Pursuing higher education is a dream for many. However, sometimes you may require additional support to pursue your educational aspirations. An Education Loan can help you achieve these dreams by providing necessary financial support to you and your family. In this blog, we will explore the concept of loans for education , its different types, benefits and how to apply. Read on!
What is Education Loan
It is a loan specifically designed to help you finance your education, covering the expenses for tuition, books, accommodation, etc. You can repay the loan amount in flexible monthly installments after completion of the course.
How Does Education Loan Work
A student loan works by providing the necessary funds to pursue the chosen course:
- Once approved, the loan amount will be disbursed directly to the educational institution or into your bank account, depending on the mentioned terms and agreement.
- You can then repay the loan with structured instalments over a specified repayment period.
Different Types of Education Loan
Below are the different types:
- Unsecured Education Loan
- Partially Secured Education Loan
- Secured Education Loan
Benefits of an Education Loan
Here are the key benefits:
- High Loan Amount: You can get a high loan amount up to Rs 3 crore (with collateral) to cover all your expenses like accommodation, medical expenses, daily living expenses, etc.
- Competitive Interest Rate: You can now get a student loan at an attractive interest rate starting at 11.25% p.a.
- Minimal Documentation: Submit just a few essential documents to apply.
- Quick Disbursal: Meet your institute’s application deadline hassle-free with swift disbursal.
Flexible Repayment Options: Enjoy the freedom to repay your loan amount up to 180 months after the completion of your course.
How to Apply for Poonawalla Fincorp’s Education Loan
Follow the 3 simple steps to apply:
Step 1: Click on the ‘Apply Now’ button.
Step 2: Fill in the required details on the loan application form.
Step 3: Upload necessary documents.
On successful verification, the loan amount will be disbursed into your bank account instantly.
To Conclude
Education Loan provides you with the means to pursue their desired courses without financial constraints. Its benefits like high loan amount, quick disbursal, competitive interest rate, minimal documentation and flexible repayment option can make your entire loan journey stress-free and help you fulfill your dreams.
Poonawalla Fincorp offers Education Loan of up to Rs. 3 Crore with collateral and up to Rs. 1 Crore without collateral. Apply now and benefit from attractive interest rate, online application, minimal documentation and quick approval.
Frequently Asked Questions
Is Education Loan paid by students?
Yes, a loan for education is typically repaid by the students themselves or by their parents/guardians after completing the course or during the repayment period specified by the lender.
How is Education Loan repaid?
A student loan is repaid in structured instalments over a specified repayment period. The repayment terms may vary depending on the lender and the loan agreement. Generally, borrowers have the option to start repaying the loan after completing the course. Repayment can be made through equated monthly instalments (EMIs) or as per the agreed-upon repayment schedule.
Who is eligible for an Education Loan?
Eligibility criteria may vary from lender to lender, but common factors considered include:
- Indian citizenship or permanent residency.
- Admission to a recognized educational institution or university, either in India or abroad.
- The course of study should be approved by the lender (if applicable).
- Academic performance and potential future earning capacity of the student.
- The income and creditworthiness of the primary applicant, the co-borrower or guarantor.
Is it easy to get an Education Loan? If so, how can I apply for an Education Loan?
To apply, follow the 3 simple steps:
- Click on the ‘Apply Now’ button.
- Fill in the required details on the loan application form.
- Upload necessary documents.
On successful verification, the loan amount will be disbursed into your bank account instantly.