January 28, 2020
Engineering is a well-sought out program for many students across the country. Students who want to build a career in Engineering pursue programs like B.Tech, M.Tech, B.E and more. Being a technical and professional course, it typically requires high fees as compared to other programs. Due to this reason, there are several education loans available for engineering students, to help finance their educational needs.
When someone carries out a loan, multiple factors are considered. These include the university/college you will be attending, the course name, academic background, financing capacity and more. It decides whether you can avail a loan and be responsible when it comes to repayment. It also denotes the interest rate you will be paying on your engineering loan for college.
Eligibility Requirements for an Education Loan for Engineering
There are some eligibility requirements that lenders ask for before approving an applicant for loan -
- The student must have valid test scores of entrance exams such as JEE Mains, GATE, SAT, COMEDK UGET and others
- The applicant must be a resident of India
- Collateral may be required for huge loan amounts
- You can apply for a loan with a co-guarantor or co-applicant who can make the payments if you fail to do so
- The loan is approved after the test scores are out and the admission is guaranteed.
Features of an Engineering Education Loan
There are certain features which determine the ease of getting an engineering loan for students. These include the following -
1 - Popular courses such as B.Tech, M.Tech, B.E and M.E. will fetch you the loans easier as compared to other engineering courses due to its high preference everywhere.
2 - The applicant must have guaranteed admission to a recognized institution.
3 - The loan covers the cost of tuition, books, accommodation charge, exam fee, library fee and other costs as such relating to the education of the student.
4 - The preferred age group of students who can get the loan is between 16 - 35 years.
5 - The repayment of the loan program will start after the student finishes the course/ graduates. The repayment tenure may be flexible or stringent, depending on the lender.
6 - Although you will not be required to repay the loan once you enrol in college, the interest will get accumulated through the tenure of the loan. You will repay this amount once the repayment period starts.
7 - Several offers are provided for girl students such as relaxation in the interest rate and flexible repayment plans.
8 - The interest accumulated on the loan is not more than 4 lakhs in most of the cases, however, it may vary.
9 - If you borrow an amount up to 4 lakhs for your engineering loan, you would not require any collateral
10 - If the loan amount is more than 4 lakhs, you may have to pledge some collateral such as a house or gold.
Documents required to avail an Education Loan for Engineering
While applying for a loan, the applicant will be required to submit these documents as proof of identity, address, admission and more. The important documents are mentioned below -
- PAN or Aadhar Card
- Admission Letter from the college
- KYC Documents
- Address proof
- Academic proof/credentials of the school
- College fee structure
- Proof of financial aid (if received any scholarship or other financial aid)
- Income proof of parents
- Filled bank application form
- Passport size photographs
In case students want to apply for an education loan for a master’s program in engineering, they may be required to submit additional documents -
- Academic credentials which include graduation mark-sheet copy
- Latest Form 16 (if the applicant has worked in a company)
- Latest payslip
- Company offer letter/ID
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Education Loan for Engineering across India
Education Loans for Engineering are available all across India in all the states for national and state-level engineering entrance examinations. Some of the states and their engineering loan programs are given below.
If a student gets admission to a reputed college/university in Maharastra then he/she can avail an engineering loan easily. The college must be UGC recognized. The loan amount covers all the education-related expenses.
If a student secures admission under management quota, the loan may be considered on a merit basis.
Delhi is home to some of the best engineering colleges in India. The government of Delhi has come up with a scheme where a student will not be required to pledge any collateral for engineering loans of up to 10 lakhs. Loan amount of up to 4 lakhs can be easily availed for students who clear 12th examination. This also includes all the costs related to the education of the engineering student.
Karnataka has a state-level entrance exam for engineering which is CET/COMEDK. Whether you write this entrance exam or the other, getting an engineering loan is easy. It only requires you to get admission into a reputed and recognized university or college. The students are offered up to 10 lakhs and it is offered after accessing the repayment capacity of the student.
Tamil Nadu is a state which hosts many reputed engineering institutions. Students who get an admission in an institution located in Tamil Nadu can get an engineering loan easily. The loan amount can go up to 14 lakhs. Many institutions are partnered with banks to provide easy access to education loans for students