Higher education can burn a hole in your pocket in the modern world. If you are looking to study in India or abroad, managing the tuition fee, accommodation, and study expenses can be overwhelming. That’s why an education loan can be beneficial. During this, students and parents often feel anxious when applying for an education loan. If you’re one of those people who want to go through this article to understand how to apply for an education loan without any stress and calculate education loan EMI easily.
An education loan is a type of financial product offered by banks to help students pay for their higher education. Education loans usually cover or can be availed against:
The repayment usually starts after completing the course, with a maximum repayment period provided as well in the form of a grace period of 6–12 months.
The student and co-applicant (usually a parent or guardian) are involved in the education loan process. You can apply for an education loan if you satisfy the below mentioned conditions:
a. You are an Indian citizen.
b. You have secured admission in a recognised institution.
c. You have a co-applicant who has a good credit history, enough income to repay the loan, and is stable in their job/business.
As of now, we have two kinds of education loans:
a. Domestic Education Loan: loans for universities in India
b. Overseas Education Loan: loans for universities in other countries
Two types of loans can differ in loan limits, interest rates, and repayment plans.
Here is a list of documents needed by students and co-applicants. The common documents needed are:
For Collateral Documents (if applicable)
Close-up image of hands holding a tablet close to a laptop with bold titles Education Loan indicating how to apply for an education loan online included.
Look for what education loan schemes you can find from public banks, private banks and NBFCs, make sure you compare:
Tip: You should use a free education loan calculator to compare monthly EMI payments before you apply for an education loan.
Most banks will have online tools to check eligibility based on the course you are pursuing, along with your location, and the income of the co-applicant.
You can submit your application online through the bank’s website, or in person at your nearest branch. You have to submit, along with the application form, all Documents needed to process the application.
After you have submitted the Documents, the bank will verify your details. If your application is approved, you will be sent a sanction letter confirming the terms and conditions of the loan.
You will sign the loan agreement with the bank, and it will release the amount to the institution directly as per the institution’s schedules of fee payments.
Something easy to ensure you have as little stress, as possible, during your application is to plan ahead; this can simply be done by using an education loan calculator. An education loan calculator is useful to:
You will simply need to enter:
Try a tool like LoanQuantum’s Education Loan Calculator, you will have no regret.
The repayment is an important part of the process. Being aware of your study loan EMI will help make the planning as stress free as possible. Here’s how EMI works:
Always try to calculate your EMI in advance in order to avoid it being a total surprise. You can use the education loan calculator to get started.
a. Be proactive: Plan ahead and conduct your research 3 to 6 months before your course begins.
b. Keep your documents organized: Collect your academic and financial documents in advance and keep them all organized.
c. Shop banks: Don’t go with the first lender you see! Compare rates and terms to see if the next lender offers something better.
d. Use online resources: Most education lending agencies disrupt the market trends so be cautious and use available calculators and loan eligibility checkers.
e. Get help when needed: Education consultants or loan advisors will assist you to reach a decision.
As long as you are prepared, know which tools such as the education loan calculator to help you out, and know more about the process it will help you better prepare to fund your education without the financial burden.
Whether you are having trouble with the study loan EMI to present or gathering documents to lodge the application, everything is much easier when you have knowledge. So make a good plan, make good comparisons, and make a good application.
Author Bio:
Loan Quantum is your trusted online platform for accurate and easy-to-use loan calculators. We offer a range of tools, including loan EMI calculators, interest rate calculators, and loan eligibility calculators to help you make informed decisions about personal loans, home loans, car loans, education loans, business loans, and gold loans. Our user-friendly calculators ensure you find the best loan options tailored to your needs.
Car repairs have a way of sneaking up when you least expect them. A sudden rattle under the hood, a…
That red cabinet in the lobby, or stairwell, most likely doesn't get much thought by property/building managers until an inspector…
When safety inspections are required for the workplace, too often does it happen that unforeseen compliance violations crop up where…
If you or a loved one has been injured in a crash caused by a distracted driver, it can feel…
In today’s unpredictable business world, the rules seem to change faster than you can blink. Technology evolves overnight, consumer habits…
Starting a business in a place like North Carolina already gives entrepreneurs a head start. With its business-friendly environment, supportive…