How Can You Get an Education Loan After 12th? Here’s a Guide

Education is an essential requirement of any person and plays a crucial role in shaping life. However, the cost of higher education is increasing steadily and sometimes financial instability acts as a barrier to many students who wish to pursue higher education. Here is when an educational loan comes into the role. Educational loans are usually financial assistance provided to students who cannot afford higher education and other related costs. It encourages students to pursue the course without thinking about any financial limitations. If you are a student planning to take an educational loan and want to know everything about it, this blog is the right place.

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Benefits of Education Loan

Education loan offers various benefits to students  that help them pursue the course of their wish, some of the benefits are: 

• Education loan enables access to education to all irrespective of their financial background and helps them follow the program they opted for. 
• Education loans offer flexible repayment options after the employment of students, which does not create any burden on the students. 
• Education loans usually have lower interest rates compared to other sources of loans, making them affordable. 
• Repayment of an education loan on time helps students to build a positive credit score which can help them in future financial aid. 
• Education loan removes the barrier of finance and thus allows students to focus on their studies without any worry. 

Eligibility 

There are certain criteria on which education loan is provided such as

• The applicant must be a citizen of India
• Student must have completed class 12th
• The applicant must have secured a seat in a recognized university.

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Documents Required 

The documents that will be required during the application for an education loan are: 

• Mark sheet of std 10th and 12th
• KYC Document
• Admission letter
• Fee structure of the university
• Income proof
• Co-applicant KYC documents. 

Top Banks in India Offering Education Loan

Education loans are provided by various top banks in India starting from an interest rate of 6.85% per annum with a repayment tenure of 15 years. Some of the banks are:

• State Bank of India
• Punjab National Bank
• Union Bank of India
• Axis Bank
• Bank of Baroda
• Federal Bank
• Bank of India
• Tata Capital
• HDFC
• Kotak Mahindra Bank
• Other private banks

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How to Apply for an Education Loan Online?

 The steps to apply for an education loan online are: 

Step 1: Visit the official site of the bank

Step 2: Selection education loan and click on apply

Step 3: Fill up the form and upload the required documents

Step 4: The bank will verify the documents and get back to you for further processing. 

How to Apply for an Education Loan Offline? 

The steps to apply for an education loan offline are: 

Step 1: Visit the branch of the bank

Step 2: Fill out the form provided by the bank after selecting a perfect loan for you. 

Step 3: Submit the required documents 

Step 4: After verification of the documents, the bank will grant you the amount required by or as per their guidelines. 

Expenses Covered under Education Loan

Various things are covered under an education loan, this may vary from bank to bank but a general list of things covered are

• Tuition fees
• Insurance premium
• Hostel fees
• Cost of books
• Travel expense
• Examination and library fees
• Caution deposit
• The expense of a laptop if required to complete the course. 

FAQs

This was all about education loans after the 12th. Hope this blog cleared all your doubts regarding the education loan. For more information, keep following Leverage Edu.