The rate of interest on education loans varies from one bank to another bank.
Apart from the course fee, other educational expenses are also covered by the education loan such as school/college fee, hostel expenses, cost of books and stationery, However it depends upon the bank which you are taking loan.
Education loan are offered at fixed as well as floating rate of interest rate.
Basically private and foreign bank charge fixed rate of interest on education loans whereas nationalized banks have been seen charging variable rate of interest on education loans.
A percent of amount as the processing fee is charged by the banker while applying for education loan.
In most cases, the entire fee for a course is not financed by the bank. A certain percent of amount which is called margin has to be paid by the applicant. The margin requirement on the education loans are not very rigid, with the average being 5 percent for studying in India and 15 percent for studying abroad.
- The applicant (he/she) should be an Indian National.
- He/She must be Age 16-26 years else the age specified by the bank.
- He/she should not be minor.
- He/she must have secured admission to professional/technical courses, through entrance examination test/selection process.
- He/she must have a good academic record.
- He/she must have secured admission on a recognized university in India or abroad.
- He/she should have parents/guardians with stable source of income.
- Mark sheet of last qualifying examination for school and graduate studies in India
- Proof of Admission to the course
- Schedule of the expenses for the course
- Copies of letter confirming scholarship, if any
- Copies of foreign exchange permit, if applicable
- 2 passport size photographs
- Latest six month bank statement of borrower/Parents
- Latest two year Income tax assessment order.
- Brief statements of assets and liabilities of borrower/Parents
- If not an existing (funding) bank customer, proof of Identity and residence