How to Apply for an Education Loan after the 12th?

Do you want an education loan after the 12th to continue your studies? Some popular banks in India provide educational loans to students after the 12th such as-  State Bank of India, Axis Bank, Tata Capital, etc.

Education is a fundamental necessity for everyone and plays a vital role in shaping one’s life. However, the cost of higher education is steadily rising, creating financial obstacles for students aspiring to further their studies.

If you are a student planning to take out an educational loan and want to learn all the important details, this blog is the perfect resource for you.

Benefits of education loan after 12th

Education loans offer various benefits to students, enabling them to pursue their desired courses. Some of these benefits include:

1. Access to education: Education loans provide equal opportunities for students, regardless of their financial backgrounds, allowing them to enroll in the programs of their choice.

2. Flexible repayment options: Education loans offer repayment plans that can be adjusted after students secure employment. This flexibility ensures that students are not burdened with loan repayments during their studies.

3. Lower interest rates: Compared to other loan options, education loans generally have lower interest rates, making them more affordable for students.

4. Building credit score: Timely repayment of education loans helps students build a positive credit score, which can be beneficial for future financial assistance.

5. Alleviating financial barriers: By removing the financial barrier, education loans enable students to focus on their studies without unnecessary worry.

Overall, education loans empower students to pursue their desired courses and provide the necessary financial support to achieve their educational goals.

Eligibility criteria for education loan

You must be eligible for an education loan in India. Here are the education loan requirements for international students. 

1. The applicant must be a citizen of India.

2. The student must have completed class 12th.

3. The applicant must have secured a seat in a recognized university.

Co-applicant salary requirements for educational loan

• A co-applicant (parent, guardian, or close relative) is required.
• You must have a stable source of income to repay the loan.
• The salary requirements differ depending on the lender and are determined by the loan amount and your ability to repay.
• Unsecured loans have stricter income criteria.

Eligibility requirements for secured and unsecured student loans in India

Secured Loans:

Require collateral such as property, fixed deposits, or gold. Our loans have more flexible eligibility criteria and typically offer lower interest rates.

Unsecured Loans:

On the other hand, our loans do not require collateral. However, we have stricter eligibility requirements regarding income and credit history. Additionally, we critically assess the financial stability and creditworthiness of the co-applicant.

Documents required for education loan

The following documents will be required when applying for an education loan:

1. Mark sheets for 10th and 12th grade

2. KYC document

3. Admission letter

4. Fee structure from the university

5. Income proof

6. Co-applicant’s KYC documents.

Popular Indian banks that provide education loans after 12th

Various top banks in India provide education loans starting at an annual interest rate of 6.85% and a repayment tenure of 15 years. Some of these banks include:

– State Bank of India

– Punjab National Bank

– Union Bank of India

– Axis Bank

– Bank of Baroda

– Federal Bank

– Bank of India

– Tata Capital

– HDFC

– Kotak Mahindra Bank

– Other private banks

Education loan interest rate for Indian students

The interest rate you pay will have a big impact on the total cost of your loan. Therefore, comparing rates from various lenders is important to find the best deal. In India, interest rates for education loans can vary from 6.80% to 11.50% depending on the lender, loan amount, and credit profile.

How to apply for an education loan after the 12th?

Applying for an education loan online is a convenient and time-saving process. Here is a step-by-step guide:

1. Visit the official website of the bank from which you want to obtain the loan.

2. Locate the education loan section on their website and click on “apply now.”

3. Fill out the application form with accurate information.

4. Upload the necessary documents, including mark sheets, admission letter, fee structure, etc.

5. Please review the application form and submit it online. Upon receipt, the bank will proceed to verify the submitted documents and will contact you to discuss further processing.

How to Apply for an Education Loan Offline?

You can also apply for an education loan offline. So, here is the process:

Step 1: Go to the bank branch.

Step 2: Complete the form provided by the bank, choosing the ideal loan for you.

Step 3: Submit the necessary documents.

Step 4: Once the documents have been verified, the bank will approve the requested amount according to their guidelines.

What is the education loan limit in India after the 12th?

The maximum amount you can borrow is determined by various factors such as the chosen course, university, and your (or your co-applicants) financial profile. In India, education loan limits can range from ₹4 Lakhs to ₹1.5 Crore.

Expenses Covered through Education Loan

An education loan covers a variety of expenses, although the specifics may vary from bank to bank. Here is a general list of what is typically covered:

– Tuition fees

– Insurance premium

– Hostel fees

– Cost of books

– Travel expenses

– Examination and library fees

– Caution deposit

– The cost of a laptop, if necessary to complete the course.

What is the repayment duration of an education loan?

The loan duration determines the amount of time you have to repay the loan. A longer duration results in lower monthly installments, but it also means paying more interest over time. In India, the repayment duration for education loans usually ranges from 5 to 7 years.

Education loan repayment policy in India

Understanding the repayment options offered by the lender is crucial. Explore flexible repayment options that suit your future earning potential. Many lenders offer online repayment portals and automated ECS debit for convenient repayment.

Popular courses to get an education loan after the 12th

Do you know which courses have the highest possibility of getting an education loan? Here are the popular courses to get an education loan after the 12th.

• BBA
• BDS
• B Pharmacy
• Diploma Courses
• Engineering

Read More: R.G. Kar Medical College and Hospital Courses, Eligibility Criteria and Admission Process

Final words

One of the most common concerns for students is how to obtain an education loan after completing 12th grade. Education loans serve as a lifeline for students who wish to pursue higher education but are hindered by financial limitations. These loans come with several advantages, including flexible repayment options, lower interest rates, and the opportunity to build a positive credit history.

To apply for an education loan after completing 12th grade, it is crucial to meet the eligibility requirements and provide the required documents. In India, numerous banks offer education loans at competitive interest rates and with flexible terms.

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