The rising cost of higher education has made it quite difficult for parents to self-finance their children?s education. Viewing the potential of this market, leading banks in India have introduced a wide range of education loans to cater to the growing need. However, there are often some key differences between the application/evaluation processes followed by different banks. In the following sections, we will shed some light on how to choose and what to expect when you apply for an education loan.
Whom Can You Approach for an Education Loan?
Virtually every bank in India including those in private sector offer education loans to deserving students seeking higher studies in India as well as abroad. As long as you have a confirmed offer to pursue your higher education at a recognized institute and have a reasonably good academic track record, you can approach any bank to seek an education loan.
What is the maximum loan amount I can get and what does it cover?
Most banks have a maximum limit of Rs. 7.5 lakhs for students seeking loans for higher studies in India, while for those going abroad the limit is Rs. 20 lakhs. However, some banks do offer loans for higher amounts if some collateral such as property, bank fixed deposit, LIC and NSC is provided. The following is a generic list of fees/charges that are covered by an education loan: