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Brinda Khurana
Brinda Khurana
Updated on:  22 Jun 2024  | Reviewed By: 
Aman 
| 162 | 10  min read

This article may be helpful to you if you live in Kolkata and intend to pursue further education either domestically or outside. Students usually need up to 15 lakhs to study in India and 45 lakhs to study overseas. Depending on the lender you select, the interest rate you pay on the school loan may vary from 8.30% to 13.5%.

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Education Loan Providers in Kolkata for Studies in India 

We will read more about Kolkata's numerous education loan providers here. We're going to learn more about the several Kolkata-based companies that offer education loans. This covers banks, both commercial and government-owned, that provide education loans to students wishing to continue their study. 

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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Education Loan Providers in Kolkata for Studies in Abroad

The table below lists the loan amount, processing fee, and name of the scheme that different banks in Kolkata offer to finance overseas higher education. 

Bank Name  Loan Amount  Processing Fee

State Bank of India 

Up to INR 1.5 cr with collateral 

INR 10,000

Axis 

Prime A - INR 50 lakh 

Prime B - INR 40 lakh 

0.75% on the sanctioned loan amount 

ICICI 

Up to INR 2 cr (secured) 

Up to INR 1 cr (unsecured) 

Up to 2% + GST 

IDFC First 

Up to INR 50 lakh without collateral 

Up to 1.5% of the sanctioned loan amount 

UBI 

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 

Up to 100,000 USD 

5% (adjusted in the loan amount) 

Prodigy 

Up to 100% cost to study 

Up to 5%, added to loan amount 

BOB 

Up to 1.5 cr with collateral 

INR 10,000 + GST 

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Documents Required for Availing an Education Loan in Kolkata 

Basic documentation for the co-applicant, guarantor, and applicant (a student)

  • list items A loan application form that has been filled out and contains the applicant's personal data and two passport-style photos is required.
  • list items Applications can provide proof of residency in the form of a passport, voter ID card, utility bill, ration card, bank statement, or Aadhaar card.
  • list items It is necessary to present two proofs of residency if the permanent and current addresses are different.
  • list items Verification of identity requires both a PAN card and a passport.
  • list items The candidate must submit a personal assets and liabilities statement in the format required by the branch professional.
  • list items Regardless of whether it is a payroll account or a personal account, the applicant must provide their most recent six-month bank statement. If a co-applicant, their credits have to be submitted as well. Should they work for themselves, they have to submit a full year's worth of business dealings.

Every document needs to be self-attested.

Academic records submitted by applicants

  • list items Verification of the program's enrollment and the duration of the course must be provided.
  • list items The course cost schedule and the i20 form (for US students) are necessary, if they are accessible.
  • list items Scorecards from standardised tests, such as the GRE, GMAT, or IELTS, must be submitted by the applicant.
  • list items It is also necessary to print out the university ranking form.
  • list items The candidate needs to send in their degree, diploma, and mark sheets from grades ten through twelve.

Financial Co-applicant Income documents

If co-applicant is salaried: 

  • list items The most recent pay stubs for the last three months must be provided by the applicant.
  • list items Form 16 for two years is necessary.
  • list items A copy of the applicant's ID card from their employer must be submitted.
  • list items It is necessary to have the Income Tax Return for the preceding two years.

If self-employed:

  • list items The last three years' income tax returns must be provided by the applicant.
  • list items If the applicant is a self-employed business owner, they need to provide the balance sheet for their Profit and Loss account for the last three years.
  • list items Documentary proof of the applicant's company or business address must be submitted.

Other Documents 

  • list items For state banks, a cheque for Rs. 11,800 must be provided as a processing charge; for private banks, one to two percent.
  • list items A letter indicating that the co-applicant would be responsible for any costs not reimbursed by the loan must be submitted by the applicant. Additionally, checks for attorney and evaluator fees can be needed if the bank oversees the legal and value procedure.
  • list items On stamp paper worth Rs. 100, the owner of the collateral property must provide an affidavit. If there are several owners, an affidavit from each of them is required.

Additional Documents 

  • list items Statements of any outstanding loans from the prior year must be provided by the applicant.
  • list items Any payments made in advance must be accompanied by receipts.
  • list items A proforma invoice must be submitted for the trip, laptop, or any other item that requires a loan.
  • list items A letter stating that the co-applicant's income tax return is unavailable is needed.

If there are any gaps in their profile, the candidate must explain them in writing.

 

Check Your Education Loan Eligibility

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Collateral Documents Required for a Secured Education Loan in Kolkata 

You must submit collateral documentation for the property you are pledging if you choose to apply for a secured education loan in Kolkata. The aforementioned records are required:

  • list items The pledged property's title deed
  • list items A gift deed, selling contract, or recorded will
  • list items The original registration receipt for the previously mentioned agreement
  • list items A letter of allocation from the regional administration or another authorised government body
  • list items A title document (EC) or a 30-year chain of sale deeds that certifies the property's ownership. If the property has been owned for longer than thirty years, the previous sales documentation is acceptable.
  • list items Power bills and current property taxes are from the same address.
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Acceptable Collaterals in Kolkata for Education Loans 

  • list items You must provide the required papers if you intend to use a residential home or flat as collateral. Collateral can also include government bonds, fixed deposits, insurance policies, and non-agricultural land. Gramme Panchayat properties might also be acknowledged in some circumstances.
  • list items You must submit the mutation deed along with all other necessary collateral documents in order to be approved for a student loan with real estate in Kolkata. In addition, government banks could ask for a structural examination report if the property is older. The remaining supporting documentation is typical.
  • list items It is important to remember that each state has different requirements for collateral documentation. You can get a detailed list of the documentation needed for student loans with collateralized loans from your financial advisor.
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Education Loan Interest Rate in Kolkata for Studies in India 

We will examine the various interest rates that Kolkata's education loan companies are willing to offer. Because interest rates impact the amount of interest a borrower must pay on a loan, they are a crucial consideration when selecting an education loan provider. 

Banks in Kolkata are offering credit rates as low as 8.30% for higher education 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 Kolkata for Studies in Abroad

Banks based in Kolkata provide interest rates as low as 10% for students planning to pursue higher education overseas. 

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 Features Offered by Banks and NBFCs in Kolkata 

Expenses Covered 

To cover the costs of their varied academic requirements, students who plan to study abroad or continue their studies in India may apply for an education loan. The following expenses are covered by the education loans that lenders in Kolkata give.

  • 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 

Depending on the lender granting your loan, the moratorium term in the majority of public, private, and non-banking financial companies (NBFCs) in Kolkata is for the duration of the course plus an additional six to one year. Every bank has different loan repayment terms. Simple interest is not due during the moratorium period for an education loan at public banks. Compound interest is assessed during the moratorium period in private banks and NBFCs. Partial interest payment during the moratorium period is another option offered by the majority of NBFCs. 

Loan Margin 

The amount that must be paid by the applicant or student in order to obtain an education loan is known as the loan margin. In general, the loan margin in private banks ranges from 5% to 10%, while it is often around 10% in public banks.

For instance, if a bank charges a 10% loan margin and the student wants to borrow 50 lakhs, they will need to come up with an additional 5 lakhs before the loan can be approved.

Collateral Margin 

When a loan is secured education loan with collateral, collateral margin is determined. The amount determined using the collateral offered as security is known as the collateral margin. The bank uses the collateral or property given for the secured loan to recover the amount in circumstances where the student is unable to repay the loan. 

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Common Reasons for Education Loan Rejection in Kolkata 

Students in Kolkata who approach banks or lenders directly for an education loan may be turned down for a number of reasons, some of which are listed below:

  • list items Poor CIBIL scores: A score of 685 or more is generally regarded as satisfactory. However, different banks have varied minimum requirements for CIBIL scores. SBI will take scores as low as 591, though. The loan application can be rejected if the co-applicant's score is insufficient to meet the bank's standards.
  • list items Poor academic achievement in the past can have a detrimental effect on a borrower's prospects of getting a loan approved since banks may interpret it as a sign of the borrower's capacity to finish their school.
  • list items Selected nation and degree programme: Banks have a tendency to give preference to students majoring in STEM subjects over those pursuing other courses, and they might reject applicants from third-world nations for higher education.

Inadequate records: The loan process cannot start without the proper paperwork and income verification; otherwise, the application may be denied. It is crucial to learn about the lending institution's regulations about the suitable study abroad programmes and loan approval standards.