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Brinda Khurana
Brinda Khurana
Updated on:  24 Jun 2024  | Reviewed By: 
Aman 
| 167 | 9  min read

This article can be a useful tool for Indore, Madhya Pradesh students who wish to further their education, either domestically or overseas. It offers vital information to assist you in making defensible choices about continuing your education.

The approximate financial requirement for students studying in India is approximately 15 lakhs, however students who choose to pursue their education abroad may require up to 45 lakhs. Remember that these are approximations and may differ based on the course and school you select. 

It's important to take into account the interest rates that various lending organisations offer when it comes to financing your education. The range of these rates is 8.30% to 13.5%. To choose the best financing option, it is crucial to investigate your options and compare rates. 

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Best Bank for Education Loan in Indore for Studies in India 

These banks have made a name for themselves in Indore as reliable establishments that offer the most resources to students hoping to fulfill their academic goals. This is a list of banks that includes information about the loan programmes they offer, the amounts they lend, and the processing fees related to them.

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 Bank for Education Loan in Indore 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 Indore 

Applicants Documents 

  • list items An official letter from the university confirming the student's acceptance into their preferred course is called a confirmation letter.
  • list items Academic Credentials: These comprise diplomas, transcripts, and other records from the student's time in school that attest to their level of education.
  • list items Fee Schedule: This is a thorough schedule of all the costs associated with the course, including tuition, examination fees, and housing costs. It aids in the student's comprehension of their financial commitments.
  • list items Age Verification: To confirm the student's age, legitimate identity documents like a birth certificate, passport, or Aadhaar card are needed.
  • list items Identity authentication: To verify the student's identity and personal information, documents such as an Aadhaar card, PAN card, passport, or driver's licence are required.
  • list items Test Results: To demonstrate a student's performance, official results from recognised tests such as the GRE, GMAT, TOEFL, or IELTS are needed.
  • list items Proof of Residence: In order to determine the student's place of residence, documentation such as an Aadhaar card, voter ID, utility bills, or a rental agreement are required.
  • list items Passport-sized Pictures: Current student pictures that adhere to the format and size specifications.

Co-applicants Documents 

  • list items Identity Verification: To verify the identity of the co-applicant(s) (parent/guardian), valid identification documents such as a driver's license, Aadhaar card, PAN card, or passport are needed.
  • list items Address Verification: You must obtain documentation from the co-applicant attesting to their residential address. Examples of these documents are an Aadhaar card, a voter ID, utility bills, or a rental agreement.
  • list items Income Evidence: Records demonstrating the co-applicant(s)' ability to pay their bills, such as pay stubs from the previous three months, income tax returns from the previous two years, bank statements from the previous six months, or other pertinent financial data.
  • list items Relationship Authentication: In order to prove the co-applicant's familial link with the student, supporting documentation such as birth certificates or court records are required.
  • list items Passport-sized Images: Current images of the co-applicant(s) that adhere to the format and size specifications.

Other Documents 

  • list items Loan Application Form
  • list items Gap Certificate: This document clarifies the student's educational journey by explaining any gaps (if any) between their present course and their previous degree.
  • list items Supplementary Supporting Documents: To strengthen the loan application, the WeMakeScholars team may request additional documents. These documents may include guarantor documents, academic references, or requirements unique to the course.
  • list items Invoices: Official receipts and invoices for travel, computer, stationery, and other necessary item costs that give a thorough accounting of all the money spent on the student's education.

 

Check Your Education Loan Eligibility

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Documents Required for a Secured Education Loan in Indore 

  • list items Evidence of Proper Ownership: This formal document certifies that the borrower is the rightful owner of the assets being pledged as security. It consists of crucial documents that prove the borrower has legal ownership of the property, such as the possession certificate, sale deed, and property registration paperwork.
  • list items Encumbrance Certificate: This document, which is provided by the appropriate authority, attests to the fact that the collateral property is unencumbered by any debts, either accrual or otherwise. It guarantees that there are no unresolved claims or liabilities and that the property is secure.
  • list items Title Deed: A legal document attesting to the borrower's legitimate claim to the collateral property is the title deed. It demonstrates their legal authority over the priceless object and reaffirms their ownership rights.
  • list items Property Valuation Report: A qualified valuer evaluates the collateral property's current market value and compiles this report. It contributes to the determination of the property's monetary value by offering an objective assessment of its value.
  • list items Certificate of No Objection (NOC) from Housing Society or Association: The housing society or association in which the collateral property is situated is the one that issues this certificate. It shows that they are okay with the property being used as loan security. A cooperative agreement between the borrower and the society or association is demonstrated by obtaining this certificate.
  • list items Documents attesting to the borrower's ownership of the land where the collateral property is located are called land records. They contain crucial records attesting to the borrower's legitimate jurisdiction over the land, such as authorised revenue records, survey maps, and land registration records.
  • list items Possession Certificate: This is a verified record that the relevant authorities have issued. It attests to the borrower's ownership of the collateral and establishes their custody rights over it. It demonstrates the borrower's physical possession of the asset.
  • list items Allotment Letter (Particular to Indore): This is an official allotment letter for Indore, issued by an Indore-specific government agency like the Indore Development Authority (IDA). It certifies that, in compliance with local regulations, the borrower has been allotted a certain area inside the city. 
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Education Loan Interest Rate in Indore 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 Indore 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 Education Loan Features Offered by Banks and NBFCs in Indore

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's critical to read the loan agreement carefully and understand the costs it covers.

Moratorium Period 

A "moratorium period" 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 by an asset used as 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.


In Indore 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.