Increasing number of working professionals now enroll themselves for part-time and full-time courses to keep up with the competition and be up-to-date with the latest developments. This not only helps them to improve their professional skills but often opens up new doors for professional opportunities.
But rather than waiting and saving for a course, education loans are a much better alternative for such working professionals. There are now several banks and NBFCs in India who offer such loans.
Let us have a look at what options one can get when you apply for education loan, eligibility requirements for such loans, interest rate and repayment of the loan.
One of the most important things to do when looking for an education loan in India is to evaluate the available options. The majority of the banks do not have special education loans for working professionals. However, there are a few lenders that do offer such special products. Lenders generally offer up to Rs. 20 lakh as education loan and require the borrower to pay around 20%-25% as the margin amount.
The lenders often require the professional to be part of a particular company or industry for at least 2-3 years. Also, if the loan amount is high, the institute where the borrower will be enrolled for the course should be recognized. The credit score of the borrower will also be checked if they are looking to get the education loan. If the credit score is good and the loan amount is not very high, the lender might eliminate the need for a guarantor.
To apply for an education loan, a borrower would be required to submit a duly filled KYC form of the lender along with address proof, ID proof, photographs and employment proof. If a guarantor is required for the loan, he/she will also be required to submit these documents. Apart from this, admission letter of the institute with fee and course details should also be submitted.
Interest and Repayment:
The interest rate on education loan in India generally ranges between 9.50% and 14% in India. The moratorium period for such loans is generally 6 months after getting the job or one year after completing the course. Lenders offer several repayments options to the borrowers. For instance, only the simple interest can be paid during the course duration and EMI will only begin after the moratorium period.
If you are looking to get an education loan, make sure that you keep the above-mentioned information in mind. Rather than visiting banks and NBFCs, it is easier to apply online for education loan. This is because you can easily compare the deals offered by the lenders online and can even apply for one by uploading the documents on the lender’s website.
Just like every financial product, ensure that you thoroughly understand the terms and conditions of the loan before signing the documents to avoid any kind of confusion.