Q1: Who is eligible for Educational Loans?

Ans: All students who want to finance their higher education can apply for Educational Loans. You should be an Indian resident in the age group of 16 to 35 years.

Q2: When the repayments of educational loans begin?

Ans: You get 1 year period after the course so that you can search for a job and repay the loan. The repayment begins after 1 year of the course period or 6 months after getting a job, whichever is earlier.

Q3: What is the repayment period allowed for educational loans?

Ans: The loan term can be extended upto 5-7 years after commencement of repayment period.

Q4: What documents are required for availing educational loans?

Ans: You are required to submit following important document:

1.    Proof of admission to the course that you want to finance

2.    Schedule of fees/expenses for the course

3.    2 passport size photographs

4.    Statement of the Bank account for last six months

Q5: Which expenses are covered by educational loans?

Ans: Educational Loans cover your course fee, examination fee, refundable deposits required by the institute, purchase of books, travel expenses for students studying abroad,etc.

Q6: Which Banks in India offer Educational Loans?

Ans: Most of the Private Sector and Public Sector banks offering loans to students for educational purposes.

Q7: How can I apply for educational loans?

Ans: You can personally visit the Banks offering these loans or you can apply online by filling a simple application form.

Q8: What professional courses do the Banks cover in their education loans?

Ans: Banks cover almost all the leading educational institutions and universities in India. Management students, Technology students, Medical and Engineering college students can get these loans after securing admission to their respective institutes.

Q9: What is the interest rate charged by the banks for taking educational loan?

Ans: The interest rate varies from bank to bank. However, as most of the banks are trying to aggressively outsell each other, the interest rates are on the competitive side. Apart from the loan product, the most important thing that you should look for is the quality of service offered by the bank.

Q10: Can I take educational loan on floating rate?

Ans: Some banks offer a choice between fixed and floating interest rates.