Study Loan For India

In your attempt to upskill yourself, you may find yourself stuck due to financial hurdles. The high tuition fees, cost of study materials, and other expenses can make it difficult to pursue your academic dreams. Don’t be discouraged! You can study in some of the top universities and colleges in India with the help of an education loan. Get up to ₹25 Lakhs at interest rates starting from just 12% p.a. on Bajaj Markets.

The interest rates and charges of an education loan for studying in India are as follows:

Here are some key considerations to keep in mind when getting a study loan in India:

Selection of Institution

Opt for courses in reputed institutions. This is because lenders are more likely to approve loans for well-known and established universities. Ensure the course and institution you choose are accredited by relevant authorities.  These can include the University Grants Commission (UGC), All India Council for Technical Education (AICTE), or The Medical Council of India (MCI).  

Loan Amount 

Ensure that the loan covers all necessary expenditures, including tuition fees, exam fees, laboratory fees, equipment, travel expenses, and more. If you are planning to move to another city, check if you can use the loan amount to pay for your living expenses. This is usually subject to the lender’s policies.

Eligibility Criteria

Lenders usually prioritise students with high academic achievements. So, ensure to maintain a strong academic record. Check if the lender provides loans for specific courses.  For example, on Bajaj Markets, you can get a loan only for pursuing a bachelor's or a master's degree. 

Co-applicant and Guarantor 

Ensure your co-applicant has a stable income and a good credit history. This boosts your loan eligibility. Collate the required documents of your co-applicant. Some of these include their income proof, IT returns, and bank statements. The documents are used to assess your loan eligibility and are thus crucial for loan approval. 

Loan Terms

Understand whether the interest rate is fixed or floating. Choose an option based on your finances and market conditions. Use online education loan EMI calculators to know the EMI amount and plan your finances.

Loan Disbursement

Consider having the loan amount directly disbursed to the educational institution, as per the information shared in the conditional admission letter. This can help streamline the fee payments. However, if you need to utilise some part of the loan amount as loan expenses, you can choose to have the loan disbursed to your bank account. For this, it is important to understand the disbursement schedule.

Tax Benefits

The interest paid on education loans is deductible u/s 80E of the Income Tax Act, 1961, enabling you to save on taxes.

Future Planning

Some lenders offer job placement support and career counselling. These can be quite beneficial to you after you complete your education. Consider your potential income to ensure you can manage your loan repayments comfortably.

Repayment Moratorium

Check the grace period and moratorium provided. Ensure that it provides you with enough time to complete the course and secure a job. Following this, you can start repaying the loan. 

Support Services

Opt for lenders known for excellent customer service. They can assist you efficiently throughout your loan tenure. Some lenders provide advisory services to help manage your finances and debt effectively.