How to Apply for Education Loan?| North Loop Official Blog
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North Loop
23 Sep 2020

How to Apply for Education Loan?

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Good quality education plays a vital role in determining any student’s professional success later in life. That is why most leading banks in India offer education loans to help them achieve their academic dreams and goals. If you are also looking for an education loan either for yourself or your children, this article will prove to be of great help to you.

Let us first look at the features and benefits of an education loan –

You can obtain an education loan in India of up to Rs.1 crore depending on a few factors. If you are looking for education loans to study abroad, some lenders also offer loan disbursal before applying for a visa. Most education loans in the country provide a moratorium of up to 1 year while the repayment tenure can go up to 15 years (loans for nursery to class 12).

You can also enjoy tax benefits for eight years on the interest paid on your education loans as provided under Section 80E of the Income Tax Act of India. But that is available only if you are an individual and have applied for an education loan for higher education, including vocational or regular courses.

However, do remember that this deduction is only applicable on the interest portion of the loan EMI and not its principal amount. That is the reason, to claim this benefit you have to provide a certificate from your bank or financial institution segregating the interest and principal portions of your EMI. Click here to use our education loan calculator

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Best Education Loan Options in India 2020 –

   
Loan   provider   
   
Processing   fee   
   
North   Loop   
   
Nil   
   
PNB   
   
1% of   loan amount   
   
SBI   
   
Rs.10000   + tax   
   
Axis   
   
Rs.15000   + tax   
   
Bank   of Baroda   
   
1% of   the loan amount up to Rs.10000   
   
HDFC   
   
Up to   1.5% of loan amount + tax   
   
Tata   Capital   
   
Up to   2.75% of loan amount + tax   


Education loan interest rates in India start from 7.30% with lenders like SBI, Axis Bank, Bank of Baroda also charging processing fees of up to Rs.15000. If you are looking for low education loan interest rate and zero processing charges, North Loop is the best option. It also provides several additional benefits like zero prepayment charges, no collateral requirement, 100% online application and a six month moratorium period.

Eligibility criteria –

Nationality -

Indian citizens
Non-Resident Indians (NRIs)
Overseas Citizens of Indian
Persons of Indian Origin (PIOs)

Courses –

Undergraduate programs
Postgraduate programs
Doctoral courses and PhDs
Certificate courses of 6 months or longer
Job-oriented courses
Technical/diploma/professional courses

Institutes –

Recognized institutions
Government colleges
Internal colleges and universities
Private institutions aided by the government

The education loan can get used for a variety of expenses such as tuition fees, hostel fees, insurance premium, examination fees, library fees, caution deposit, refundable deposits as well as the cost of books, uniform and other expenses.

Documents required for obtaining an education loan –

  • Passport-sized photographs
  • Recent bank statements
  • ID proof
  • Age proof
  • Address proof
  • Admission letter from the educational institution
  • Previous mark-sheets
  • Completed application form

How to apply for an education loan?

You can apply for education loans either online through a digital service provider like North Loop or offline via a bank by visiting its branch.

Offline education loan application – You can apply for an education loan by visiting a bank branch with all your documents and discussing the terms of the loan with a bank representative. However, this is not a favoured method of application as it involves making a visit to the bank branch and applying in person. Also, currently with the pandemic grappling all parts of the country, it has become an undesirable method of a loan application.

Online education loan application – This is the most convenient way of applying for an education loan. However, there are two types of online application as well. The first is one in which only after you provide all your details online the lender gets in touch with you to discuss the terms of the loan and proceed with the application process. The second one is a more straightforward online application which you can do on a digital platform like North loop. All you have to do here is sign up, fill the form and submit it. That is a far more preferred way of an education loan application and can be done remotely from anywhere in the world.

If you want to apply for an education loan with North Loop, click here to sign up.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.