Education loan gives a strength for student with poor background or student who study medical or other double degree in top college or university, where fees is high and expenses is high in that time education loan is required but in that where you study also important. In that you should know that different type of education loan.
Education loan allow for individuals who study and with low interest rate, also interest will paid after your education complete or duration is given by bank, like example some bank gives 1year extra time after education is completed for repayment of loan and bank will not add interest for extra time (Limited bank gives this offer) 1 year. In that loan interest in some bank is high and low in some bank, where it also depend upon where do you study in local or abroad.
Education loan are used for this purpose like Tuition fees, book, living expense, transportation cost, purchase laptop and other expense.If you wish to get education loan but you don’t have any job or work, you just need a adult or parent or guardian or relative, who will pay the loan amount after education is completed.
Different Type Of Education Loan
We are dividing in 4 different type of education loan based on the location or geography and different type of program in education, and skill based education and Diploma course and certification student loan are available.
- Domestic Education Loan
- Study Abroad Education Loan
- Based On Course
- Based on Collaterals/Guarantee
Domestic Education Loan
Domestic or local education mean like example where outer boundary of India you cannot get loan amount, you need to study in any where in India only. You should need some requirement before apply loan, you will get a seat in college in secured way and after the bank will check all eligibility criteria and after that bank will approve education loan
Study Abroad Education Loan
Some student have dream to study course in top institute or college located out of India mean they get Abroad education loan where it has some requirement same like above and some additional things also require, Like Secured Seat should already get in college or institute, and loan cover travel expense, Living Cost or accommodation, tuition fees and addition amount will provide other things and student will satisfy with loan.
Based On Course
In This 3 type of loan will provide based on course or specialisations in subject, student will get financial support for complete his/her education in certain period and know type’s below
- Undergraduates Loan
- Postgraduates Loan
- Career Development Loan
In this course after completion of 12th or inter medium study, will join undergraduate course are 3-4 year duration, on specialisations on course and getting decent job where all the need will fill by bank loan and get financial support for you in undergraduates degree completion
You completed you UG study in govt or private college, you need to study postgraduates course you need to achieve your goal but your financial condition is not good or fees is too high of your college mean you will need PG(postgraduates) loan, and get good job in this course completion.
Career Development Loan
Some people who work in co-operate company where they need improve there skill or learning new skill in professional skilled programs course or college’s to get high salary in this type of situation they can use saving or apply for career development loan.
Based on Collaterals/Guarantee
In this type of education loan you should give some valued asset like Land,Home,fixed deposit or Gold. based on this will classified into 3 types:
- Loan Against Deposit : This case bank will take a guarantee of fixed deposit amount or gold for giving education loan.
- Loan Against Property : In this case parent or relative will give land i’e agricultural land Polt/house/residencial land etc, immovable asset are taken for loan.
- Loan against securities: You can taken loan based on debentures/bonds/equity shares.
Top Education Loan Rates 2021
|Bank Name||Interest Rate (% p.a.)|
|Bank of Baroda||6.75|
|Union Bank of India||6.80|
|Central Bank of India||6.85|
|Bank of India||6.85|
|State Bank of India||6.85|
|Punjab National Bank||6.90|
|Bank of Maharashtra||7.05|
|Indian Overseas Bank||7.25|
|Karur Vysya Bank||10.75|
We covered various different type of education loan under the domestic/abroad education loan and UG,PG,career development loan and collateral based loan if this information is useful to you means share with you friend who need education loan details.