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Merchant Navy is one of those professions that is a bit away from the mainstream which is also an adventurous career option. If you are backing off due to the financial crunch you might face if you choose to join the Merchant Navy then this blog will solve this problem. As the title suggests, today will provide you with detailed insight into education loan for merchant navy. So stay tuned and continue reading.
Table of Contents
The profession of Merchant Navy began to flourish in the early 20th Century when the Indian Merchant Navy was established by the Ministry of Company Affairs (Government of India) and became a massive success as the Indian Merchant Navy had a huge contribution towards the Indian Economy i.e. (the GDP of India). Merchant Navy is not only about the body formed by the Government of India, some operations are also run by some private companies independently but they also need to maintain the code of conduct without violating any policies and rules set by the Ministry of Company Affairs.
Relevant Read- How to Join Merchant Navy After 12th in India: A Complete Career Guide
Here are some of the key benefits of taking an education loan for Merchant Navy:
- You can reduce the financial burden that any higher education course would cause and you pursue your Merchant Navy education without any extra concern or tension related to finance.
- You get a flexible repayment option that can be between 12 to 60 Months or even more depending on the bank or provider
- You will get competitive interest rates on education loans so that the interest you pay stays nominal
- You can claim tax benefits under Section 80E of the Income Tax Act by paying interest on the education loan
- If you are planning to study abroad, the other expenses like tuition fees, accommodation, and travel costs are also included in an education loan
Also Read- UCO BANK EDUCATION LOAN: DOCUMENTS REQUIRED, CALCULATOR, APPLICATION, BENEFITS
Merchant Navy itself is an adventurous and rewarding experience. You get tax-free income, get opportunities to travel around the world and much more and make your dream hassle-free here are some of the banks that provide education loan for Merchant Navy:
- SBI– The State Bank of India (SBI) is one of the dominant public sector banks in India. It’s one of the safe banks where up to INR 5 Lakh is insured by the RBI itself. SBI offers education loans for various study programs and one of them is Merchant Navy. You get an interest rate ranging from 8.75 to 10.25 % with a maximum loan amount of up to INR 1.5 Crore.
- Axis Bank– Axis Bank is a private sector bank that provides all sorts of banking solutions like savings accounts, credit cards, personal loans, and education loans. The interest rate may range from 13.75% to 15.20 % and the maximum loan amount is up to INR 75 Lakh with 0 processing fee.
- HDFC Bank– HDFC Bank is another private sector bank that holds a dominant position in the Indian market. They provide education loans to eligible students at a very competitive and attractive interest rate that ranges between 9.33 to 13.65% and the maximum loan amount is INR 20 Lakh
- PNB– The Punjab National Bank (PNB) is another public sector bank that provides different banking solutions along with education loans. The interest rate ranges from 8.90 to 10.40%. The maximum loan amount is INR 40 Lakh with 0 processing charges.
Eligibility Criteria
Here are the essential eligibility criteria that you need to fulfil to get your education loan for merchant navy approved:
- You need to have a valid 10+2 passing certificate
- For Marine Engineering students you need to provide your GME scores
- You should have an aggregated score of 60% and above, otherwise, there are high chances your loan application might get rejected
- You need to be creditworthy, in layman’s terms your CIBIL score should be 700 and above
- In case you don’t have a credit history or a low CIBIL score, you need to provide collateral like some property, gold or any kind of asset equivalent to the value of the loan amount and you will also need a co-applicant
- You need to show an admission confirmation or an offer letter from a recognised Institute or College
- Your minimum age should be 16 years as an applicant. (Kindly Note, The minimum age may vary depending on the bank)
- Lastly, you need to be a resident of India
Also Read- CAN YOU GET A STUDY ABROAD EDUCATION LOAN WITH LOW CIBIL SCORE?
Documents Required
Here are some of the necessary documents that you will need while applying for an education loan for Merchant Navy:
- Identity Proof like an Aadhaar card or Driving License
- Pan Card
- Birth Certificate for age verification
- Academic proof such as mark sheets, certificates, degrees or any previous qualification
- Admission proof such as an offer letter from the Institution
- Income proof such as salary slips, and bank statements of the co-applicant (if any)
- Collateral security proof like property papers or fixed deposit receipts
FAQs
Research and compare different banks.
Choose a bank with affordable interest rates and no hidden charges.
Visit the bank’s branch physically with all the necessary documents near you.
Alternatively, you can also visit the bank’s official website for the online process but it’s always recommended to visit the bank’s branch with your co-applicant for faster approval of your loan
Unfortunately, it can be hard to get an education loan if your and your co-applicant’s CIBIL score is low but it’s not impossible. You can approach smaller banks with your loan application and tell them the reason behind your poor credit score. They can consider approving an education loan for Merchant Navy.
B.Sc Nautical Science
Marine Engineering
Diploma in Nautical Science
B.E Naval Archietecture
This was everything related to education loans for Merchant Navy. Simplify your study abroad experience with zero hindrances by reaching out to Leverage Edu.