In India, engineering has always been a popular stream of study. It comes as no surprise that India has some of the best engineering colleges in the world – both private and Government owned. One sixth of Indian students generally enroll in engineering and technology related courses. With more than 700 multi – disciplined Universities and over 35,000 affiliated colleges with over 20 million students, Indian higher education is a very large system. Most of the Indian Banks offer education loans for engineering students at affordable interest rates.
Features of Education Loan for Engineering Students in India:
Here are some of the advantages of availing an education loan to pursue engineering courses in India.
- Since engineering is one of the highly preferred courses in India, availing education loan for engineering courses like B.E, B.Tech and M.E is relatively easier.
- Indian nationals aged between 16 years to 35 years can avail an education loan from any lender for pursuing graduate and post – graduate courses in engineering.
- The applicant must have a confirmed admission in a university or a college recognized by UGC, Government, AICTE or such board.
- The education loan will cover costs of exam fees, library fees, admission costs, tuition charges, accommodation charges and other reasonable expenses required to complete the course.
- Education loan repayment will start only after the course is complete. The entire loan amount, in any case, has to be repaid before the tenure which is usually anywhere between 5 years to 7 years.
- Generally, the interest rate would be minimum if the amount is lesser than Rs. 4 lakhs. However, interest rates vary with bank and are subject to frequent change.
- For girl students who have secured an admission to a recognized engineering college, many banks offer concession in interest rate.
- Most of the banks do not demand security for education loan amount up to Rs. 4 lakhs. Documents of assets like gold and house can be pledged as security for home loan.
Education Loan for Engineering Courses – Eligibility:
An applicant must satisfy the following eligibility conditions if he wishes to apply an education loan for an engineering course in India.
- The applicant must be in the age bracket of 16 to 35 year and should be an Indian resident.
- The applicant must have secured admission to a graduate or postgraduate engineering course in college or universities recognized by the UGC, Government, AICTE and other such institutions.
- A collateral security might be insisted based on the loan amount.
- The applicant must apply for an education loan with a co-applicant. The co-applicant can be parent, guardian or spouse in case the applicant is married.
Education Loan for Engineering Courses – Documents required:
The applicant will be required to submit the following documents while applying for an education loan to fund the engineering education,
- Admission Letter
- Detailed cost break-up of the engineering program
- Duly filled application form with photographs
- KYC documents
- Guarantor’s bank account statement for the last 6 months
- Guarantor’s IT Return for the last 6 months
- Statement of assets and liabilities to be presented by the co-borrower
- Proof of income from parent or other co-borrower
- PAN card and Aadhaar card
- Academic documents like mark sheets and pass certificates
Education Loan for Engineering Students in Bangalore:
If a student has secured admission to a recognized engineering course in a college or a university in Bangalore, most of the national and private banks in India will be ready to fund the cost of education including hostel charges, admission costs and other associated costs. For students willing to pursue B.Tech/B.E/M.E courses in any engineering college in Bangalore, Based on the repaying capacity and the course selected, students will be offered a maximum education loan of Rs. 10 lakhs for pursuing engineering education in India. Some of the popular banks that offer education loan for engineering students in Bangalore are Bank of Baroda, HDFC Bank, Bank of India, Federal Bank and ICICI Bank.
Education Loan for Engineering Students in Tamil Nadu:
Tamil Nadu houses some of the best engineering colleges in the country including CEG and IIT Madras. Students who have obtained an admission to an engineering course in a recognized technical university in Tamil Nadu can get an education loan without any hassles. Select engineering colleges also have partnered with banks to provide education loans easily. In Tamil Nadu, the fees for undergraduate engineering course may vary between Rs. 4 lakhs to Rs. 12 lakhs for 4 years. Also, in some cases where the student has secured admission through management quota in an engineering college in Tamil Nadu, certain banks may offer education loan. Some of the most preferred banks for education loan for engineering students in Tamil Nadu include State Bank of India, Punjab National Bank, Central Bank of India and Canara Bank.
Education Loan for Engineering Students in Delhi:
The State Government of Delhi has come up with a unique scheme wherein students whose parents do not have property as guarantee to avail loan will be offered educational loan up to Rs. 10 lakhs. As per this scheme, students who have cleared class 12 will be eligible for the education loan. Apart from this State Government initiative, students who have secured admission to a recognized engineering college in Delhi can avail an education loan easily for up to Rs. 4 lakhs. The loan quantum will be decided based on the repayment capacity, college and the course selected by the candidate. Education Loan for Engineering Students in Delhi covers all costs including admission costs, fees payable to hostel, books & equipment costs and project costs required for course completion and purchase of completion, if required. Also, if a student obtains admission through management quota in any of the engineering college in Delhi, education loan may be considered on a merit basis.
Education Loan for Engineering Students in Mumbai:
A student who has secured an admission to undergraduate engineering courses like B.E and B.Tech in Delhi and post graduate courses like M.E in Delhi in a recognized engineering college will be able to get an education loan easily, Students will be required to submit certain documents after making an application and the documents will be verified by the bank. For engineering studies in India, most of the banks offer loans up to Rs. 4 lakhs at nominal interest rate. In case the individual has obtained an admission to an engineering college under management quota, certain banks may consider offering a loan based on the merit status of the student. Mostly, the tenure offered for education loan for engineering courses in 5 to 7 years and the students can start servicing the EMI after the moratorium period or after they secure a job.