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Education Loan in Ahmedabad

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Brinda Khurana
Brinda Khurana
Updated on:  24 Jun 2024  | Reviewed By: 
Aman 
| 180 | 8  min read

Aspiring students can profit immensely from knowing the advantages and possibilities of education loans in Ahmedabad, the energetic city in Gujarat. We will go over the many facets of school loans, qualifying requirements, well-known lenders, and crucial data in this extensive guide to assist you in making an informed choice.

The average amount of money Ahmedabad students need to pay for their education in India is INR 15 lakhs. But if students choose to study overseas, the required funding rises to almost INR 45 lakhs. Interest rates for education loans in Ahmedabad range from 8.5% to 13%, based on the type of loan and the lending institution used.

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Education Loan Providers in Ahmedabad for Studies in India 

Bank Name  Loan Amount Processing Fee

State Bank of India 

Up to INR 50 lakh

Nil - INR 10,000+Tax 

Axis Bank 

Up to INR 75 lakh (unsecured) 

Up to 2% of the amount+GST 

ICICI Bank 

Up to INR 1 crore 

Up to 2% of the amount +GST

IDFC First 

Up to INR 30 lakh (unsecured) 

Up to 1.5% of the amount 

UBI 

Up to INR 1.5 cr (secured) 

Up to INR 40 lakh (unsecured)

INR 5000 (refundable) 

HDFC Credila 

Up to INR 20 lakh 

1% + GST 

Auxilo 

Up to INR 65 lakh 

Up to 2% of the sanctioned loan amount 

Avanse

Up to INR 75 lakh

0.5% - 1.5% 

InCred 

Up to INR 60 lakh

0.75% - 1% of the sanctioned loan amount

BOB 

INR 7.5 lakh - INR 1.5 cr 

1% (max. INR 10,000) 

Check Your Education Loan Eligibility

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Education Loan Providers in Ahmedabad for Studies in Abroad

Axis Bank

Prime A - INR 50 lakh 

Prime B - INR 40 lakh 

0.75% on the sanctioned loan amount 

ICICI Bank 

Up to INR 2 cr (secured) 

Up to INR 1 cr (unsecured) 

Up to 2% + GST 

IDFC First Bank

Up to INR 50 lakh without collateral 

Up to 1.5% of the sanctioned loan amount 

Union Bank of India 

Up to INR 1.5 cr (secured) 

Up to INR 40 lakh (unsecured) 

INR 5000

HDFC Credila 

Up to INR 65 lakh 

0.5% - 1% 

Avanse 

Up to INR 75 lakh 

1% - 1.5% 

Auxilo 

Up to INR 65 lakh 

0.5% - 1.5% 

InCred 

Up to INR 60 lakh 

1% - 2% 

MPower Financing

Up to 100,000 USD 

5% (adjusted in the loan amount) 

Prodigy Finance 

Up to 100% cost to study 

Up to 5%, added to loan amount 

Bank of Baroda 

Up to 1.5 cr with collateral 

INR 10,000 + GST 

Check Your Education Loan Eligibility

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Documents Required for Unsecured Loan in Ahmedabad 

Student Documents

  • list items To prove their identity, the applicant must provide identifying documents such as a passport, PAN card, and Aadhar card.
  • list items A letter of admission from a university is required for the loan application.
  • list items The applicant must present utility invoices, such as those for electricity and property taxes, as proof of residency.
  • list items Submission of required academic records is required. These records include transcripts from grades 10 and 12, as well as degrees or diplomas obtained.
  • list items Exam results from tests like the GRE, GMAT, TOEFL, and IELTS can be used to gauge a candidate's intellectual aptitude and language competency.
  • list items If the applicant's educational chronology has any gaps, they must provide a gap certificate explaining the reason for the discontinuity.

Co-applicant Documents 

  • list items The loan application procedure requires additional financial documentation in addition to identity verification.
  • list items Payroll records for the last three months, bank statements for the previous six months, a firm ID, the previous two years' Form 16, and the previous two years' income tax returns (ITRs) are required for those who are salaried.
  • list items The required financial records for self-employed individuals include the last three years' ITRs, the previous six months' bank statements, a balance sheet, the previous three years' profit and loss account, and verification of the business address.

Other Documents 

  • list items It is necessary to submit a co-applicant's letter stating that they are responsible for any remaining costs that are not reimbursed by the loan. A prescribed format for this letter will be supplied by the designated financial officer.
  • list items A detailed bank statement that includes the co-applicant's and student's information is required.
  • list items An invoice for these items must be included with loans meant to pay for things like travel or a laptop purchase.
  • list items For the purpose of verification, all prepaid transactions should have receipts available.
  • list items The application must contain the loan statements from the preceding year, if appropriate.
  • list items It may be necessary to obtain a letter, written on stamp paper worth Rs. 100, explaining any gaps in employment or income.
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 Documents Required for a Secured Loan in Ahmedabad

If a co-applicant does not have income tax returns, they may also need to submit a basic income certificate in addition to the regular documents required for unsecured loans. Borrowers need to provide extra documentation for secured loans as evidence of pledged collateral. 

Extra Documentation for Ahmedabad Secured Loans

  • list items Evidence of ownership for the asset put up for collateral, such as a title deed or other pertinent title documentation.
  • list items Documentation of any relevant legal arrangements, such as gift deeds, registered sale agreements, or wills that define the property's ownership and transfer.
  • list items A commercial or industrial property allotment letter from an approved government body, such as Gujarat Industrial Development Corporation (GIDC).
  • list items Historical documents that document the transfer of property ownership over a thirty-year period or a series of prior sale deeds. An extract from the Encumbrance Certificate (EC) may be included with this as supporting documentation.

The latest electricity and property tax bills, both of which prominently display the address of the property.

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Education Loan Lenders Interest Rate in Ahmedabad for Studies in India 

Bank Name  Interest Rate 

State Bank of India 

Starts from 8.30% 

(0.60% Business strategy discount, 0.50% - for female students and 0.50% - Rinn Raksha)

Axis Bank 

Starts from 11.5% 

ICICI Bank 

Starts from 10.5% -11% 

IDFC First 

Starts from 8.5% - 10% 

UBI 

Starts from 11.15% 

HDFC Credila 

Starts from 10.25% - 12.75% 

Auxilo 

Starts from 11% - 13.5% 

Avanse

Starts from 11% - 13.5% 

InCred 

Starts from 11% - 13.5% 

BOB 

Starts from 8.85% 

Calculate your Education Loan EMI

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Education Loan Lenders Interest Rate in Ahmedabad for Studies in Abroad

Bank Name  Interest Rate 

State Bank of India 

Starts from 10.15% 

(0.5% concession in interest for female students and 0.5% - Rinn Raksha )

Axis 

9.99% - 12.5% 

ICICI 

10.95% - 12.5% 

IDFC First 

9.5%-11% (secured) 

10.75%-13% (unsecured) 

UBI 

9.25% - 9.75% 

HDFC Credila 

10.25% - 12.75% 

Avanse 

10.75% - 13% 

Auxilo 

11.5% - 13% 

InCred 

11.85% - 13.25% 

MPower 

12.99% - 15.99% 

Prodigy 

11.5% - 13.5% 

BOB 

9.7% (fixed) 

(0.20% concession in interest for female applicants of non-premier institutes)

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Other Education Loan Features Offered by Banks and NBFCs in Ahmedabad 

Expenses Covered

  • list items In addition to tuition, education loans can be used to pay for a range of additional costs, including study materials, textbooks, and housing costs.
  • list items Certain lenders offer a comprehensive financial solution by extending their coverage to cover living expenditures such as housing and food.

It is critical to thoroughly examine the loan terms and conditions to determine what expenses are covered in education loan. The lender may have certain rules or limits regarding how the loan might be used.

Moratorium Period 

  • list items In Ahmedabad, student loans have an extended grace period.
  • list items Borrowers are not obliged to make any loan repayments during this time.
  • list items Usually lasting between six and twelve months following course completion, the moratorium period for an education loan allows borrowers to plan their loan repayment strategy and transition into their careers.

Loan Margin 

  • list items The percentage of the total loan amount that is the borrower's personal contribution is known as the loan margin.
  • list items For example, the borrower must pay back 5% of the loan amount if the loan margin is set at 5%.The lender covers the remaining 95%.
  • list items In the event that the borrower is unable to repay the loan, lenders use the loan margin to reduce their risk.

Collateral Margin 

  • list items Collateral may be required in Ahmedabad as a security precaution for school loans.
  • list items A portion of the loan amount that is backed by the borrower's assets is known as the secured education loan with collateral.
  • list items Lenders are reassured and their risk exposure is decreased as a result, guaranteeing the preservation of lenders' interests as well as borrowers' hopes.

Check Your Education Loan Eligibility

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Common Reasons for Education Loan Rejection in Ahmedabad

  • list items Low Credit Score: Lenders may become concerned if a borrower has a low credit score. Generally speaking, most banks want a CIBIL score of 685 or more. In addition, they take into account the borrower's credit history, ideally free of significant problems such as delinquent loans or returned checks. Overcoming this challenge could be facilitated by developing a solid credit profile or by having a co-signer with a solid credit history.
  • list items Absence of Guarantor or Collateral: Qualified Guarantors or Collateral are frequently required for Secured Education Loans. Rejection may result from failing to present acceptable collateral or a qualified guarantor who satisfies the lender's standards.
  • list items Inaccurate or Incomplete Documentation: Your loan application may be denied or be delayed as a result of incomplete or inaccurate documentation. Make sure that all necessary papers are submitted correctly and in the appropriate format.
  • list items Unapproved Course or Institution: A list of approved courses and institutions is one of the specific requirements that certain lenders have for granting education loans. To prevent rejection, make sure the school or course you have chosen meets the requirements set forth by the lender.

In Ahmedabad and exploring education loan options? GyanDhan is your go-to platform, offering a pathway to secure financing for your higher studies in India or abroad. Our education loan experts help you in securing high loan amounts under favourable terms with a track record of higher loan approval rates. We also assist with pre-visa loan disbursement, crucial for your visa application. Best of all? Our expert, end-to-end service comes at absolutely no extra cost to you. Check your loan eligibility on GyanDhan now and take the first step towards realizing your academic dreams.