Education Loan

AU Small Finance Bank Education Loan

AU Small Finance Bank Education Loan

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Unlock your educational potential with AU Small Finance Bank Education Loans. Explore terms and check your eligibility today!

GyanDhan
Muskan Singh
Updated on:  23 May 2024  | Reviewed By: 
Aman 
| 215 | 7  min read

Whether you choose to study overseas or in India, figuring out the expenses of a higher education can be very difficult. The AU Small Finance Bank education loan could be the answer you're looking for if you're investigating your funding choices. This blog post will walk you through the process of obtaining the funds you require, as well as describe the characteristics of the loan, eligibility conditions, and essential application steps. This loan is intended to help you go from just daydreaming about your educational objectives to pursuing them by lessening the financial burden of education. 

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AU Small Finance Bank Education Loan for Studies in India and Abroad

For students who want to pursue higher education both domestically and abroad, the AU Small Finance Bank education loan offers vital financial support. The loan features are designed to meet a variety of financial requirements and academic goals, giving students access to the tools they need to be successful in the classroom. 

Feature Description

Loan Amount

Starts from 10 Lakh and goes up to 20 Lakh

Interest Rate*

Starting at 3% per month

Moratorium Period

Course duration + 6 months

Processing Fee

1.50% of Loan Amount

Tax Benefit

Yes; under Section 80E of the Income Tax Act

Application Process

Online and in-branch

Loan Tenure

Up to 5 years

*Note: The interest rate for education loans from AU Small Finance Bank is variable, meaning it might change depending on the state of the market.

This education loan is intended to help students pay for the high costs of attending institutions, both domestically in India and overseas. These costs include tuition, living expenses, and travel expenditures.

Check Your Education Loan Eligibility

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Eligibility Criteria for AU Small Finance Bank Education Loan

Students looking for financial aid for their education overseas or in India must be aware of the eligibility requirements for an AU Small Finance Bank education loan. This section helps potential borrowers prepare for their application by outlining the main requirements required to be eligible for funding.

  • list items Indian nationality: The candidate must hold Indian nationality.
  • list items Proof of admission: Candidates must have been accepted into an accredited university, either domestically or abroad.
  • list items Educational requirements: Candidates must be prepared for further study by having finished their 10+2 or an equivalent program.
  • list items Collateral: Collateral may be needed to secure the loan, depending on the loan amount and the study destination.
  • list items Co-applicant requirement: The loan application needs a co-applicant. Typically, a parent, spouse, or guardian would sign the loan contract with you.
  • list items Course eligibility: Undergraduate, graduate, vocational, and technical courses in India and overseas are among the many academic programs for which AU Small Finance Bank offers education loans.
  • list items Repayment capacity: To make sure the loan can be repaid successfully, the bank will evaluate the applicant's and co-applicant's financial stability.

For the most up-to-date and complete information about AU Small Finance Bank's education loan qualifying requirements, prospective borrowers are advised to speak with them directly or visit their official website. The most up-to-date information on the prerequisites for obtaining an education loan will be provided through this direct interaction, along with customized counsel.

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Document Required for AU Small Finance Bank Education Loan

Whether you're studying in India or overseas, obtaining an AU Small Finance Bank education loan entails assembling a comprehensive set of documentation to speed up the loan application evaluation process. A table detailing the usual documents that are needed from the applicant and co-applicant is provided below.

Document Type Applicant (India and Abroad) Co-applicant (India and Abroad)

Admission Letter

From the educational institution confirming enrollment

Not Applicable

Identity Proof

Aadhar Card, PAN Card, Passport

Aadhar Card, PAN Card, Passport

Academic Records

10th, 12th, Degree certificates

Not Applicable

Proof of Age

Birth Certificate, Passport

Not Applicable

Residence Proof

Aadhar Card, Utility bills, Passport

Aadhar Card, Utility bills, Passport

Income Proof

Not Applicable

Salary slips, Tax Returns

Bank Statements

Last 6 months

Last 6 months

Assets and Liabilities

Not Applicable

To assess net worth and financial stability

Collateral Documents

If required, especially for higher loan amounts or studies abroad

If required, to secure the loan

Scheduled Expenses for Course

Detailed breakdown of tuition, accommodation, etc.

Not Applicable

This comprehensive documentation ensures a thorough and equitable review procedure for the education loan by assisting AU Small Finance Bank in determining the applicant's and co-applicants financial stability and capacity for repayment. It is recommended that applicants inquire directly with AU Small Finance Bank for the most up-to-date and comprehensive information regarding the required papers. This is because the requirements may change depending on the loan amount, course, and institution.

 

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Benefits of AU Small Finance Bank Education Loan

Examining the benefits of an education loan from AU Small Finance Bank uncovers several characteristics intended to support your job advancement as well as your academic endeavors. To make the academic journey of students pursuing higher education in India or overseas more seamless, AU Small Finance Bank offers tailored financial solutions.

  • list items Flexible repayment options: Adjust your loan repayment schedule to your post-graduation financial situation. To facilitate the transition into working life, AU Small Finance Bank offers flexible repayment options that can be adjusted to your changing financial situation.
  • list items Benefits related to taxes: Section 80E of the Income Tax Act allows you to deduct interest paid on your education loans from your taxes. Your taxable income might be much decreased by this deduction, which will increase your money savings over the repayment period.
  • list items Comprehensive educational help: AU Small Finance Bank offers the financial help required to pursue a variety of educational pathways. This support spans from undergraduate degrees to professional certifications.
  • list items Effective loan processing: Take advantage of AU Small Finance Bank's expedited loan approval procedure, which guarantees prompt and effective processing of your application for an education loan. You can obtain the required finances in time for your academic sessions with the assistance of this timely service.
  • list items Committed customer service: Get individualized support all the way through the loan application process. The committed customer care team at AU Small Finance Bank is available to assist you with any questions or concerns, guaranteeing a positive and easy borrowing experience.

With these advantages, the AU Small Finance Bank education loan is an appealing option for students looking for flexible and dependable funding for their studies, both domestically and abroad.

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How to Apply for an AU Small Finance Bank Education Loan

Students can easily get funds for their education, whether in India or overseas, by following the simple and user-friendly application process for an AU Small Finance Bank education loan. To apply for an education loan from AU Small Finance Bank, follow these steps:

 

Step 1: Select your application method -  You can apply online on the bank's website or in person at any branch of AU Small Finance Bank. Depending on your tastes, both choices are designed to be convenient.
 

Step 2: Complete the application form - Provide all necessary information to accurately fill out the application form. This covers your financial history, course program specifics, and personal data. Forms can be obtained at bank locations or online.
 

Step 3: Compile and send in the necessary documents - Gather all the paperwork you'll need to submit your loan application. This contains your financial proof, academic transcripts, admission letter, and any further paperwork that may be needed.
 

Step 4: Verification and approval - After receiving your application and supporting documentation, the bank will review your loan application and verify the details. If all is OK, your loan application will be granted.
 

Step 5: Loan disbursement – Upon approval, the loan amount will be credited to your account or sent directly to the university, depending on your needs and the fee schedule.
 

The financial responsibilities of higher education can be considerably reduced by starting your educational journey with an AU Small Finance Bank education loan. Please do not hesitate to contact GyanDhan if you would like personalized guidance or help with your application. We are here to assist you in completing the loan application procedure with ease and to make sure you get the money you need to pursue your academic goals. Now, use GyanDhan to determine your loan eligibility and start your journey toward your academic objectives.

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Frequently Asked Questions

What kinds of courses are eligible for loans from AU Small Finance Bank?

Undergraduate, graduate, professional, and vocational courses are among the many educational programs for which AU Small Finance Bank provides education loans, both domestically and internationally.

Can I apply for an education loan from AU Small Finance Bank before receiving my admissions letter?

Yes, you can start the AU bank education loan application process with AU Small Finance Bank even before you receive your acceptance letter. However, the loan will only be approved and paid out after the letter is sent.

Does AU Small Finance Bank provide any particular loan products for women or other economically disadvantaged groups?

To support diversity in higher education, AU Small Finance Bank periodically offers customized loan programs with terms that may be more advantageous for women and economically disadvantaged groups. Keep in mind that the AU Finance Bank interest rate on education loans may vary, typically depending on the applicant's credit profile and other factors related to the loan terms.

What is the highest loan amount that I can request for for studying overseas at AU Small Finance Bank?

AU Small Finance Bank can provide education loans of up to ₹125 lakh to students studying overseas, contingent on the applicant's eligibility and the requirements of the course.For more AU Small Finance Bank loan details, including interest rates and repayment terms, it's advisable to directly contact the bank or visit their official website.

How are funds from education loans disbursed by AU Small Finance Bank?

AU Small Finance Bank typically disburses loans directly to educational institutions by the schedule of requirements supplied by students and the fee structure.

Check Your Education Loan Eligibility


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