Student loans are an important way for people to access education. They are now easier to apply for, allowing more high-achieving students to attend their desired institutions. Here is a guide to getting student loans, including eligibility criteria and current interest rates.

How to Apply for an Education Loan in India?

Applying for an education loan in India is now easier than ever. You can apply for a student loan online if you satisfy the eligibility criteria. Here is how to apply for a student loan:

1. Visit the official website.
2. Fill up the form with all your personal details and course details.
3. Enter details about your co-applicant.
4. Submit your and your co-applicants documents.
5. Wait for your application to get approved.
6. Once approved, your loan will get disbursed soon.

Navigating through the process of applying for a student loan isn’t easy. There are various components of a student loan that you must be aware of. Here is a brief look at each of them, before you apply for an education loan.

What are the Eligibility Criteria for Student Loans in India?

Although specific criteria may vary, there are certain criteria that most loans need you to satisfy. Here are some of them:

1. You must be an Indian national or have an Indian passport (for NRIs).
2. You should be admitted to a recognized school/institute/university course.
3. You must have a parent as a co-applicant. In the absence of a parent, a guardian or close relative can be a co-applicant.
4. Some student loans also require collateral.

For specific details, you should always visit the official website of the loan you are applying to.

Courses Covered Under Education Loans In India

Most education loans in India cover all school, undergraduate and postgraduate courses. They also cover PhDs.

1. Undergraduate Degrees and Diploma courses - B.A, B.Com, B.E, B.Ed, B.Sc, B.B.A, M.B.B.S, B.Tech, L.L.B, and others
2. Postgraduate Degrees and Diplomas - M.A, M.Com, M.Sc., M.Res., LLM, M.F.A, M.Ed, M.Phil, M.B.A, M.D., and others
3. PhD Courses and others related to Doctoral Programmes
4. Specialized Training Courses
5. Certified courses like in computers, Nursing, Teaching, job-oriented course, etc
6. Any job oriented courses like Diploma in Engineering, Agriculture, Veterinary courses and others
7. Degree / Diploma in Army, Navy or Air-Force Training courses
8. Degree / Diploma in Aeronautics or any other relevant Pilot Training courses
9. Drone Training in renowned institutes
10. Miscellaneous other courses run by the State Skill Mission or National Skill Development Corporation

Expenses Covered Under Education Loans in India

Most education loans in India cover the following expenses:

• Tuition fee
• Hostel and mess charges
• Caution deposits
• Travel expenses
• Book, gadgets, and instruments required for the completion of the course
• Insurance premium
• Expenses for completion of projects/thesis
• Interest Rate and Moratorium Period

Interest rates on a student loan can vary greatly, from as low as 1% to even 15%.

After completing the course, you get a 1 year moratorium period where no EMIs need to be paid. However, the interest is charged during this period.

Repayment Tenure

• Student loans have a flexible repayment tenure.
• The tenure starts after the course and the moratorium period is over.
• Repayment tenures for student loans can last up to 15 or even 20 years.

Wrapping up

Student loans have offered the opportunity to crores of meritorious students to pursue the course of their dreams, regardless of their financial status. With banks and non-banking financial organisations making applying for student loans convenient, education is no longer a far-fetched dream for anyone.

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Frequently Asked Questions

1. What exactly is a student loan?

Student loans cover expenses while studying, such as tuition, housing, travel, books, and more.

2. How do student loans differ from scholarships and grants?

Scholarships and grants are given to meritorious students as free money, while student loans require the entire loan amount plus interest to be paid back.

3. What types of student loans are available, and how do they compare?

Student loans can be secured or unsecured. For higher loan amounts, lenders usually require collateral as a security.

4. What factors should I consider before taking out a student loan?

You should consider various factors before taking out a student loan. Some of these include:

• The loan amount
• The repayment tenure
• The interest rate
• Whether the particular loans, etc cover all your expenses.

5. What are the repayment options for student loans, and when do I need to start repaying?

Student loans can be repaid in the form of instalments or EMIs. Your repayment tenure starts 1 year after the end of the course.