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Education Loan in Guntur

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Brinda Khurana
Brinda Khurana
Updated on:  14 Jun 2024  | Reviewed By: 
Aman 
| 125 | 9  min read

This information is pertinent to you if you are a Guntur student considering taking out an education loan to study overseas or in India. Based on statistical data, Guntur students typically require education loans totaling approximately INR 15 lakhs to pursue their studies domestically, and approximately INR 45 lakhs to pursue their studies overseas. Depending on the lender and loan type, interest rates for education loans in Guntur range from 8.5% to 13%. Below are further specifics. 

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Education Loan Providers in Guntur 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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Education Loan Providers in Guntur 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 Guntur

Application form

A loan application form with your basic information officer, two pictures, and a signature.

Documents for Students:

  • list items Identification documents: The applicant's passport, PAN card, and Aadhar card
  • list items A university's admissions letter
  • list items Utility bills: Property tax and electricity bill
  • list items Academic records: Diplomas, degrees, and 10th and 12th
  • list items Results of competitive examinations: IELTS, TOFEL, GMAT, and GRE Gap Certificate for any degree gaps
  • list items Letter of work experience, if relevant

Documents for co applicants:

  • list items Financial records of co-applicant's are also necessary, in addition to identity documents.
  • list items For those on salaries: Last two years' worth of Form 16, last two years' worth of ITRs, last three months' worth of pay stubs, last six months' worth of bank statements, business ID
  • list items For independent contractors: Last three years' ITRs, six months' worth of bank statements, a balance sheet, the previous three years' profit and loss account, and documentation of the business address

Additional Records:

  • list items A letter (format issued by an assigned financial officer) confirming that the co-applicant is accountable for any outstanding expenditures not covered by the loan
  • list items A bank-issued statement that details the co-applicant's and student's financial activity.
  • list items An invoice for costs incurred, like travel or a laptop, in the event that a loan is being sought for these things
  • list items Receipts for any prepayment transactions
  • list items statement of loans from the prior year, if any
  • list items A letter on stamp paper costing Rs. 100 clarifying any gaps
  • list items If applicable, a letter describing why a co-applicant's income tax return is missing

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Documents Required for Secured Education Loans in Guntur 

An additional document needed for an unsecured loan is the co-applicant's basic income certificate, if they don't have an ITR. The following documents are also needed for a secured loan in order to verify the collateral being pledged. 

Additional Documents for Guntur Secured Loans

  • list items Title deed for the asset being pledged as security
  • list items A gift deed, registered sale agreement, or will
  • list items Original receipt for the previously mentioned agreement
  • list items Letter of allotment from a government agency, such as the Urban Development Authority (UDA) of Vijayawada Guntur Tenali Mangalagiri (VGTM).
  • list items Thirty years' worth of records demonstrating the property's ownership transfer or an older chain of sale deeds proving ownership, together with a copy of the regulated document (EC)
  • list items The most recent electricity and property tax bills for the same address as the property
  • list items A copy of the property's building design or plot layout that has been approved by the municipality.
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Permissible Collaterals for Education Loans in Guntur 

  • list items Land, houses, and apartments are all acceptable; nevertheless, the sale of D-form patta lands is limited according to the allotment recipient. After ten years, the land may be sold if it is given to former service members. After thirty years, the land may be sold if it is assigned to another person. Following this time frame, banks might think about making loans on an individual basis. However, selling the land during this time is not allowed. Likewise, DKT lands—which are likewise government-allotted—cannot be accepted as collateral due to similar limitations on their sale.
  • list items Private banks accept commercial properties, however the collateral buffer is significantly less from residential properties.
  • list items It is legal in Guntur to mortgage agricultural land in order to get a loan for schooling. At the moment the mortgage is created, the applicant needs to provide title deeds and a patta passbook.
  • list items Government bonds, insurance policies, and fixed deposit (FD) accounts are all accepted based on the type. For instance, the face value of government bonds is taken into account, the principal value of the FD is taken into account, surrender value is taken into account for insurance policies, and the collateral margin is significantly higher than other properties.

 

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Education Loan Interest Rate in Guntur 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% 

Check Your Education Loan Eligibility

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Education Loan Interest Rate in Guntur 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 in Features Offered by Banks and NBFCs in Guntur

Covered Expenses

In India, students usually take out education loans to pay for their books, equipment, hostel costs, test fees, and other education-related costs. Certain loans could also pay for living costs like food and lodging. To find out what expenses are covered in education loan, it's critical to thoroughly review the loan's terms and conditions. The loan's use may be subject to particular conditions or limitations set by the lender.

Moratorium Period 

The time frame during which the borrower is exempt from having to repay the loan is known as the moratorium period for an education loan. Usually, this time frame starts when the borrower graduates from college and ends when they begin receiving a steady salary.Depending on the lender and the loan terms, the precise length of the moratorium period—which is normally between six and twelve months—may change.

Loan Margin 

The portion of the total loan amount that the borrower must pay out of pocket is known as the loan margin. For instance, if the loan margin is 5%, the borrower would have to contribute 5% of the entire loan amount, with the lender picking up the remaining 95%. Lenders frequently employ loan margin to lower their risk in the event that the borrower is unable to make loan repayments. To comprehend the loan margin and any other circumstances that might apply, it is crucial to carefully study the loan's terms and conditions. 

Collateral Margin 

The percentage of the entire loan amount backed by collateral is known as the collateral margin. An asset provided as security for a loan is known as secured education loan with collateral. The lender may take possession of the collateral to recoup their losses if the borrower is unable to make loan repayments. Lenders frequently use the collateral margin to lower their risk in the event that the borrower is unable to make loan repayments. To fully comprehend the collateral margin and any other terms that might be applicable, it is crucial to carefully study the loan's terms and conditions. 

Check Your Education Loan Eligibility

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Common Reasons for Rejection of Education Loan in Guntur 

The need for evidence of income is one of the most frequent obstacles to getting an unsecured loan. This may provide challenges if the co-applicant of the student, usually the father, is self-employed and does not have the necessary paperwork to confirm his source of income, or if he has not submitted an income tax return (ITR). It is significant to remember that banks and non-banking financial institutions usually need the co-applicant, such as the mother or father, to provide at least two years of ITR. However, it might be feasible to obtain a loan without an ITR in some circumstances, especially for US students. Without this paperwork, it could be more difficult to get a loan in another country.

It's crucial to be aware that D-form patta lands are not accepted as collateral for secured loans in Guntur. Furthermore, a large number of Guntur students can own open pieces of land. If these properties have appropriate boundaries, they could be accepted as collateral. 


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