Education Loan in Assam

If you are a student from Assam, aiming to pursue higher education with limited funds, then an education loan could be your ticket to success. There are numerous education loan options designed for you, whether you are planning your studies in India or abroad. With rising costs of living and tuition fees, many students choose it as an option to fund their higher education.

If you are from Assam, the Abhinandan Education Loan Scheme can give you extra help by reducing your loan burden. In the fiscal year 2024-2025, the Assam government has allocated 17% of its expenditure to education, which is higher than the average allocation by other states. This high percentage reflects the commitment of the Assam government to promote higher education among students. 

Top Lenders Providing Education Loans in Assam For Studies in India

Below are some of the top lenders providing education loans including the Assam Gramin Vikash Bank loan scheme, if your aim is to pursue higher education in India with the assistance of an education loan. Explore their interest rates, margin money, and processing fees to evaluate which lender best suits your financial needs. 

Top Lenders Providing Education Loans in Assam For Abroad Studies 

The table given below will help you understand the various loan products offered by different lenders for abroad studies. 

Top Features of Education Loans from Banks and NBFCs in Assam

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  Expenses Covered - Tuition fees, accommodation charges, examination, library, and laboratory fees, cost of books and study materials, travel expenses.

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  Moratorium Period - A grace period is offered to students wherein students are not required to make EMI payments. This period covers course duration plus 6 to 12 months.

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  Margin Money - It is the percentage of total educational expenses that the borrower has to contribute from his pocket. Eg. a 10% margin on an INR 40 lakh loan means the student must contribute INR 4 lakh.

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  Tax benefits - Under section 80E allow borrowers to claim the deduction on the interest paid on loans.

Documents Required for an Education Loan in Assam

To avail of the benefits of the education loan scheme in Assam, you must prepare the below-mentioned documents before applying for an education loan.

Documents Required to be Submitted by the Student:

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  Loan application form.
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  Passport-size photograph (3 copies).
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  Identity proof - copy of PAN card.
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  Address proof - electricity bill/ domicile certificate/ landline telephone bill/ aadhar card/ driving license/ passport. 
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  Marksheets and pass certificates up to the last qualifying examination.
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  Bonafide certificate from the institution/ offer letter.
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  Prospectus of the course and approval copy of AICTE/UGC or governing body for the course.
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  Detailed fee structure of the course on the letterhead of the institution. 
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  Score sheet of entrance tests like JEE/PMT.

Additional Documents for Abroad Studies:

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  Passport 
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  Unconditional offer letter
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  Standardized exam scores (GRE/ GMAT)
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  English language proficiency test scores (IELTS/ TOEFL)

Documents Required to be Submitted by the Co-Applicant:

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  Passport-size photograph (3 copies).
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  Copy of PAN card.
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  Copy of bank account statement and bank passbook.
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  Form 16/ITR/ income certificate from Circle officer, Revenue Circle officer, or Deputy Commissioner (DC) Office. 
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  Loan statements for any existing liabilities from the previous year.

Collateral Documents Required for a Secured Education Loan in Assam:

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  Registered sale Deed.
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  Patta/ Jamabandi copy (Land Record showing ownership).
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  Chain of Ownership Documents.
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  Building Plan Approval Letter (For constructed property).

Assam Abhinandan Education Loan Subsidy Scheme

The Abhinandan Education Loan Subsidy Scheme is an initiative launched by the Government of Assam to encourage higher education by providing financial assistance to students who have taken education loans. Under this scheme, eligible students can avail of a one-time subsidy of INR 50,000 on their education loans. The scheme aims to reduce the burden of education loans on families and promote higher education among students from Assam by providing direct financial support. 

Eligibility Criteria for the Abhinandan Education Loan Subsidy Scheme:

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  Permanent Resident of Assam.
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  Education loans must be sanctioned by a Scheduled Commercial Bank or a Regional Rural Bank operating in Assam.
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  The loan amount should be a minimum of INR 1,00,000.
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  Only one beneficiary per family is eligible for the subsidy.

Application Process of Government Subsidy Loan Scheme:

You can take advantage of the Abhinandan Education Loan Subsidy Scheme and apply for a subsidy loan in Assam. Follow the below-mentioned steps and secure the benefit of the scheme.

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  Visit the official portal of the Assam Government for the Abhinandan Scheme.
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  Navigate to the "Click here for Loan Subsidy" section.
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  Fill in the mandatory details.
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  Upload the necessary documents.
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  Review the “Declaration”, and click "Save".
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  Submit the application. 

Common Reasons for Education Loan Rejection in Assam

Below are some of the common reasons that lead to the rejection of an education loan in Assam. 

Low Academic Performance:

Lenders in Assam prefer students with strong academic records since it assures them of the ability of the student to complete the course successfully and repay the loan amount. 

Inadequate Collateral for Secured Loans:

The loan application can be rejected if the collateral offered by the borrower does not meet the valuation criteria of the bank, has legal disputes, or has incomplete documentation. 

Poor Credit Score of Co-applicant:

 A co-applicant with a poor credit history may lead to rejection of a loan. Lenders consider this as a risk since the repayment responsibility often falls on the co-applicant. 

Low or Unstable Income of Co-applicant:

A loan application can get rejected if the co-applicant of the borrower does not have a stable job or their income is insufficient. Lenders consider them incapable of managing repayment. 

Incomplete Documentation:

Another common reason for loan rejection is the submission of incomplete, incorrect, or outdated documents. 

Discrepancies in Land Documents:

In Assam, many times land records are not updated, or mutation is left pending. This can lead to the rejection of secured loans as banks require clear land titles for collateral.

Securing an education loan in Assam has become easier with various government initiatives and support from public and private banks, including Assam Gramin Vikash Bank. Whether you are planning to study in India or abroad, it is important on your part to understand the eligibility criteria, documents required, and loan offerings by different lenders to make an informed decision.

However, choosing the right lender and handling all the paperwork can still feel confusing. This is where GyanDhan can help! We make the entire process hassle-free for you by connecting you with the best lenders and guiding you at every step. We negotiate the best deals for you that align with your financial needs. Whether you're planning to study in India or abroad, GyanDhan ensures you get the right loan with the best terms. Why wait? Check your loan eligibility today.

Frequently Asked Questions