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Education Loan in Jaipur

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Brinda Khurana
Brinda Khurana
Updated on:  24 Jun 2024  | Reviewed By: 
Aman 
| 181 | 10  min read

This article can be helpful to you if you live in Jaipur and are thinking about pursuing your education in India or another nation. Studying overseas can cost up to 45 lakhs, whereas studying in India can often cost up to 15 lakhs. Depending on the lender you select, student loans might have interest rates ranging from 8.30% to 13.5%. 

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Best Banks for Education Loan in Jaipur 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 Jaipur for Studies in Abroad

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 Availing an Education Loan in Jaipur 

The following list contains the documentation or document checklist needed to obtain an education loan in Jaipur.

Basic documents for applicant, co-applicant and guarantor 

  • list items A filled-out application that includes two passport-size photos and their biographical data.
  • list items Documentation of residency, like
  • list items ID card (passport), phone bill, electricity bill, ration card, bank account statement, and Aadhar card.
  • list items Two distinct proofs are required if the applicant's permanent and current addresses differ.
  • list items Identification evidence, such as
  • list items Passport and PAN card.
  • list items A listing of liabilities and personal assets prepared in the manner specified by a banking expert.
  • list items The most current salary- and personal-related six-month bank statement.
  • list items A co-applicant must submit their credit report, and if they work for themselves, they must also give proof of their last year's worth of business transactions.
  • list items The files need to be authenticated by themselves.

Academic documents of applicant 

  • list items The applicant must submit documentation attesting to their acceptance into the programme, which should indicate the length of the course.
  • list items If the course is held in the US, they should additionally supply an I-20 form, if one is available.
  • list items A standardised exam scorecard, such the GMAT, IELTS, or GRE 
  • list items Printout of the University Ranking form
  • list items Grade reports and diplomas for 10th, 12th, and degree programmes 

Financial co-applicant income documents
 

If salaried:

  • list items The employee's ID card 
  • list items From the previous two years' income tax returns (ITR) 
  • list items The most recent pay stubs for the last three months 
  • list items Form 16 from the previous two years

If the individual is self-employed:

  • list items Income tax returns for the last three years (ITR)
  • list items They must submit a three-year profit and loss account Balance sheet
  • list items Proof of their business address or company address to verify their vocation.

Other documents 

  • list items A cheque for the processing cost of INR 11,800.
  • list items A letter informing the co-applicant that any expenses not paid for by the loan will be their responsibility.
  • list items The applicant will need to submit checks for the fees of the evaluator and attorney if the bank is conducting the legal and valuation process.
  • list items A statement signed by the collateral property owner, on paper stamped with the amount of INR 100. (If the property is owned by more than one person, an affidavit must be provided by each).

Additional documents 

  • list items Loan statements that are still outstanding from the prior year.
  • list items Receipt for any upfront payments.
  • list items A proforma invoice should be sent for the trip, laptop, or other item for which you are asking for a loan.
  • list items A letter indicating the absence of co-applicants, if applicable ITR
  • list items A letter outlining any gaps in your resume 

 

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Collateral Documents Required for a Secured Education Loan in Jaipur

You must provide collateral paperwork for the property you are using as collateral when you apply for a secured loan. The following is a list of the particular collateral documents needed for a Jaipur education loan.

  • list items Title deed to the pledged property
  • list items A recorded gift deed, a selling agreement, or a will.
  • list items The original receipt for the agreement stated above that was registered.
  • list items The allocation document from the necessary authorised government agency, like the Jaipur Municipal Corporation, or the municipal corporation
  • list items It is necessary to have a 30-year-old document, an EC, or a previous chain of sale deed establishing title. It is a thirty-year record of who bought the property from whom thirty years prior. The documentation from the previous sale will work if you have owned the property for longer than 30 years.
  • list items The same address is now used for both power and property tax invoices.
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Permissible Collateral for Education Loans in Jaipur 

Certain requirements and limitations apply regarding the kinds of collateral that might be accepted in order to receive a secured education loan. In general, Jaipur secured education loans accept the following assets as collateral:

  • list items A boundary-defined home, flat or non-agricultural plot of land
  • list items Properties that are utilised for business
  • list items Land used for agriculture
  • list items Financial assets include government bonds, insurance contracts, and fixed deposits.
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Education Loan Interest Rate in Jaipur 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 Rate in Jaipur 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)

Calculate your Education Loan EMI

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Other Education Loan Features Offered by Banks and NBFCs in Jaipur 

Expenses Covered 

An education loan is a type of financial aid that assists students in meeting the expenses of continuing their education, whether it be overseas or in India. A variety of costs can be covered by the education loans provided by Jaipur lenders, including but not limited to

  • list items Fees for colleges
  • list items The price of lodging
  • list items Exam fees
  • list items Fees for libraries
  • list items Fees for laboratories
  • list items Cost of Books Flight (For study abroad)
  • list items The applicant's insurance premium (for study abroad)

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 

Numerous public and commercial banks in Jaipur, along with non-banking financial firms (NBFCs), provide education loans, with varying moratorium durations contingent upon the lender. The moratorium period for an education loan normally lasts for the whole length of the course plus an extra six to twelve months. However, different financial organisations may have varied loan payback terms and conditions. 

Loan Margin 

The proportion of the entire loan amount that the borrower must pay up front before the loan is disbursed is known as loan margin, often referred to as margin requirement. The lender requires this in order to make sure the borrower has some ownership in the loan. various financial organisations and loan packages may charge various margins for education loans. Private banks often charge a margin of 5% to 10% on loans, whereas public banks typically charge a margin of approximately 10%.

For example, before the loan can be approved and issued, the student must deposit 5 lakhs as a margin amount if the loan amount is 50 lakhs and the bank charges a 10% loan margin. This implies that in order to qualify as collateral for a bank loan, the student would need to have INR 5,00,000 in cash or other liquid assets.

Collateral Margin

When a loan is secured with collateral, the lender may need collateral margin, which is a percentage of the collateral's value. The value of the collateral offered as security is used to compute the collateral margin.

For instance, if a bank demands a 20% collateral margin and the pledged collateral has a value of Rs. 50 lakh, the bank would grant a Rs. 40 lakh loan. The property or collateral provided for the secured loan may be used by the bank to recover the amount in the event that the borrower is unable to repay it. Because of this, it's critical that the borrower offer highly valuable or liquid collateral to guarantee they receive the largest possible loan amount.

 

Check Your Education Loan Eligibility

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Common Grounds for Education Loan Rejection in Jaipur 

Students may encounter rejection when attempting to apply for an education loan through direct communication with banks or lenders. There are a number of particular reasons why Jaipur students could not be granted an education loan.

  • list items Low CIBIL scores: If the financial co-applicant's CIBIL score is below the bank's threshold, loan applications may be rejected. A minimum CIBIL score of 685 is often required by banks, while SBI may accept scores as low as 591.
  • list items Low academic standing: The applicant's prospects of getting the loan may be severely impacted if they have a history of low academic standing.
  • list items Country of choice for further education: In underdeveloped nations, bank loans for further education are typically denied.
  • list items Higher education course of choice: Because STEM graduates have better employment prospects than graduates in other professions, banks typically favour STEM courses over other academic specialisations.
  • list items Inadequate paperwork: Banks are unable to start the process of authorising an education loan for overseas study without the required paperwork. For this reason, in order to be eligible for an international education loan, you must present the required paperwork and evidence of your income.


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