Student Education Loan Application in Public Banks

Education loans provided by public banks have become a savior for numerous students, without crushing the academic dreams of many students. Banks governed by the government are known as Public Banks. If you are a student who is in need of a higher loan amount and wants to derive lower interest rates then public banks are your way to go.

 

Public banks are providing competitive interest rates, flexible repayment options, and often extended grace periods, which ultimately reduces the financial strain on students and their families. If you’re planning to apply for an education loan from a public bank, you will have to fill out the loan application form or you can also go to the nearest branch. 

 

Students who secure education loans from public banks avail of numerous benefits including lower interest rates, tax benefits, government schemes, and many more. We have listed some of the advantages of securing an education loan from public banks.

 

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  Lower Interest Rates - Compared to private lenders, public sector banks provide education loans at more affordable interest rates.

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  Subsidy Schemes - Eligible students from economically weaker sections can avail of government interest subsidy schemes like the Dr. Ambedkar Interest Subsidy Scheme.

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  No Prepayment Penalty - Public sector banks generally do not charge penalties for early loan repayment.

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  Tax Benefits - Education loans from public banks qualify for tax deductions under Section 80E of the Income Tax Act.

The PM-Vidya Lakshmi portal offers a solo window for students to acquire information and details about various loan schemes provided by public and private banks and make applications for them. The portal also facilitates the submission of applications for education loans and interest subsidy benefits. You can apply for an education loan by following the below steps:

 

Step 1: Visit the PM-Vidya Lakshmi portal and register yourself by providing your name, email ID, and mobile number, and create a secure password. After successful registration, log in using your email ID and password.

 

Step 2: Once logged in, fill out the Common Education Loan Application Form (CELAF). Enter your personal details, academic qualifications, course information, and other required details. Ensure all the information is accurate in the application form.

 

Step 3: After completing the application form, search for education loan schemes offered by various banks. Compare different loan options based on eligibility, interest rates, and terms. Select the loan scheme that suits your needs and click on “Apply”.

 

Step 4: Your application will be automatically sent to the bank or banks you have chosen. The bank will review your application and contact you in case they require any additional documents for processing your loan application. 

 

Step 5: You will receive SMS notifications about the status of your application at every stage. You can also log in to your PM-Vidya Lakshmi dashboard at any time to check the current status of your loan application.

 

Step 6: Once the bank approves your loan, they will update the status as Sanctioned or Disbursed on the portal. The loan amount will be disbursed according to the bank’s process.

 

Important note: Keep in mind that you can apply for a loan from a maximum of three banks by filling out a single loan application form.

The procedure to apply for an abroad education loan should always begin with exploring and comparing different lenders and their products. Borrowers win half of their battle as GyanDhan evaluates your profile and chooses the best lender for them. To apply for an abroad education loan through GyanDhan, you need to follow five simple steps mentioned below:

 

Step 1: Check your loan eligibility.

 

Step 2: Our expert education loan counselor will check and evaluate your profile.

 

Step 3: The team of GyanDhan will either arrange a doorstep pickup for your documents or will ask you to upload your documents.

 

Step 4: Once your documents are uploaded, GyanDhan will move forward with the rest of the formalities.

 

Step 5: Disbursement of the amount will be done by the bank as per schedule.

 

State Bank of India, is one of the greatest public banks in India. SBI is a popular choice for education loans amongst students and their parents. The education loan schemes of SBI are designed to help students and their parents in financing their education-related expenditures.

 

You will be glad to know that SBI provides both online and offline modes for applying for an education loan. 

Offline Application Mode:

To apply for an education loan in the offline mode, you need to go to the nearest SBI branch and initiate the procedure with the bank. If you decide to go with the offline mode, be prepared to make countless bank visits for the submission of the documents.

Online Application Mode:

To apply for an education loan in the online mode, you need to complete the below-mentioned steps.

 

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  Begin by visiting the official website of the State Bank of India.
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  On the homepage, you will see a 'Loans' or 'Education Loans' tab. Click on it to access information and details related to education loans.
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  SBI offers various education loan schemes, so vigilantly select the one that perfectly matches your needs. Go through the details, terms, and conditions of the chosen scheme thoroughly.
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  Click on 'Apply Now' or 'Online Application', or you can visit on the application form from here.
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  You will be prompted to fill in your personal, academic, and financial details. Ensure that you have all the required documents in your hand, including identity proof, address, academic records, and course admission letter.
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  Enter the details of the collateral and the co-applicant. Collateral may include property documents, fixed deposits, or other assets.
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  Scan your documents and upload the copies during the application process. 

 

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 broad range of financial products and services. Established in 1908, BOB has a powerful 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 Application Mode:

To apply for an education loan offline, find the nearest Bank of Baroda branch in your locality. Explore various loan options, fill out the application form accurately, and gather all the required documents such as ID, address proof, academic transcripts, and admission letter. Provide your application and documents to the bank's loan department for examination and potential approval based on their criteria.

Online Application Mode:

Follow these steps to complete the online application process at Bank of Baroda:

 

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  Begin by visiting the official website of the Bank of Baroda.

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  Look for the option 'Education Loan' or 'Loans' section on the website's homepage. Click on it to access details related to education loans.

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  Before applying for the education loan, ensure you meet the eligibility criteria which is set by BOB. 
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  BOB offers numerous education loan schemes for different purposes, such as studies in India or abroad. Choose the one according to your needs and which suits them the best.

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  Click on the option to apply for an education loan online. You will be directed to an application form after which you need to fill in all the required details accurately.

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  Upload the scanned copies of necessary documents, such as your admission letter, academic records, identity proof, address proof, etc.

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  Examine all the details you've provided, and once you're sure it's correct, submit the application.

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  After submission, you will get an application reference number. This reference number can be used to track the status of your application online.

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  Bank of Baroda will check your application, and if everything is in order, they will approve your loan.

Union Bank of India is one of the well-known 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. Both online and offline modes are available to apply for an education loan from Union Bank of India. 

Offline Application Mode:

To obtain an education loan from Union Bank of India through the offline mode, you need to visit the nearest branch. Then you can collect the application form and fill it out accurately, attach required documents, and submit it through the representative. Stay updated and in touch with the branch for application updates. Once approved, the bank will disburse the loan per the agreed terms.

Online Application Mode:

Follow these steps to complete the online application process at Union Bank of India:

 

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  Visit the official website of Union Bank of India.
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  Click on the "Education Loan" Section which is usually located in the "Retail" or "Personal Banking" section.
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  Click on the "Education Loan Scheme" option to access full information about the education loan, including eligibility criteria, interest rates, and documentation requirements.
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  Fill Out the online application form: 
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  Upload the scanned copies of necessary documents, such as proof of identity, address, admission letter, academic records, and collateral documents (if applicable). You need to make sure that all documents meet the bank's requirements.
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  Examine your application form and documents vigilantly before submitting. Any inaccuracies or incomplete information may delay the loan approval process.
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  After verifying the details, submit the online application. You will receive an acknowledgment or reference number for your application.
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  You can check the status of your application online using the reference number provided. The bank will communicate with you regarding the status of your application.