Just like the basic necessities, even education has become one of the essential needs of life. The government also keeps coming with new loan schemes so that no deserving student remains devoid of basic education. Students who have a secure admission in any of the reputed colleges whose degree/diploma is recognized by the university affiliated with the state board are eligible for the loan. Banks avail these loans so that students can pay for college fees, hostel, laboratory charges, cost of purchasing books, computers/laptops. In order to fix the loan amount to be sanctioned, the lender would take into consideration, the duration of the course, additional course related expenses, course material, etc. Once the loan gets approved by the lender, it is directly disbursed into the account provided by the borrower. In case of a student loan, students have to provide the account details of the college/university. To find out about the interest rates offered by various lenders, you can make use of the student loan eligibility calculator. The amount will be disbursed in Indian currency directly to the institute.
Unlike other loans, the students do not have to begin the repayment immediately. Lenders provide a grace period of 6 to 12 months other than the duration of the course. The borrower can use this time to secure and relevant job.Some job oriented courses have a longer duration. Accordingly, the tenure is also longer. Now-a-days due to the availability of the internet and online banking services, hassle free and speedy loans are being approved by lenders.If the student belongs to a financially sound family, he/she can repay the loan while still in college or else it can also be paid after finishing the course. However, you have to clear this with the lender at the very beginning. The interest rate is higher, but this is generally when the borrower cannot pay at the time of pursuing the course. If you are able to successfully pay during the beginning of the course, you will not have to face any penalty afterwards.An education loan eligibility calculator can be found on any of the banking websites.To qualify for the loan, the student has to be above 18 years and less than 35 years of age. The borrower and the co-applicant has to be of Indian nationality. Also, the co-applicant needs to have a sound monthly income source. This is like an assurance that the loan will be paid within the given time period. Both the primary and secondary borrowers need to maintain a good credit score in order to avail the loan.
Who are eligible to be co-applicants?
The student’s guardian/parents, siblings or spouse can apply for the loan with the primary borrower.
How to apply for the loan?
Firstly, visit the relevant banking website after doing all the necessary research. Fill the online loan application form and attach all the relevant documents along with it. Submit the form upon completing everything. The authority will then verify it and if the loan gets sanctioned, you will be informed by the lender. It usually takes a fortnight for the entire verification process to take place.