Education Loan

The number of students opting for higher education abroad has increased exponentially in the past two decades. Also, there is a drastic increase in the number of students opting for overseas education loan due to increase in the expenses of quality education abroad. Today there are numerous lenders offering loans to students.

Education loan for India is also available for students wanting to study in Indian colleges. There is, however, some difference in the requirements for overseas and Indian education loans.
In general, when applying for a study loan, you must keep in mind the following criteria:

• A co-applicant is a must ( could be parents, a sibling or a spouse )
• For loans between Rs 4 – 7.5 lacs a third party guarantor is required
• Collateral needs to be provided for student loans above Rs 7.5 lacs
• Loan repayment commences 6 to 12 months after course completion
• If a student goes abroad, lender recovers the remainder from co-applicant

Lenders have their own criteria developed for the upper limit of the loan, the interest rate to be charged and the period and mode of repayment.

Lenders usually have some pre-approved courses and institutions and usually sanction education loans on the basis of the quality of the institution, relevance of the course to career options, credit worthiness of the guarantor or co-applicant.