Education Loan
If you dream of studying abroad, you might be required to take up an education loan to bridge the gap of available finance and the required funds. Whichever course or university you may choose to study abroad, MOKSH can surely guide you to avail of the Education loan to fulfil your dream.
About Education Loan
The concept of an education loan is to bridge the finances till the student completes the studies and then let the student pay back the same to the financiers in the form of EMI. The student is expected to get employment on completion of the course and payback from the salary. Accordingly, the education loan is generally in the student's name. However, the parents always co-borrowed the money to securitize the loan extended to the student.
There are 2 types of Education loans available for the students.
- The education loans by the public sector banks
- The private companies provide education loans.
Education Loan By Public Sector Banks:
Public banks cover most of the study abroad programs for providing education loans. Generally, they prefer to know the customers before they provide the loan, and accordingly, you should approach the branch of your own bankers. There are 3 slabs of education loan which are popular among most of the banks:
| Rs. 4 Lacs | Based on parents' income proof |
| Rs. 7.50 Lacs | Based on Guarantor’s income proof |
| Rs. 20 Lacs | Additional collateral security |
The tenure of repayment is very convenient for the students, such as 10 years for Rs. 7.50 Lac loan and 15 years for Rs. 20 Lacs amount. Also, the scheme has 1 year of moratorium period after completion of the study/course. This period allows the student time to get employment.
The parent needs to pay the interest rate until the loan repayment is started in the form of EMI. Generally, the interest rate is around 12% (changes constantly) for boys and a discount on the interest rate for 11.5% for girls.
Generally, the education loan product has a high NPA (Non-Performing Asset), meaning repayment problems. Accordingly, the bank managers are not very anxious to give education loans. The responsibility for allotting sanctions of education loans remains with the bank manager. The risk-taking ability of the bank manager is limited, especially for education loans and
Education Loan By Private Companies
Nowadays, few companies are offering education loans in the market. HDFC Credila is one of the pioneers in providing education loans for study-abroad to students. The schemes for individual type of programs and for parents with varied financial backgrounds are customized. It is the first company to launch education loans for many students looking to study abroad:
- MBBS in USA. MBA
- MS programs in various countries, including Germany
- MBA abroad in various countries
- Study in Europe for various Career programs
Generally, the interest rate of the private companies providing education loans is higher than the public sector banks of India. However, their professional services and quick loan sanction process makes them a preferred choice among the students.
Loan For Study Abroad Programs
You can apply for the Education loan by simply submitting the following documents:
- Admission letter
- Cost to study for the entire course duration, including travel cost
- Residential proof
- Income Proof
- Guarantors, if any (All the personal and income proof of Guarantors)
- Copy of the documents for immovable property towards Collateral Security
The documents are assessed for the initial screening, and the loan confirmation is given within 1 week of submission of all the required documents.
You may contact our office or the education loan provider directly.
Personal Counselling:
MOKSH has its branch offices in 12 cities of India now so there is no need to travel to the Mumbai Head office for personal counselling! You can still do so if you wish, though. To get to a MOKSH office in your own city for a free personal counselling session on MBBS Abroad right up to PG in USA/ Germany, You call on 9699360370, and our counsellor shall arrange a Personal counselling session in your city or the closest location to you.
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