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Education Loan in Coimbatore

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Brinda Khurana
Brinda Khurana
Updated on:  14 Jun 2024  | Reviewed By: 
Aman 
| 134 | 10  min read

There are numerous locations in Coimbatore where you can apply for loans to support your post-secondary education. You can get these loans from NBFCs, private banks, and government banks. Whether you wish to study domestically or overseas, these institutions offer various financial aid packages. When determining how to pay for your education, they make sure to give you the appropriate amount of money depending on your unique requirements from the education loan and other eligibility conditions.

The interest you must repay on these loans is one of its key features. Typically, interest rates for education loans ranges from 8.5% to 13%. This is dependent upon the course you are taking and the nation you have selected.

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Banks that Provide Education Loan in Coimbatore 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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Banks that Provide Education Loan in Coimbatore 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 an Unsecured Education Loan in Coimbatore 

List of Student Documents

Official University Acceptance: The official letter of acceptance from the university attesting to your enrollment in the course of your choice.

Academic History Records: These records include transcripts, certificates, and other pertinent documentation that highlight your development and accomplishments. They offer a summary of your academic career.

Financial Records

Detailed Fee Breakdown: A thorough summary of all the costs associated with your education, including tuition, fees for exams, housing, and other pertinent expenses while you are a student.

Age and Identity Verification

Age confirmation is the process of confirming that you meet the required minimum age requirements for the course you have selected. Typically, this entails turning in formal paperwork that shows your date of birth, such as a passport or birth certificate.

Identity Proof: For security and administrative reasons, proving your identity is essential. Identification documents that are recognised, such as a driver's licence, passport, PAN card, or Aadhaar card, are needed for this.

Passport size photographs: Passport photos are small images that adhere to strict specifications and are used for official papers or university ID cards, among other identity purposes.

Proficiency Tests: To evaluate your talents, universities frequently need the results of standardised tests. For example, results from tests such as the TOEFL or IELTS may be required if you are applying to an overseas programme and English is not your first language. Exams like the GMAT and GRE assess candidates' preparedness for advanced coursework.

Verification of Address

Verification of Residence: In order to communicate, your current address is required. Utility bills, rental agreements, Aadhaar cards, and voter IDs are examples of documents that authenticate your address for efficient communication.

List of Co-applicant Documents 

Identity Confirmation

ID of co-applicant: If a co-applicant backs your application, their identification needs to be verified as well. Passports and other official ID documents, like Aadhaar cards and PAN cards, are needed.

Address Validation: For proper correspondence, the co-applicant's address needs to be verified in a manner similar to your own.

Co-applicant images: To ensure proper linkage with the application, recent images of co-applicants are required for identification.

Financial Validation 

Income Proof: Documents such as pay stubs, income tax returns, or bank statements are required to verify the co-applicant's financial capacity. These exhibit consistency and room for growth.

Relationship Confirmation: Documents confirming the relationship, such as birth certificates or legal affidavits, are required if the co-applicant is a family member.

 

Check Your Education Loan Eligibility

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Documents Required for a Secured Education Loan in Coimbatore

Property Authentication 

Ownership Proof: To ensure that a property is eligible to be used as loan security, documentation proving legal ownership must be provided if the property is being offered as collateral.

Verifying the Property's Clear Status: A certificate attesting to the absence of any monetary or legal encumbrances guarantees the property's clear status.

Title Deed: An essential legal document that acts as an official ownership record and validates ownership rights.

Assessment of Property

Valuation Report: This evaluates the market worth of collateral property to help the lender calculate the loan value.

Society/Association Consent: In the event that the property is owned by a housing society, the society's consent must be obtained as collateral.

Land Ownership Verification: Collateral legitimacy is established by documents attesting to the legal ownership of land.

Possession Certificate: This paperwork attests to your ownership and control of the property.

Coimbatore Property Letter: The location and condition of Coimbatore property are verified by an official allocation letter issued by the Coimbatore Development Authority (ADA).

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Permissible Collaterals for Education Loans in Coimbatore 

Your Residence: If you own a home or flat, you can use it as collateral to obtain a student loan. Just make sure there are no legal issues and that you have valid ownership documents. This facilitates the procedure.

Business Property: Similar to residences, you can use your business or office as collateral. All you have to do is demonstrate that it is yours and abide by the law.

Fixed Deposits: You can utilize the funds in a bank's fixed deposit to obtain loan security. Depending on what you've placed, the bank may lend you a portion of the whole amount if they agree. You now have additional financial choices.

Insurance: You can use the money from your insurance policies, if you have any, to secure your student loan. Typically, the lender uses a portion of the policy's value to determine how much you can borrow.

Government Bonds: You can purchase specific certificates from the government, such as National Savings Bonds, which you can then use as security for a student loan. You'll feel more assured about achieving your educational objectives if you use these relationships.

Land or Farm Property: If you own land or a farm and it satisfies the lender's requirements and you don't have any legal issues, you can utilize it to obtain a loan for schooling. You now have more alternatives to ensure that you have the funds necessary for your study. 

Calculate your Education Loan EMI

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Education Loan Interest Rates in Coimbatore 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% 

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Education Loan Interest Rates in Coimbatore 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)

 

Check Your Education Loan Eligibility

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Other Features Offered by Banks and NBFCs in Coimbatore

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 Surat has a long moratorium period for an education loan on education debts.
  • list items Borrowers are not obliged to make any loan repayments during this time.
  • list items Usually, the moratorium period lasts six to twelve months following the course's conclusion.
  • list items It enables borrowers to successfully organise their loan repayment strategy and launch their professions.

Loan Margin 

  • list items The proportion of the total loan amount that the borrower must personally contribute is known as the loan margin.
  • list items For instance, if the loan margin is 5%, the lender will cover the remaining 95% of the loan amount, with the borrower contributing the remaining 5%.
  • list items Lenders can reduce their risk in the event of non-repayment by using the loan margin.

Collateral Margin 

  • list items A secured education loan with collateral may be required as a security precaution for certain Surat education loans.
  • list items The percentage of the loan amount secured by the borrower's assets is indicated by the collateral margin.
  • list items Lenders receive comfort from it and are exposed to less risk. This guarantees the preservation of the goals of the borrowers as well as the interests of the lenders.
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Eligibility Criteria for an Education Loan in Coimbatore 

Age-Based Eligibility: Coimbatore residents must be between the ages of 18 and 35 in order to be eligible for an education loan. If you fall into this particular category, you can apply for an education loan.

Academic Achievements: It's critical to emphasize a strong academic background when applying for an education loan. This entails fulfilling the minimal educational requirements set forth by the college or programme you want to enroll in. If you meet these conditions, you are deemed qualified to apply for an education loan.

Verifying Enrollment: Verifying your admission to an accredited educational school is a critical first step in getting your loan approved.

Nationality and residency: Only Indian citizens or those with legitimate documentation proving their residency in India are eligible for education loans in Coimbatore. This requirement makes sure that loans are only given to people who are eligible and have the right paperwork to continue their education domestically or overseas.

The co-applicant's or applicants' financial history: The financial background of your co-applicant—who may be a parent, sibling, or legal guardian—is significant. Their capacity to make payments on time is demonstrated by a high credit score, which helps your loan application get accepted.

Approved Courses and Universities: It is essential to choose courses and institutions that have received official recognition and accreditation. This guarantee provides a top-notch educational experience by ensuring that the instruction you get meets set standards.

Submission of Necessary Documents: Providing the required documentation is crucial, just like it is for every loan application. WeMakeScholars will give you a detailed list of the required documents. This makes it easier for you to meet the requirements set forth by the lender and expedites the application procedure for an education loan.

In Coimbatore 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.