What is the procedure to get an education loan?



i m planning to do a course in animation from MAAC Delhi.
Can any one tell the procedure to get an education loan?? What are the formalities involved in it?

2 Replies to “What is the procedure to get an education loan?”

  1. Providing quality education to children is the first priority of every parent. However with increasing cost of living, good education is also becoming dearer. High cost may sometime deter a parent from sending the child for higher education especially for professional courses. Sometimes even working individuals may find the costs prohibitive while wanting to pursue a course for career advancement.

    Despite the fact that a professional degree may cost a neat sum of money, more so if acquired from a prestigious institution abroad, one has to accept the fact that such an investment is sure to fetch handsome returns in terms of long-term career prospects. Therefore if cost of a course is the only constraint, it is prudent to take an educational loan and do the course. Investment in higher education also makes sense for the banks and many of them lend money to bright students as educational loans at very affordable rates and attractive terms. Though most of them require some collateral security, equivalent to the loan amount, in form of LIC policy, Government Bonds etc.

    These loans are available for studying in India and abroad as well. The best feature of such loans is that most banks provide a `loan holiday’ and start recovery even one year after the course is completed and the individual gets into a suitable job.

    Some of these loans that are available and offered by different banks, have been discussed below along with their salient features.

    Allahabad Bank

    Eligibility:
    Allahabad Bank offers education loans to students who have secured admission or are already studying in any of the following institutes:

    1. Indian Institutes of Management (IIMs’)

    2. Indian Institute of Technology (IITs’)

    3. Indian Institute of Science, Bangalore,

    4. Jamnalal Bajaj Institute of Management, Mumbai,

    5. XLRI Jamshedpur,

    6. Roorkee Engineering College

    7. Indian School of Mines, Dhanbad

    Purpose & Quantum of Loan:
    The loan is meant to cover entire tuition fees, hostel and mess charges, library fees or any other fees / charges payable to the institution subject to a maximum of Rs 2.50 lacs. The rate of interest for loans upto Rs 2 lacs is 12.5% per annum and 16% per annum for loans above Rs 2 lacs.

    Application & Procedure:
    Eligible candidates can obtain application forms for the loan from the designated branches of the bank or download the form from the bank’s website. The bank makes an agreement with the student who also has to provide a guarantee from the parent or third party. The loan amount is disbursed in installments and remitted directly to the Institutes after the necessary formalities are completed.

    Repayment Terms:
    The loan is repayable in 48 equated monthly installments (EMIs). The EMIs commence one year after the completion of the course or when the student gets a job, whichever is earlier.

    Canara Bank ^ TOP

    Eligibility:
    Canara Bank offers educational loan under the scheme ‘Vidyasagar Educational Loan Scheme’. The scheme is open to any student with consistently good academic record for pursuing school education or higher education in India or abroad. The scheme provides relaxation for reserved candidates.

    Purpose & Quantum of Loan:
    The loan is meant to cover upto 75% to 85% of the entire tuition fees, hostel and mess charges, library fees or any other fees / charges payable to the institution as well as one way passage for those going abroad, subject to a maximum of Rs 5 lacs for studying in India and Rs 10 lacs for going abroad. The rate of interest is 12.25% for loans upto Rs 2 lacs and 14.25% for loans above Rs 2 lacs.

    Application & Procedure:
    Eligible candidates can obtain application forms for the loan from any of the branches of the bank or download it from the bank’s website. The student can borrow the loan jointly with his parents.

    Repayment Terms:
    The loan is repayable in 36 to 60 installments. It commences 6 months after completion of the course or after getting a job whichever is earlier.

    Dena Bank ^ TOP

    Eligibility:
    Dena Bank provides educational loans under the scheme called the ‘Vidya Laxmi Educational Loan Scheme’. It is available to students with good academic record who are interested in pursuing higher education in India or abroad.

    Purpose & Quantum of Loan:
    The loan is meant to cover upto 75% of the entire tuition fees, hostel and mess charges, library fees or any other fees / charges payable to the institution as well as one way passage for those going abroad, subject to a maximum of Rs 3.50 lacs.

    Application & Procedure:
    Eligible candidates can obtain application forms for the loan from the designated branches of the bank. The student has to enter into an agreement with the bank and provide requisite guarantees etc as in case of other banks giving similar


  2. You can approach the nearest branch of a bank in your area or the bank at which your father, mother or any of your family members have account: Your previous educations records: fathers income details: admission details for the above course: details about the course and job opportunity after the completion

    You go to the Bank with above details: approach the education loan officer: Give will ask the details and you show all the documents you have:I hope you will get if the course is eligible for aid:





Leave a Reply

Your email address will not be published. Required fields are marked *

nineteen − 2 =