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Education Loan in Amritsar

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Brinda Khurana
Brinda Khurana
Updated on:  22 Jun 2024  | Reviewed By: 
Aman 
| 158 | 9  min read

This information will be helpful to you if you are a student in Amritsar and are thinking about getting a loan for your education there or in another area of India or overseas. In Amritsar, students typically need about INR 15 lakhs to finance their education domestically and approximately INR 75 lakhs to study overseas. Depending on the lender and loan type, interest rates for education loans in Amritsar can range from 8.35% to 13%. You can find more details below. 

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Best Banks for Education Loan in Amritsar 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) 

 

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Best Banks for Education Loan in Amritsar for studies in Abroad

Bank Name  Loan Amount  Processing Fee

State Bank of India 

Up to INR 1.5 cr with collateral 

INR 10,000

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 

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Documents Required for Education Loan in Amritsar 

Application form

A borrower must submit a fully completed loan application, along with two photos, a signature, financial data from their designated financial representative, and any additional requirements as specified by the lender, in order to be eligible for a loan.

Documents for Students:

  • list items Documents such as a passport, PAN card, or Aadhar card can serve as proof of identity.
  • list items A university's acceptance letter serves as evidence of enrollment.
  • list items One can confirm their residence via utility invoices, such as those for energy or property taxes.
  • list items To prove one's qualifications, educational records can be used. These include grade reports from grades 10 and 12, as well as diplomas or degrees from degree or certificate programmes.
  • list items Depending on the application, results from standardised tests like the GMAT, TOFEL, GRE, or IELTS may be needed.
  • list items In the event of an educational gap, a gap certificate might be required.
  • list items Relevant job experience can be confirmed with an employer's letter.

Documents for co-applicants:

The borrower's loan application must include financial documentation in addition to identifying documents. These records could contain, but are not restricted to:

  • list items Documentation for salaried co-applicant's may comprise the previous two years' worth of Form 16 and Income Tax Returns (ITRs), six months' worth of bank statements, a firm ID, and the previous three months' worth of salary slips.
  • list items The last three years' ITRs, six months' worth of bank statements, balance sheets, the previous three years' profit and loss reports, and verification of the business address are among the documents that may be required for self-employed people.

Additional Records:

  • list items A statement, in the manner prescribed by the assigned financial officer, stating the co-applicant is liable for any unpaid expenses not reimbursed by the loan.
  • list items A regular bank statement with the names of the co-applicant and the student on it.
  • list items Evidence of costs, such as airfare or a laptop, if the loan is being asked for in order to pay for these costs.
  • list items Records of any money received in advance.
  • list items Prior loan statements, if they are accessible.
  • list items On a stamp paper worth Rs. 100, a letter explaining any gaps in employment or income was written.
  • list items If required, a letter explaining why the co-applicant's income tax return is missing.
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Documents Required for Secured Loan in Amritsar 

If the co-applicant does not have any income tax returns, they may need to submit a basic income certificate in addition to the usual documentation needed when applying for an unsecured loan. More paperwork would be required for collateral to be pledged for a secured loan. 

Extra Paperwork for Amritsar Secured Loans

  • list items The formal record attesting to the ownership of the asset being pledged as collateral.
  • list items A properly registered document, accompanied by the original receipt, attesting to the property's sale, gift, or transfer of ownership.
  • list items A government authority's letter of allocation.
  • list items A group of records showing the property's ownership changes over the previous 30 years, including an official copy of the controlled document (EC)
  • list items The most recent electricity and property tax bills that correspond to the address of the property.
  • list items A copy of the property's authorised building plan or plot layout from the municipality.

Acceptable Collaterals in Amritsar for Education Loans 

  • list items In Amritsar, collateral for student loans can be real estate, including homes, apartments, or land. The borrower must provide all appropriate documentation, including an appraisal report, ownership verification, and any other documents needed to verify the property's value and condition, before using it as collateral.
  • list items Private banks might be open to accepting commercial real estate as loan collateral, but the collateral margin—the minimum value needed to qualify as acceptable collateral—is usually lower for commercial real estate than it is for residential. This implies that the value of the commercial real estate must be greater than the loan amount.
  • list items Only a few public banks in the city of Amritsar permit the use of agricultural land as collateral for student loans. A sworn declaration attesting to the applicant's income being derived exclusively from agricultural pursuits at the time the loan is being taken out is also required.
  • list items Depending on the exact kind, government bonds, insurance policies, and fixed deposits may all be accepted as security. When determining the value of collateral, banks usually take into account the face value of government bonds, the surrender value of insurance policies, and the principal amount of fixed deposits. It is noteworthy, nonetheless, that when compared to other kinds of properties, these assets typically have a higher collateral margin—that is, the minimum value necessary for the asset to be accepted as collateral.

 

Check Your Education Loan Eligibility

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Education Loan Interest Rate in Amritsar 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 Interest Rate in Amritsar 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 Amritsar 

Expenses Covered 

In India, education loans are generally used to pay for charges like books, supplies, and other necessities for the classroom as well as tuition and test fees. Living costs like rent and food may also be covered by some forms of financial assistance. 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 

A "moratorium period for an education loan " is a certain amount of time during which the borrower is exempt from having to return the loan. Usually starting after the borrower has finished their education, this period of time continues until they have a reliable source of income. Depending on the loan provider and the terms of the loan arrangement, the moratorium period's length can change, although it usually lasts six to twelve months following the course's completion. 

Loan Margin 

The portion of the entire loan amount that the borrower must pay with their own money is known as the loan margin.If the margin percentage is set at 5%, for instance, the borrower will be liable for paying 5% of the loan amount, with the lender covering the other 95%. This is an illustration of how margin works. Lenders can reduce their risk in the event that the borrower is unable to repay the loan by doing this. To understand the loan margin and any other applicable restrictions, it is imperative that you carefully go over the terms and circumstances of the loan. 

Collateral Margin 

The percentage of a loan that is secured with collateral is known as the collateral margin. This collateral acts as a guarantee for the loan, and the lender may take possession of it to recoup its losses if the borrower defaults. Collateral margins are a common tool used by lenders to lower risk.

 

Check Your Education Loan Eligibility

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Common Reasons for Education Loan Rejection in Amritsar 

It is noteworthy that a significant proportion of students from the state of Punjab lack Income Tax Returns (ITRs), which are necessary in order to be eligible for a loan from banks and Non-Banking Financial Companies (NBFCs). If sufficient collateral is offered, loans may occasionally be approved without ITRs, although this is not a given.

It's also important to keep in mind that banks typically do not accept agricultural lands as security, so it's best to look for alternatives like residential or commercial properties. It is also important to note that non-family members' properties may be used as collateral. In addition, Punjabi students frequently apply for certificate programmes, postgraduate diplomas, and undergraduate diplomas in addition to traditional degree programmes.

It's vital to remember that loans are typically not given for certificate programmes, that loans for postgraduate diplomas can be obtained with or without collateral, and that loans for undergraduate diplomas have a 50/50 probability of being approved with collateral. Therefore, it is essential to evaluate the loan availability for each programme while thinking about educational options. 

In Amritsar 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.