What Are the Requirements for Educational Loans?

• The Educational Loan Scheme gives you loan upto 9 lakhs for Indian studies and upto 21 lakhs for abroad studies. These figures are not constant in nature for banks. State bank of India is availing an upper limit of 20 lakhs and in recent days. Indian bank give loan upto 15 lakhs for education in India and up to 30 lakhs for study overseas.

Criteria for LoanThe eligibility criteria of the bank to obtain an educational loan

from any bank of India:-

• Students must be Indian

• The student should have secured admission to professional/ technical courses through entrance test/selection process

• The Student secured admission to foreign university

Documents Required

• You need to keep the following documents in place before applying for an educational loan emi calculator:

• Mark statements of all qualifying documents.

• Proof of admission to the course.

• Complete Schedule of exam.

• Letter of confirmation.

• Foreign Exchange permits.

• Two passport size photographs.

• Bank statement.

• Income tax receipt.

• Brief statements of assets and liabilities of the borrower.

• If you don't have existing bank account, then you need to open it.

Repayment

• Loans are repayable in 5 to 7 years. Repayment of both principal and interest will start after one year after completion of the course or six months after getting employment.

Margin• If the course cost is up to 4 lakhs, nil for both studies in

India and abroad. If the course cost is above 4 lakhs, 5% for inland studies and 15% for studies abroad.

Percentage of Interest

• The Rate of interest is 11% up to INR 4 Lacks. For Above INR 4 Lacks are charges 12%.

Protection• Requirements Changes from Bank to Bank

• Upto INR 4 lakhs, No collateral security.

• Loan above INR 4 lakhs and up to INR 7.5 lakh. Security in the form of satisfactory third party guarantee.

• Loan above INR 7.5 lakhs.

• (a) Collateral protection of suitable

• (b) Co-obligation of parents/guardians/third Party along with assignment of future Income of the student for payment of Installments.

Service of process Charges

• Most of the Indian banks do not charge any processing fee or upfront charges. The State Bank of India accepts a deposit of INR 5000 for education loan for studies abroad, which is adjusted in the margin money.

Capability Security

• If you are going abroad to study, some of the foreign universities require you to submit a certificate from your bankers about the sponsor's solvency/financial capability with a view to ensure that your sponsors are capable of meeting the expenses till completion of studies.

Finally, you need to hit on the right bank with the right educational loan scheme to suit your needs.

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Source: http://www.sooperarticles.com/education-articles/financial-aid-articles/what-requirements-educational-loans-770666.html