Education Loan

How To Get Education Loan After 12th?

How To Get Education Loan After 12th?

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Discover how to get education loan after 12th for studying in India or abroad with our guide. Check eligibility with GyanDhan for the best loan options.

GyanDhan
Rohit Gidwani
Updated on:  01 Apr 2024  | Reviewed By: 
Aman 
| 68 | 7  min read

Embarking on your higher education journey just got easier! Wondering "How to get education loan after 12th?" Look no further. This guide is your key to unlocking the world of education loans, offering a clear path through the financial hurdles that stand between you and your academic dreams. Whether you're aiming for prestigious universities in India or abroad, financial constraints shouldn't hold you back. Here, we provide essential insights and practical advice to help you secure the funding you need effortlessly. Get ready to transform your educational aspirations into reality without letting money be an obstacle.

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What are Education Loans?

An education loan is a beacon of hope for many students wondering how to get education loan after 12th, dreaming of pursuing higher education in India or abroad but are constrained by financial limitations. These loans cover a variety of educational expenses, enabling students to focus on their studies without worrying about the financial burden. Education loans can be availed from various banks and financial institutions, each offering different terms and benefits to meet the diverse needs of students. The significance of education loans extends beyond mere financial assistance; they are investments in the future, empowering students to unlock their full potential and achieve their academic and career goals.

Calculate your Education Loan EMI

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Types of Education Loans

Education loans can broadly be categorized into two types: secured and unsecured loans. Here’s a comparative overview to help you understand the differences:

Feature Secured Education Loan Unsecured Education Loan

Collateral

Required

Not Required

Interest Rate

Generally lower

Higher than secured loans

Loan Amount

Can be higher, depending on the collateral value

Usually has a cap or limit

Repayment Terms

Flexible, can be extended

Relatively less flexible

Processing Time

May take longer due to the valuation of collateral

Quicker processing time

Secured loans require collateral, such as property or fixed deposits, making them a lower-risk option for lenders and hence often come with lower interest rates and more flexible repayment terms. Unsecured loans, on the other hand, do not require any collateral but usually have higher interest rates and stricter repayment terms due to the higher risk for lenders.


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Education Loan Options After 12th

Several education loan providers can assist you in understanding how to get education loan after 12th? securing the necessary funding after the 12th grade. A major factor determining which lender to choose is whether you intend to pursue your undergraduate studies in India or abroad. To aid in a clearer understanding, we have listed a few lenders, considering both scenarios.

Education Loan for Indian Institutes

Lender Name Maximum Loan Amount (INR) Interest Rate Range

State Bank of India

Up to 1.5 Crore

8.55% to 11.15%

Punjab National Bank

No upper limit, varies

Up to 12%

ICICI Bank

Up to 1 Crore

9.50% – 15.85%

Axis Bank

Up to 40 Lakh

13.7% - 15.2%

HDFC Bank

Up to 20 Lakh

9.55% - 13.25%

Bank of Baroda

Up to 1.50 Crore

9.15% to 12.50%

Canara Bank

Varies, up to 50 Lakh

9.25% – 11.35%

South Indian Bank

Up to 1.5 Crore

12.90% – 13.65%

Education Loan for Abroad Institutes

Lender Name Maximum Loan Amount (INR) Interest Rate Range

SBI

Up to 1.5 Crore 

10.15% - 10.65% (males)

10.65% - 11.15% (females)

UBI

Up to 1.5 Crore

9.25% - 9.75%

Axis Bank

85% of Collateral 

9.99% - 11.50%

ICICI Bank

Up to 20 Lakh

9.50% - 11.25%

HDFC Credila

Up to 40 Lakhs 

12% - 13%

Avanse

Up to 40 Lakhs 

12% - 13%

MPOWER Financing

Up to 100,000 USD

12.99% - 15.99%

Calculate your Education Loan EMI

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Eligibility Criteria for Education Loans After 12th

When it comes to availing an education loan, the eligibility criteria can vary from one lender to another. However, there are some common requirements that most banks and financial institutions consider:

  • list items The applicant must be an Indian citizen.
  • list items Must have secured admission to a recognized university or course, either in India or abroad.
  • list items The age of the applicant typically falls between 18 to 35 years at the time of application.
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Documentations for Education Loan after 12th

To apply for an education loan, the following documents are generally required:

Application Documents:

  • list items Duly filled loan application form
  • list items Passport-sized photographs
  • list items Academic records (mark sheets and certificates)
  • list items Admission letter from the educational institution

Co-applicant Documents:

  • list items Identity proof (Aadhar card, Passport, Voter ID)
  • list items Residence proof (Utility bills, Passport)

Income Documents:

  • list items Latest salary slips or income tax returns
  • list items Bank statements of the last 6 months

It's important to note that the required documents may vary depending on the lender’s policy and the specifics of the loan.

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How to Apply for an Education Loan through GyanDhan?

Understanding how to get education loan after 12th is easy with GyanDhan. All you need to do is follow the given steps - 

  • list items Check Eligibility: Begin by checking your eligibility on the GyanDhan website.
  • list items Consult Education Loan Counselor: Get personalized advice by consulting with an education loan counselor.
  • list items Submit Documents: Provide all the necessary documents for processing your application.
  • list items Get Approval and Sign Agreement: Once approved, review and sign the loan agreement.
  • list items Disbursement: The loan amount will be disbursed as per the requirements stated in the admission letter.

Calculate your Education Loan EMI

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Expenses Covered under Education Loans

Education loans are designed to cover a wide range of expenses to ensure that students can pursue their education without financial hindrances. These typically include:

  • list items Interest rate: The amount of interest you'll pay on top of the principal loan amount.
  • list items Processing fee and time: The cost and duration required to process your loan.
  • list items Margin money: The percentage of the total expense that the bank will not cover.
  • list items Moratorium period: A grace period during which you are not required to make loan payments.
  • list items Tax benefit: Potential tax deductions available on the interest paid on the loan.
  • list items Loan duration: The total time you have to repay the loan.
  • list items Covered expenses: What the loan will cover, such as tuition, living expenses, books, and other academic fees.
  • list items Prepayment terms and conditions: Rules around repaying the loan early, including any penalties or benefits.

By carefully considering these aspects, students can make an informed decision that aligns with their financial and educational goals, setting a solid foundation for their future endeavors. And there you have it—a straightforward guide to understanding how to get education loan after 12th, navigating the world of education loans. Whether it's about choosing the right lender or understanding the nitty-gritty of loan options, we've got you covered. Remember, the right funding can set you on a path to academic and professional success without the burden of financial worry. If you're ready to take the next step towards securing your education loan, why not start with GyanDhan? Check your eligibility and find the best education loan tailored to your dreams. Let's make your educational journey as rewarding as it should be!

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Frequently Asked Questions

Can I apply for an education loan before getting my admission letter?

Yes, you can start the loan application process before receiving your admission letter. Many banks offer provisional loan sanction based on your entrance exam scores and the institutions you aim to apply to. However, the final approval and loan disbursement will require the admission letter.

How does my course and institution affect my loan approval?

The course and institution you choose significantly impact your loan approval chances and terms. Loans for courses and institutions with high employment rates often have better terms, reflecting the lower risk to the lender.

Can I get an education loan to study part-time or distance learning courses?

Yes, some lenders offer education loans for part-time or distance learning courses. However, the availability and terms of such loans can vary widely between lenders, and they may have different criteria compared to full-time courses.

What happens if I fail to complete my course on time?

If you fail to complete your course within the scheduled time, you should inform your lender immediately. Many banks provide an extension for the repayment period, but this is subject to the bank's discretion and may vary based on the reason for the delay.

How does co-applicant's credit score affect my education loan?

The credit score of the co-applicant plays a crucial role in the approval process of your education loan. A higher credit score can improve the chances of loan approval and may result in more favorable loan terms, including lower interest rates.

Check Your Education Loan Eligibility


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