How to apply for an education loan on BankBazaar?
Why
Choose Education Loan?
The question should
ideally be, why choose an education loan over a personal loan, or the money
accumulated in your savings account? The versatility and advantages of
education loans are listed below-
·
Education is Expensive-It's a matter of instant availability. A comprehensive education
loan frees you from the task of accumulating sufficient money to fund your
son/daughter’s higher education. And, with inflation and shifting prices, can
you ever be 100% certain? A good education is expensive and the expenses aren’t
changing in a predictable curve. A good education loan scales accordingly and
helps you be safe from unexpected surprises.
·
Specialised Help-The expenses incurred through a standard study course are many,
caution deposits, library fees, building deposits, laboratory fees, etc. With a
comprehensive education loan, individual facets of the course can be better
addressed without the risk of running out of money. It’s more organized and
seamless with an education loan.
·
Widely and Easily Available- Comprehensive education loans are a priority product in most
banks’ arsenal of products and the RBI lists them as part of the priority
sector lending of banks. Conforming to some basic requirements and confirming
your ability to repay the borrowed amount is all it takes to get on-board.
·
Timely Assistance- Often, good intent isn’t backed by good monies. A good education
loan offers timely help when it comes to a crucial pillar that promises a
successful life- education. Nullifying the worry that accompanies the need to
gather up the requisite amount, a full-fledged education loan puts you at ease.
Features
& Benefits of Education Loans:
When it comes to a
complete education loan, the features and benefits offered are the designated
deal makers. Commonly, the following conveniences are offered as part of the
education loan-
·
Universally available.
Anyone with a will to study can apply.
·
Education loans are
provided to pursue all types of academic courses, in India and abroad. The
courses include graduation, post-graduation, vocational courses and other
certificate courses.
·
Loan amounts can vary
from a minimum of Rs.10 lakhs to a maximum of Rs.15 lakhs. For education
abroad, banks will provide loans to the quantum of Rs.20 lakhs.
·
The applicant’s annual
family income and the course pursued are primary determinants for the
applicable loan amount.
·
Usually, female
students are offered discounts and/or lower interest rates when it comes to
education loans.
·
Government sponsored
subsidy schemes, such as ‘Central Scheme to provide Interest subsidy (CSIS)’
help students from the economically backward sections of society avail the
benefits of a robust loan for education.
·
The applicant need not
repay the borrowed amount immediately. Post the completion of the course, the
repayment tenure can stretch upto 5-7 years.
·
Generally, loans below
Rs.4 lakhs do not require a security or guarantor.
Banks, in their
individual capacity, will offer a whole suit of exclusive features and
benefits. Check the same before zeroing in on the one that best complies with
your requirements.
Why
Apply for an Education Loan on BankBazaar?
BankBazaar is a user
friendly portal that is dedicated to the comparison of various banking
products, including Education Loans. A helpful resource, BankBazaar allows
visitors to better understand this loan, its pros and cons, as well as the
various banks that offer them in India. Why BankBazaar? The reasons are as
follows-
·
100% Hassle Free- Save on time and effort as you ditch legwork and fire up your
computer to check out the best education loan options. The process is extremely
simple, distraction free and incredibly quick.
·
Compare Education Loans- BankBazaar lists almost all the education loans offered by the
various banks and other financial institutions in India. The simple comparison
option allows you to choose the loan that best suits your limitations and
requirements. Plus, detailed information on every available loan option.
·
Apply Online- Post the comparison,
use the simplistic BankBazaar interface to apply online for your chosen
education loan. Kindly note- Currently, you can only apply for Avanse Education Loan on BankBazaar. More options are expected to be available soon.
·
Know it All- From important details
such as education loan eligibility, documentation and the basic terms and
conditions, to informational bytes that relate to the latest happenings across
the education loan landscape in India, BankBazaar is a treasure trove of
helpful information.
·
Always With You- Have a query or concern? BankBazaar’s brand of superior customer
support is always just a phone call, email or chat-box away.
How
to apply for an education loan on BankBazaar?
Applying for a suitable
education loan (currently Avanse Education Loan is available) on BankBazaar is
a very interactive and simple process. The following steps list this process
clearly-
·
On BankBazaar’s homepage,
access the ‘Education Loan’ option from the top navigation bar.
·
Spread before you, on
the drop-down, are popular education loan options. You can directly choose any
lender from this list.
·
Do you notice the ‘Get
Quote’ and ‘Explore’ buttons? These link to wizards that help you, a) find the
most suitable education loan for you, and b) find more information about
individual loan options.
·
Your eligibility for
the loan is determined by an interactive wizard that takes just about 3 minutes
to complete. At the end, a selection of the most appropriate education loan
options are listed before you. Clicking on any of these allows you to explore
this option further.
·
On a particular bank’s
education loan page, the ‘Apply’ button is a prominent fixture. Click on the
same to set the wheels in motion. Your information (as provided) will be
forwarded to the bank in question and the representative from the latter will
contact you in a short while.
·
You can also track
your loan application via SMS alerts and email notifications.
Comparing
Education Loans from Top Indian Banks:
Lender.
|
Loan
Amount/ Interest Rate.
|
Max.
Loan Amount
|
Repayment
Tenure
|
State Bank of India
(Base Rate- 9.70%)
|
Upto Rs.4 lakhs / 13.35% p.a (base rate + 3.65%) Between Rs.4 lakhs- Rs.7.5
lakhs / 13.60% p.a(base rate + 3.90%) Above Rs.7.5 lakhs / 11.60% p.a (base rate + 1.90%)
|
Studies in India-
Rs.10 lakhs Studies Abroad- Rs.30 lakhs
|
5-7 years
|
Axis Bank (Base Rate-
9.95%)
|
Upto Rs.4 lakhs / 16.95% p.a (base rate + 7.00%) Between Rs.4 lakhs- Rs.7.5
lakhs / 17.95% p.a (base rate + 8.00%) Above Rs.7.5 lakhs / 15.95% p.a (base rate + 6.00%)
|
Studies in India-
Rs.10 lakhs Studies Abroad- Rs.20 lakhs
|
Maximum 7 years
|
Punjab National Bank
(Base Rate- 10.00%)
|
Upto Rs.4 lakhs / 12.00% p.a (base rate + 2.00%) Between Rs.4 lakhs- Rs.7.5
lakhs / 13.00% p.a(base rate + 3.00%) Above Rs.7.5 lakhs / 12.50% p.a (base rate + 2.50%)
|
Studies in India-
Rs.10 lakhs
|
Loans upto Rs.7.5
lakhs : 10 years Loans above Rs.7.5 lakhs : 15 years
|
Avanse Education Loan
(Avanse Base Lending Rate- 11.50%)
|
Calculated
individually based on course being pursued and the accompanying cost.
|
Minimum- Rs.50,000
Maximum- No Limit
|
Minimum Repayment
Tenure- 12 months Maximum Repayment Tenure- 120 months
|
Top
Banks Offering Education Loans in India:
The following banks are
listed at the top of their class when it comes to education loans in India-
·
SBI Education Loan-India’s largest public sector bank is also a firm favourite when
it comes to education loans. Offering upto Rs.10 lakhs for studies in India and
Rs.30 lakhs for studies abroad, the SBI Education Loan is a full-fledged
offering with customer friendly features and benefits. Some of the key
highlights of the SBI Education Loan are as follows- friendly interest rates,
coverage of a wide spectrum of educational courses in India and abroad,
immensely student friendly terms and the backing of SBI’s legendary name and
reliability.
·
Axis Bank Education Loan- India’s third largest private sector bank is a strong contender
when it comes to student friendly loans for education. The Axis Bank Education
Loan is a full featured offering that is characterised by friendly interest
rates, quick turnaround times, loan amounts of Rs.10 lakhs for studies in India
and Rs.20 lakhs for studies abroad, a comprehensive listing of funded
educational courses (in India and abroad) and Axis Bank’s famous brand of
customer support and banking innovation.
·
HDFC Education Loan- India’s fifth largest bank is a veteran when it comes to
offering comprehensive and student friendly education loans and also commanding
absolute devotion towards its loan schemes from students aspiring for higher
education in India and abroad. Competitive interest rates, a whole range of
student centric options and features, funding for an elaborate list of
educational courses in India and overseas, alongside HDFC’s constant popularity
and new-age banking methodologies, are some of the fundamental reasons why HDFC
must be on your scanner when talking of good education loans.
·
Avanse Education Loan-The first thing that hits you about education loan offerings
from Avanse is the sheer number of options on offer. Loans for studies in
India, abroad, executive education, pre-admission loans, pre-visa disbursement
loans and fast track loans are popular offerings, while a number of student
friendly terms and conditions make the aforementioned loans very popular.
Avanse Education Loan is focussed on top notch customer service that is backed
by an interactive and robust loan processing and disbursal system that will
ably match the best on offer in India.
Education
Loan Interest Rates
Many factors determine
the attractiveness and acceptability of any standard loan product, a
competitive interest rate being one of the more important factors in this
regard. In India, education loans usually command an interest rate from
anywhere “Between” 12.00 % to 16.00 %, depending on the bank’s base lending
rate and other factors. The base lending rate for banks in India, as directed
by India’s apex bank, the RBI, is around 9.00- 10.00%. Some private education
loan lenders/ financial institutions offer interest rates that are based on
their own base lending rates (often very dynamic) and calculation of interest
rates are accomplished on a case-to-case basis.
Education
Loan Application Checklis
