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Read GyanDhan’s guide on how to apply for an education loan
Education loans offered by public banks have become a lifeline for countless students, making academic dreams a reality. Public banks are banks that are governed by the government. If you are a student who requires a higher loan amount and want to enjoy lower interest rates then public banks are your way to go.
Public banks offer competitive interest rates, flexible repayment options, and often, extended grace periods, ensuring that the financial strain on students and their families is minimized. If you want to apply for an education loan from a public bank then you can either fill the loan application form or visit the nearest branch.
Check Your Education Loan Eligibility
Feature | Description |
---|---|
Lenders |
SBI, BOB, UBI |
Loan amount |
Up to INR 1.5 Cr |
Interest rates |
9.5 - 11% |
Moratorium period |
Course duration + 12 months |
Repayment during course |
Nil |
Processing time |
Up to 15 - 30 days |
The Vidya Lakshmi portal provides a single window for students to access information about various loan schemes provided by banks and make applications for them. To apply for an education loan via the Vidya Lakshmi portal, follow these steps:
Step 1: Start by filling out the Common Education Loan Application Form (CELAF). This is a crucial initial step for your loan application. Access the dashboard and click on the 'Loan Application Form' tab.
Step 2: Next, click on the orange tab labeled 'Search and Apply for Loan Scheme' on the dashboard. This will allow you to explore and apply for various education loan schemes available.
Step 3: Use the provided filters to refine the search results according to your specific requirements. You can filter the schemes based on factors such as whether it is for domestic or international study, the level of the course, and the desired loan amount.
Step 4: Once you have applied the filters, a list of suitable loan schemes will be displayed. Each scheme will have an option to apply for it.
Step 5: Click on a particular scheme that interests you, and you will be redirected to a page providing detailed information about that specific scheme. Review the details carefully to ensure it aligns with your needs.
Important note: Keep in mind that you can apply for a loan from a maximum of three banks, and only one scheme per bank can be selected for the application.
The process to apply for an abroad education loan should always start from exploring and comparing different lenders and their products. Borrowers win half the battle as GyanDhan evaluates your profile and selects the best lender for them. To apply for an abroad education loan through GyanDhan, you need to follow five simple steps.
Step 1: Check your loan eligibility.
Step 2: Expert education loan counselor will evaluate your profile.
Step 3: Team GyanDhan will either arrange a doorstep pickup for your documents or you have to upload documents.
Step 4: Once the documents are uploaded, GyanDhan will proceed with the rest of the formalities.
Step 5: The bank will disburse the amount as per schedule.
State Bank of India, is one of the largest public banks in India. SBI is a popular choice for education loans amongst students and their parents. SBI's education loan schemes are designed to assist students and their parents in financing their educational expenses.
SBI provides both online and offline modes for applying for an education loan.
Offline procedure:
To apply for an education loan in the offline mode, you need to visit the nearest SBI branch and initiate the process with the bank. If you opt for the offline mode, get ready to make multiple bank visits for submitting documents.
Online procedure:
To apply for an education loan in the online mode, you need to complete the following steps.
Did you know that GyanDhan is in partnership with SBI? So if you apply for an abroad education loan at SBI through GyanDhan you are eligible for a free doorstep document collection.
Bank of Baroda (BOB) is one of India's leading public sector banks, known for its wide range of financial products and services. Established in 1908, BOB has a strong presence not only in India but also in several countries around the world. When it comes to education loans, BOB offers competitive options to help students pursue their dreams of higher education both in India and abroad.
Bank of Baroda provides two main channels for applying for an education loan: online and offline.
Offline procedure:
To apply for an education loan offline, find the nearest Bank of Baroda branch in your vicinity. Inquire about the loan options, fill out the application form accurately, and gather all necessary documents such as ID, address proof, academic records, and admission letter. Submit your application and documents to the bank's loan department for review and potential approval based on their criteria.
Online procedure:
Union Bank of India is one of the prominent public sector banks in India that offers education loans to eligible students to pursue higher education in India and abroad. These loans help students and their parents finance the cost of tuition fees, books, accommodation, and other related expenses. Applying for an education loan from Union Bank of India can be done through both online and offline modes.
Offline mode:
To obtain an education loan from Union Bank of India through the offline mode, visit the nearest branch. Next, collect the application form. Fill out the form accurately, attach required documents, and submit it through the representative. Stay in touch with the branch for application updates. Once approved, the bank will disburse the loan per the agreed terms.
Online Mode:
Did you know that Union Bank of India is the only public bank that provides abroad education loans of up to INR 40 Lakh, without any collateral. The Bank approves unsecured abroad education loans for selected courses and universities. To check if your targeted university is listed in the Union Bank’s pre-approved list, request a callback.
Punjab National Bank (PNB) is one of the leading public sector banks in India, offering a range of financial products and services, including education loans to help students pursue higher education in India and abroad. These loans cover tuition fees, living expenses, and other related costs. To apply for an education loan from Punjab National Bank, you can choose between online and offline application modes.
Offline application mode:
To apply for an offline education loan through Punjab National Bank (PNB), follow these steps:
Online application mode:
Follow these steps to complete the online application process at PNB:
To apply for an education loan at a public bank, you are required to submit or upload the following documents.
Applicants' documents
Co-applicant’s documents
Income proof for salaried co-applicant/guarantor
Income proof for self-employed co-applicant/ guarantor
Documents required for loan against property
The list of documents required for collateral based education loans depends on several factors, primarily: property type, purchase history, and location. Broadly, the following documents are required:
Common documents:
Additional documents if you’re applying for an education loan with a property in the following cities:
1. Mumbai or Pune
2. Hyderabad
3. Bengaluru
Applying for an education loan from a public bank can be a significant step in funding your education. To ensure a smooth and successful application process, it's essential to avoid common mistakes that can lead to delays or rejections. Here are some mistakes to avoid when applying for an education loan from public banks:
Applying for a student loan through public banks can be a viable and affordable option for those seeking financial assistance to pursue their higher education dreams. Public banks offer competitive interest rates, flexible repayment options, and government-backed schemes that provide a safety net for borrowers. Moreover, the accessibility and widespread network of public banks make them a convenient choice for students across the country.
However, navigating the intricacies of the loan application process can be challenging, and it's crucial to stay informed and make well-informed decisions. This is where GyanDhan comes into play. With our expertise, personalized guidance, and an extensive network of partner banks and lenders, we simplify the application process, help you find the best loan options, and ensure you make the most of your education financing.
So, if you are on the lookout for a hassle-free student loan experience with the added advantage of expert assistance, don't hesitate to give GyanDhan a try. We are here to help you achieve your academic goals without any financial stress. To start your education loan journey with us, check your education loan eligibility.
Read Also
There isn't a one-size-fits-all answer to this question as the best bank for an education loan can vary based on your individual circumstances and the terms offered by different banks. Some popular public banks in India that offer education loans include State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BOB), Canara Bank, and others. It's advisable to compare the interest rates, loan terms, and eligibility criteria of various banks before making a decision.
The best way to apply for an education loan is to apply through GyanDhan, India’s first education financing marketplace. With partnerships with leading lenders such as State Bank of India, Bank of Baroda, ICICI Bank, Axis Bank, and HDFC-Credila, we provide the best loan option to aspiring students. To secure an education loan from a government bank, check their loan eligibility.
To initiate an education loan application, first, check your eligibility and choose the right lender. Collect the required documents. Next, complete the application online or in person, providing accurate information. If needed, arrange for a co-signer with good credit. Await the lender's decision, review the loan terms upon approval, and accept the loan.
Check Your Education Loan Eligibility
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