institution. Many banks have a margin criterion for their education loan, which means that they will provide between 75 per cent and 90 per cent of the total cost of the course.
Harsh Roongta is CEO, Apna Paisa Pvt. Ltd., a price comparison search engine for loans, insurance and investments. He can be reached at email@example.com