Education- a human right
Education is the human right that every individual is entitled to. It is necessary for any individual as the basic needs for home, food, shelter. In a country like India, where elementary education up to the age of 14 years is compulsory by the law, but still, many do not have access to education. So, how to get an education loan?
The reasons could be endless. Education is Important. It empowers you as a person and gives you the wisdom to differentiate between right and wrong, to decide for oneself.
You as a student may be studying well, in a good air-conditioned school, university because your parents have the money to afford the luxuries. But, some are denied this opportunity, who are forced to end their dream of studying just because their parents cannot afford the expenses or even finance their studies.
Well, there is a solution to this problem and the solution is Education Loan.
Educations loans – the key to one’s dreams
Education Loan is the key to fulfill one’s dream of having access to education and studying in one of the best schools or universities to pursue their dreams. Education Loan is defined as Money borrowed to finance education or school-related expenses.
Payments are often deferred while in school and for six months grace period after education. Parents, who do not have the means to finance their child’s education, can avail of the education loan from the bank and their child can study.
Becoming popular day by day
Education loan is becoming popular day by day due to the rising fee structure, education system, and other related expenses. It came into existence in 1995 by SBI and thereafter many banks started offering student loans.
Indian banking sector
The Indian banking sector started giving student loans in the year 2001. Now, every private bank provides student loans to carry forward your studies. But each bank has its policy and parameters for providing the loan.
Banks provide education loans to meritorious and deserving students who require finance to continue their studies. Moreover, it helps the students to pursue higher education and make their career which would seem impossible without this. To avail, the loan one must meet the bank’s criteria.
1. Bank receives an application for the student loan
- Firstly, academic background, qualification of the student, Mark sheets, credits, achievements are considered.
- The course for which the loan is being sought. It should be a good course, which has placement and job opportunities so that you can repay the loan.
- The college at which the course will be studied, the school, college, a university should be reputed.
- They value the offered collateral.
- Whether or not parents, guardians, third -party are co-borrowers of loan. They check the job profile and credibility of co-borrowers.
2. Eligibility criteria
- Undergraduates/ diplomas and special courses
- Postgraduates/ diplomas and special courses
- PhDs and Doctoral Programs
Also, banks provide education loans for various special courses, training programs, and diplomas. Not every bank extends the loan into this area, some do. Do check the details.
- Teacher Training
- Agri diploma
- Computer Certificate courses etc.
3. Eligible Institutions
Banks also consider the institutions you have selected to pursue your studies. They cannot just offer loans to any institution. However, they offer it to only reputed ones, so they have the security of repayment as the reputed once have placements and higher job openings.
- Universities, colleges recognized by UGC, Govt., AICTE, AIBMS, IMCR, etc.
- Approved polytechnic institutions
- Reputed foreign schools/universities in India
5. Documents Required
- Duly filled Loan application form
- 2 passport size photographs
- Graduation, Secondary School, High School Mark sheets,
- Documents with Id, Address and age proof
- Signature Proof
- Income proof of parents, guardians
- Complete the documentation
There are several banks like HDFC, SBI, and Axis bank along with others providing the education loans to students to pursue their studies. Education Loan is a sector that provides you with the opportunity to go for higher education, study abroad and come out with flying colors.
It contributes to your overall growth and development. Education loan is the investment, therefore choose wisely, and check all the details before applying. Take Your Time! Although the Education loan is the growing sector and many avail the loan due to the number of reasons.
The government and banks must provide loans at the subsidized interest rates. The government should work in this area and see that the deserving can avail of the loans without any difficulty. All the steps in this direction by the government and the banks will help to promote education for all and the dream to study will be seen by all.
For any education loan, drop us an email at firstname.lastname@example.org / call at 95.5511.5533.