Banks approve institutions on the basis of a number of factors including job placement, rating, infrastructure, reputation, standing, among other things. Most banks usually have a pre-approved list of universities based on which an education loan may be sanctioned.
The interest rate for an education loan in India is somewhere between 8.50% and 15.20%. Some banks tend to reduce the interest rate if you pay the loan interests on time and few may even offer a concession to women applicants.
Before filing in for the application, students must be thorough about the entire process of taking and repaying the loan from banks or other institutes. Students must be aware of the course fees, documents, scholarship grants, interest to be paid or any other important areas of loans.
Students who intend to pursue advanced degrees or higher education at universities around the country can apply for these types of professional/graduate student loans. To apply for a graduate student loan, a student must first complete an undergraduate course.
Loan applicants must be prepared for the final interview that is taken by the bank or the institute. They verify your documents and other identities with fee structure and basic allowance to pay back the loan on time.
Students must be up to date with their basic documents. Students going to abroad for further studies must keep their passport, visa and other ID proofs with themselves ready for any kind of verification. Here is the list of the required documents for an education loan.
Students should keep in mind the minute detail about the loan and its application. Things like it take 15 days for an educational loan to get sanctioned. Post that, you need to sign on a promissory note. Interest rates on an educational loan vary from 10% to 15% rates of interest.