Important steps related to student loans need to be known from this article. From here you can know the eligibility criteria, interest rate, loan provider list etc.
There is a large number of students in India who cannot pursue higher education because they face financial crunch. But now students need not be worried, there is a solution “Student Loans”. Higher education can be achieved through student loans. In this article, we go through the eligibility criteria and repayment options, loan types and where and how to get a student loan? Will discuss on other topics.
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Student loans are provided to those students who are not financially capable of pursuing higher education, this is also a type of loan. This loan has to be returned after the completion of education. Generally student can get this loan from banks, financial institutions and government, for which there is a process. By using this loan, the student manages the tuition fees, accommodation expenses, study material expenses and other related expenses.
Types of Student Loans
- Secured Loans : Secured loans demand collateral to guarantee the loan amount, such as a piece of property, a fixed deposit, or a life insurance policy. Generally speaking, secured loans have lower interest rates than unsecured loans. The State Bank of India’s Student Loan Scheme, Bank of Baroda’s Baroda Scholar, and HDFC Bank’s Education Loan are a few of the more well-known secured loans in India.
- Unsecured Loans : This type of loan does not require loan security, it is also called signature loan. Interest has to be paid more in this loan. Many banks and institutions are known for unsecured loans, out of which Union Bank Education Loan and Axis Bank Education Loan are quite popular.
Student Loans Eligibility Details
To avail student loan it is necessary to have the following eligibility criteria. Some eligibility criteria may vary depending on banks, financial institutions.
- Student must be an Indian citizen.
- It is necessary to have admission in a recognized institute.
- There should be a co-applicant as a guardian.
- Good academic record.
Important Doucment for Student Loan Application
When we apply for a loan, we must have the necessary documents with us. Check the details of the following documents.
- Aadhar Card
- Admission Proof
- Mark Sheets and Certificates
- Residence Proof.
- Income proof of your co-applicant.
- Bank statements of your co-applicant.
How to Apply Student Loan 2023
The methods of applying for the loan may be different, but there are a few things to keep in mind while applying. Take the help of a loan advisor to apply for the loan.
- First find out the current status of the lenders.
- Check interest rates and repayment options.
- Check the eligibility criteria options.
- collect important documents
- apply for loan
- Sign loan agreement with loan approval
- Accept the loan amount.
Interest Rates and Repayment Options
The lender, loan amount, and payback period all affect the interest rate for student loans in India. In general, secured loans have lower interest rates than unsecured loans. Depending on the loan amount, the majority of lenders give up to 15 years for repayment.
Top Bank List provide Student Loan
|SBI Education Loan||Vidya Lakshmi Education Loan||HDFC Education Loan|
|Bank of Baroda Education Loan||Axis Bank Education Loan||ICICI Education Loan|
|PNB Education Loan||Union Bank Education Loan||Indian Bank Education Loan|
Best Student Loan
To get the best loan one should compare certain loan factors. So that you can be able to take a good loan. There are a few factors here.
- Interest Rates: To save money over the course of the loan, look for one with a low interest rate.
- Payback Terms: Take into account how long the loan’s payback period is and whether it offers flexible repayment choices, such income-based repayment.
- Fees: Look for a loan with a low cost structure because some lenders may impose prepayment penalties, application fees, or origination fees.
- Loan Amount: Take into account the maximum loan amount the lender offers; this will decide the amount you are permitted to borrow.
- Check to see whether you fulfil the lender’s eligibility conditions, which may include your credit rating, income, and enrollment status.
FAQ about Student Loans
Higher education is crucial, but for many Indian students, the expense can be a barrier. This issue can be resolved by offering students who require it financial aid through student loans. Researching several lenders, comparing interest rates and repayment alternatives, and weighing the benefits and drawbacks are essential steps before taking out a student loan. A student loan may assist you in achieving your academic objectives and creating a prosperous future if you use it wisely.
Is it necessary to have a co-applicant for taking a student loan?
Yes! It is necessary to have a co-applicant for taking a student loan.
What is the maximum loan amount that can be taken in student loan
It depends on your course and lender
What is the minimum student loan interest rate
It depends on the lender that what interest rate is charged for the student loan. As a reminder, The interest rate for direct subsidized and non-subsidized loans for undergraduate students is 3.73%.