How to apply for a student loan | Educational loan

To be eligible for a student loan, you need to be a resident and should have secured your admission to a professional course through an appropriate selection process. The amount of student loan granted varies from bank to bank. Generally, the maximum amount granted for studying abroad is Rs15 lakh at an interest rate of 10.5-15%. Some banks also offer a choice between fixed and floating interest rates.

Process: If you want a loan for Rs7 lakh or more, you would need to provide a guarantor. For this loan, you need to make a down payment (pay a margin amount) of 5%. Banks also keep – property, national savings certificates, insurance policies etc – as security. You can also include your parents as co-borrowers for the loan to increase your loan eligibility. The repayment of the loan generally starts after one year of the completion of your course or six months after securing a job. This again across banks.