Education loans: How much can you borrow?Editorial Team1626|3Last Updated:10:00 am, July 21, 2012
A loan should be the final option for students who want to study. Students taking education loans from banks must read the terms and conditions carefully before signing.
Do I need an account with the bank before taking a loan?
It is an advantage if you have an account with the bank as it is easier to get a loan.
Am I eligible for an education loan?
Students should be between 16-35 years of age, be an Indian national and most importantly, have confirmed admission to an institute. Students should have First Class in academics, no gaps in their education and their parents/guardian should have a regular source of income. The institute should be on the bank’s recognised list of institutes.
What documents are required for an education loan?
Three types of documents are required:
- Identity, age, academic records and address proof of student
- Relationship, income and address proof of co-applicant
- Evidence of admission letter and fee break-down
Students studying overseas have to submit the visa approval document, GRE/GMAT/ relevant test scores and travel documents.
What is the maximum limit that I can borrow?
Studying in India: Rs 7.5 lakh - Rs 15 lakh
Studying Overseas Rs 20 lakh -Rs 25 lakh
How do banks determine the loan amount?
The amount varies from bank to bank. It can depend on the course you want to study, the institute you have gotten admission and on your parents’ monthly salary. The loan amount may be around 10 times your parents’ salary.
Loans up to Rs 4 lakh do not require a third-party guarantee from a friend or relative. Many banks offer loans at a lower rate of interest to female students.
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