May 30, 2019
Want to pursue higher education or go abroad to study? You can apply for higher education loan in Bangalore. We have listed frequently asked questions about education loan so that you will have a good idea about the loan before you approach a financial institution for education loan.
1. What is educational loan?
A loan that is given for full-time graduation or postgraduation studies is termed as education loan.
2. What expenses do education loans cover?
The education loan covers admission fee, college fees, tuition fees, cost of buying study materials, equipment and travel, if you are planning to study abroad. However, it doesn’t cover any other fees that the college may ask for or for your living expenses.
3. What are the eligibility criteria for education loans?
In order to get education loan, you need to have an admission letter from a recognised college/university. You should have a good academic record. While most banks and financial institutions offer education loan for students aged between 16 and 26, there are some institutes that have a higher limit of up to 35 years.
4. Where to apply for educational loans?
You can apply for education loan online or visit the bank/financial institution for the loan.
5. What are the applicable fees for higher education loan application?
The processing fee depends on the institution from where you want to get the loan. It is usually around 2.25 to 2.5% of the loan amount.
6. What documents should be submitted while applying for the loan?
When you are applying for higher education loan in Bangalore, you need to submit documents such as
- Proof of admission acceptance
- Fees schedule of the educational institute
- Mark sheets of the last qualifying exam
- Applicant photograph
7. When does the loan repayment begin?
The repayment of education loan usually starts from around 6 months after course completion or the start of a job, whichever is earlier
8. Is there pre-payment option?
Each lender has regulations about the pre-payment option. So, talk to the financial institute if there is any penalty for pre-payment.
9. What are the documents that need to be submitted after sanction of educational loan?
You need to submit marksheets or progress reports at the time of a fresh disbursement after loan sanction.
10. What to do if the student discontinues the studies?
If the student discontinues or breaks studies, then he/she must immediately start making the loan repayments. Some institutes may provide a grace period.
11. What if the student doesn’t get a job after completing the course?
Again, it depends on the lender. Certain financial institutes may extend the grace period, but others may ask you to start making repayments.
12. What happens if the student is unable to repay the educational loan?
If the student is unable to repay the educational loan, the lender will report the default to Credit Information Bureau Limited (CIBIL). Legal proceedings will be started and the student’s credit history will be affected. In case, any collateral is given, then it will be confiscated.