How to Get an Education Loan for Your Higher Studies in India & Abroad Studies?

For a whole and prosperous life, one needs to be well educated. But education is becoming more and more expensive. It already costs a lot of money to attend reputable institutions, even if a student is brilliant and capable.

As a result, not all parents can afford to send their children there...

Parents who really wish to provide their children with the greatest education possible do so by making long-term investments.

However, even with this, one could still face financial difficulties. Therefore, an education loan in India is essential in this situation.

But What is an education Loan? How does an education loan work? How to apply for an education loan online?

If you are also looking for answers to the above questions, this blog is for you!

In this blog, we'll discuss everything you need to know about education loans in India, like how to apply, eligibility criteria, who can use them, some FAQs, and much more.

So, let's get started!

Why is an education loan becoming necessary for higher education?

Education loans are now a must as the tuition fee for engineering and medical universities have risen to the point that it is no longer feasible to pay the full fee.

That's why education loans have become a necessity. A student can simply enroll in a reputable college in such a situation by obtaining an education loan in India.

Moving ahead, let's discuss

Types of education Loans in India

Based on the location, there are two types of education loan process:

• Education loan in India - Individuals can apply for this form of the loan if they wish to pursue their education in India. Only applicants who are accepted into Indian educational institutions and who meet all other requirements set forth by the lender will have their loan requests approved.
• Education loan for abroad - These loans assist students in realizing their dream of attending an abroad institution to pursue their chosen course of study. Students who want to study abroad can apply for a loan that will pay for their airfare, lodging, and tuition as long as they meet the requirements.

Moving ahead, let's discuss,

The features and benefits of education loans in India!

The following are some:

• For NRI students, the maximum loan amount is Rs 30 lakhs, while for others, there's no limit on the loan amount.
• The primary benefit of an education loan in India is that it can be used to pay for various things. It covers all the costs associated with living as a student, food, college fees, study materials, laptops, library fees, and much more.
• Students have a wonderful opportunity to build their credit history when they take on loan repayment responsibilities. By making EMI payments on time, the student can retain consistency and discipline and build a positive CIBIL report.
• The education Loan interest rate is typically lower than those of other loan types, such as personal loans.
• In accordance with section 80E of the Income Tax Act of India, 1961, you are entitled to tax benefits on interest paid on an education loan.

Which courses are eligible?

As long as the course is offered by an approved institution or has a high reputation, students can choose to enroll in nearly any course they want to. The types of courses that you can often apply for with a loan includes:

#1. Courses covered for education loans in India

• PhD courses
• Graduation/PG/Diploma courses from reputed institutions & universities
• Technical/Professional / Management courses

#2. Courses covered for education loan abroad

• PhD courses
• Graduation/PG degrees offered by reputed institutions/universities
• Certified degree courses offered by CIMA, London, CPA, USA, and others

As you've seen the features, benefits, and types of education loan in India; now, let's move forward and discuss,

How to apply for an education loan online in India?

There are some ways to apply for an education loan online in India.

• Online application - With all the required documents attached, the application form can be completed online, followed by online submission. In order to assist with the application process, some banks may also offer virtual assistants.
• 2.Offline application - This can be done by going in person to the nearest branch office with all the necessary paper and an application that has been properly filled out.

After you submit your loan application, the bank will start the process by checking your paper, assessing the course of study you want the loan for, and determining what kind of collateral you can offer. Following that, the bank will notify you.

What documents are required for an education loan abroad & in India?

When applying for an education loan, the following documentation is required:

• Educational certificates
• KYC documents
• Admission letter
• Fee Structure
• Income proof and KYC documents of co-applicant

In addition to the aforementioned, additional documents may be required in some cases

Moving ahead, let's discuss,

Top FAQs

Following are some commonly asked questions about education loans for abroad India

What are the fundamental requirements for an education loan abroad?

The following criteria must be met to eligible for an international education loan:

• Must be a citizen of India
• A parent or guardian must be present
• A letter of acceptance from a reputable overseas university is required
• For the loan to be disbursed, the borrower's financial situation must be steady

Who can apply for an education loan in India?

The primary borrower is a student. An applicant's co-applicant may be a parent/ spouse.

To whom is the loan being offered?

It is made available to those who want to study in India or pursue their studies abroad. The most significant sum offered for studying both in India and abroad varies.

What is an education loan calculator, and how to use it?

The smart tool used to compute your monthly EMI payment to the lender is the education loan calculator. To calculate your EMI and plan financially, use the slider to enter the parameters Principal amount (P), time (N), and rate of interest.

Conclusion

We hope you found the information on education loans in India on this blog to be useful.

Since this is most people's first loan, getting an education loan might help you establish a strong credit score. If you pay back the education loan on time without making any late payments, getting other future loans will also be simpler for you.

It is really simple to apply for an educational loan thanks to the flexible web and mobile apps that Union Bank of India has!

You can now apply for a loan of up to any amount and 20–30 lakhs for NRI students online and from the comfort of your home using these Union Bank of India web and education loan app portals. You can even use our education loan calculator to quickly determine how much of a loan you can afford to take based on your ability to repay it.