Marksheet Loan

Marksheet loan, also known as education loan or student loan, is a special scheme through financial organisations provides funding to the applicants for pursuing higher education. It is introduced to help the meritorious students of the country who are unable to bear the cost of higher studies. Under this scheme, students with high grades and academic qualification get finance to study in leading educational institutes and universities in India and abroad. In other words, marksheet loans taken from any national or trusted private bank negate all your monetary fears and enable you to fulfill the desire of studying in a prestigious college. The basic eligibility criteria for this loan is the educational achievement of the students as per the mark sheets of their previous exams. In order to ensure that financial help reaches the deserving students, banks assess the candidates’ eligibility on the basis of their academic performance. That is the reason why this special loan is also known as a marksheet loan.

Purpose of marksheet loan

Proper financial support helps a student on the path of success and ensures that they pursue their dreams without stress. The right to education for a student shouldn’t be hampered just because of the lack of money issue. This is what marksheet loan is focussed on.

The purpose of the marksheet loan is to provide the much needed financial support to every deserving student pursuing higher education in India or abroad. Anybody who is seeking professional or technical career-oriented educational courses such as management, medicine, engineering, etc., are granted with the marksheet loan. The student has to obtain admission in his or her desirable course or discipline which can either be at the graduate or post-graduate level.

Courses covered

• Graduation, Post-graduation/Degree/Diploma courses from renowned colleges or universities approved by UGC/ AICTE/IMC/Govt. etc.
• Regular Degree and Diploma courses conducted by leading autonomous educational institutes such as IIM, IIT etc.
• Educational disciplines including Engineering, Management, Medicine, Computer science, Pure Science, Architecture, Agriculture, Hotels and hospitality, Fine arts and design etc.
• Technical and vocational training courses such as aviation, air-hostess, shipping, nursing, teacher training etc.

Expenses covered by marksheet loan

Marksheet loan covers the following expenses:

• 100% of the payable college tuition fees
• Accommodation charges, if any
• Books and equipment
• Library fees
• Examination fees
• Travelling expenses for studying in abroad, if any
• Cost of two-wheeler
• Other miscellaneous expenses necessary to ensure completion of course

Eligibility criteria

• The applicant should be resident of India who has secured admission in renowned colleges or universities in India and abroad.
• The candidate should be within the range of 18 to 35 years at the time of taking the loan.
• The applicant must be pursuing graduate or postgraduate degree and PG diploma.
• He/she must have a confirmed admission in a college/universities recognised by UGC/Govt./AICTE etc.
• Candidates applying for full-time courses must have a co-applicant who can be the parent/guardian/spouse/parent-in-law (if married).

Documents required

• Properly filled Loan Application Form
• Letter of admission
• Copy of 10th/12th mark sheet or latest education certificate
• Statement of cost of study
• 2 passport size photographs
• Pan Card and Aadhaar Card of the student and Parent/ Guardian

Identity proof

• Driving License/Voter ID/Passport/Aadhaar Card (Copy of any one)

Address proof

• 6 months bank account statement of the student or guarantor or co-borrower/Rental agreement/Ration card/Electricity Bill/Tel Bill/Gas Book (Copy of any one of these)

Income proof

• Latest salary slips or Form 16 of the parent/ guardian/ co-borrower
• Last 6 months bank statement or updated bank passbook
• Updated 2 years ITR (Income Tax Return with income computation) or Last 2 years IT assessment order of parent/guardian/co-borrower
• Statement of the assets and liabilities of the parent/guardian/co-borrower

Loan quantum

The quantum of mark sheet loan are:

• Up to Rs.10 lakh for studying in India
• Up to Rs.20 lakh for studying abroad

Note: In special cases at bank’s discretion, a higher amount is lent to the applicants.

Loan margin money

Loan margin means the amount of the total cost that the candidate or his/her family has to bear. The loan margin money for a marksheet loan is absolutely Nil for candidates applying for a loan of up to Rs.4 lakh or less. For applicants who are studying in India at a loan above Rs.4 lakh has margin money of 5%. But for abroad applicants, the margin money on a loan of above Rs.4 lakh is 15%.

Time of loan approval

The approximate time required for the approval of the loan is 15 working days that is calculated right from the receipt date of the application. The receipt is the guarantee that the application is completed in all aspects.

Security/collateral required get a loan

The security of the loan is dependent on the quantum or required loan amount and the credit value of the principal borrower. The collaterals that are accepted are fixed deposit, residential property which can be a house, apartment or flat, non-agricultural land or life insurance that has an assured sum of 100% of the marksheet loan amount.

Here are the security/collateral which are accepted for marksheet loan:

A loan amount up to Rs.4 lakh – If the parents are a joint borrower, no security is required.

Loan amount between Rs.4 lakh-Rs.7.5 lakh – As a third party guarantee, the security of parents should be guaranteed.

Loan amount above Rs.7.5 lakh – Parents have to be the joint borrowers along with a tangible collateral security of the sum of 100% of the loan amount required.

Loan disbursement process

The marksheet loan will be disbursed either in installments or in full payment keeping in account the amount of fund to be disbursed along with the fee schedule as reviewed by the bank directly to the mentioned educational institute.

Loan tenure

The loan tenure for a loan of up to Rs.7.5 lakh and more is around 15 years. It is within this loan tenure, that the candidate applying for the loan has to complete all the repayment processes of the loan and so on before the last date.

Loan repayment duration

The ideal repayment duration of the marksheet loan is the sum of the course period and 1 year or 6 months after getting a suitable job, whichever is earlier.

What is the role of the guardian?

In the loan processing, the role of the parent(s) or guardian of the applicant is considered as a co-applicant in respect of the student loan. Here the guardian plays the role of the primary debtor.

What are the interest rates?

Various banks have their own interest rates on the loan amount. The interest rate is usually considered as the sum of the base rate and markup. The base rate is usually around 8% to 10%. So, the interest rate depends on banks to banks, ranging between 8.30% and 12.25%. The interest rates are also dependent on the loan amount and the college or university in concern.

 

Top Indian Banks that offer marksheet loan

• State Bank of India
• ICICI Bank
• HDFC Bank
• Axis Bank
• Canara Bank
• SBBJ
• Union Bank
• United Bank of India
• Dena Bank
• UCO Bank
• Bank of Baroda
• Punjab National Bank
• Syndicate Bank
• Non-Banking Finance Company (NBFC)

Marksheet loan interest rates 2018

State Bank of India	8.30% p.a. to 10.45% p.a.
ICICI Bank	11.00% p.a. and above
HDFC Bank	11.97% p.a.
Canara Bank	11.15 p.a. to 11.65% p.a.
SBBJ	11.25% p.a. and above
Union Bank	11.50% p.a. to 12.25% p.a.
United Bank	10.75% p.a. to 10.80% p.a.
Dena Bank	9.% p.a to 12.5% p.a.
UCO Bank	10.45% p.a. to 10.85% p.a
Bank of Baroda	10.5% p.a. to 10.8% p.a.
Punjab National Bank	10.65% p.a. to 11.65% p.a.
Syndicate Bank	9.95% p.a. to 11.02% p.a.
Axis Bank	10.5% p.a. – 12.5% p.a. (Till 30 December 2017)
Vijaya Bank	9.45%p.a. to 10.65%p.a.