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Education Loan in Pune

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Brinda Khurana
Brinda Khurana
Updated on:  24 Jun 2024  | Reviewed By: 
Aman 
| 211 | 10  min read

Pune residents can apply for education loans from public, commercial, and NBFC banks totaling up to 1.5 Cr, with interest rates starting at 8.30%, to study anywhere in India and abroad.

One of the most developed cities in India is Pune, from which aspirational students travel to study outside in the United States, the United Kingdom, Canada, Australia, and many other nations in order to launch prosperous careers.

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Leading Banks for Education Loan in Pune 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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Leading Banks for Education Loan in Pune 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 Availing an Education Loan in Pune 

In order to process and validate a student's loan profile, the banks require certain information accompanied by documentation and verification. Students in Pune who wish to apply for an education loan must provide the following paperwork:

Section 1: Application Form accompanied by Two Photos

Two passport-sized photos and a fully completed education loan application form are mandatory. It is also appropriate to submit a hard copy of the online form.

Section 2: Basic information about the applicant, co-applicant, and/or guarantor

  1. list items 1. Identity verification
  • list items Aadhar card PAN card
  • list items Passport of the student
  • list items Passport of the student
  1. list items 2. Address Proof (the student must submit two separate residency proof documents if their current and permanent addresses are the same).
  • list items Ration card
  • list items Phone bill 
  • list items Electricity bill 
  • list items Voter ID card 
  • list items Aadhaar card
  • list items Bank passbook statement
  1. list items 3. The co-applicant's documents
  • list items The co-applicant must submit their bank statement for the previous six months if they are salaried.
  • list items If the co-applicant works for themselves, they must provide proof of their previous year's worth of business transactions.
  1. list items 4. The assets and liabilities statement that the bank staff have approved

Section 3: The applicant's academic records

  • list items Evidence of a student's enrollment in a course or university that qualifies
  • list items The written total course cost and the due dates for payments
  • list items Proof of passing the relevant exam, such as the GMAT, GRE, or IELTS
  • list items Academic transcripts for classes 10, 12, and Bachelor's 

Section 4: Financial co-applicants' income verification papers

If Salaried 

  • list items Pay stubs over the previous three months
  • list items Previous two years' ITRs 
  • list items Previous two years' Form 16 
  • list items Office ID card details

If the applicant is self-employed

  • list items Income Tax Returns for the Past 3 Years
  • list items The three-year balance sheet with profit and loss statements.
  • list items Verification of the company's address

Section 5: Additional Records

  • list items A statement from the loan's co-borrower stating that they would pay for any additional costs not covered by the education loan
  • list items Additionally, the co-applicant and student must provide a joint affidavit in the format required by the bank.

Section 6: Supplementary documents (if relevant)

  • list items Payment receipts will be necessary if any payments are made in the university's name.
  • list items Last year's pending loan statement
  • list items Students' certificate of academic gap, printed on 100 rupee stamp paper, explaining the cause for the gap

 

Check Your Education Loan Eligibility

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Education Loan Interest Rate in Pune 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 Pune 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 Pune

Expenses Covered

The following expenditures are paid by students in Pune who obtain an education loan from banks or non-bank financial institutions:

  • list items Course Payments
  • list items Fees for lodging and hostels
  • list items The price of stationery and books
  • list items Expense of travel (including airfare, if the student is traveling overseas)
  • list items Expenses for food and mess
  • list items The expense of the project, the uniform, and the thesis work
  • list items Cost of buying a computer

If the student provides adequate documentation of their expenses, the education loan will also pay all additional study-related costs incurred during their time in India or overseas.

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 

The moratorium period for an education loan is a set period of time during which the borrower is not obligated to make any loan payments. The length of the course plus an additional six months or a year, depending on the bank and kind of school loan, is often the moratorium period.

Loan Margin

Every bank has a loan margin, so applicants who apply for an education loan do not receive the full amount requested. Loan margin is a percentage-based fraction of the total loan amount that the borrower must arrange and provide to the bank in order to get the remaining funds as an education loan from the banks.

By maintaining a lending margin, banks often assess the borrower's ability to make payments.

  • list items A 5% loan buffer is typically required in order to study in India.
  • list items A 15% loan margin is required in order to study overseas.

The size of the loan margin is determined by the type of education loan as well as the location where you intend to study.

Collateral Margin

Immovable properties and movable or liquid securities pledged in the bank are the two primary forms of secured education loan with collateral that students can use to secure loans from banks to study in India or overseas.

The proportion of the value of the pledged collateral that a loan can be extended to the applicant is known as the collateral margin. Banks assign varying percentages for each sort of collateral on which they offer education loans, depending on the type of collateral. 

Depending on the type of liquid collateral, public banks such as the State Bank of India offer education loans up to 100% of the value of the immovable property used as collateral. Other banks, however, only offer education loans up to 100% of the liquid security.

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Permissible Collaterals in Pune for an Education Loan 

  • list items FD, policy of insurance, and government bonds
  • list items A home or flat in a residential area with all the necessary paperwork
  • list items Commercial real estate
  • list items Land used for agriculture

Along with the standard collateral paperwork, students must provide the bank with the requisite immovable collateral documents listed below:

  • list items Payment receipts for the builder or vendor
  • list items If the property is really ancient, a structural analysis report will also be necessary.
  • list items If the property is intended for resale, a share certificate will be necessary.
  • list items A NOC in the specified format from society administration or the builder
  • list items Confirmation of the power of attorney from the builder
  • list items The conveyance deed of property
  • list items If the property is new, you'll need to get a Commencement Certificate (CC).

These documents are needed in order to apply for a collateralized education loan in Pune. State-by-state variations exist in the documentation requirements, nevertheless. Speak with your finance officer for the most up-to-date list of necessary paperwork. Consult your financial officer, who will provide you with a thorough checklist of documents. 

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Common Grounds for an Education Loan Rejection in Pune 

Banks must adhere to extremely tight guidelines and procedures in order to grant student loans; even the slightest error in a single document could result in your loan being denied. The following are some common reasons Pune student loans are denied:

  • list items The assets of the pagdi system are not transferable.
  • list items Pledges of real estate given by the government to slum dwellers as rehabilitation assets are not allowed.
  • list items If the MHADA land is less than ten years old, it is unsuitable.
  • list items Pune's government banks would not accept apartments or houses as collateral without occupancy certificates.
  • list items For CIDCO properties in Pune, an official letter from the lender to the CIDCO authorities, a letter from CIDCO, two affidavits, and a letter in favor of CIDCO are required. The creation of associations is not authorized. If the transfer deed is available and present, CIDCO NOC is required; otherwise, Builder NOC is needed.

If your loan application is denied, it should contain any of the previously specified requirements. 

In Pune 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.

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Frequently Asked Questions 

What is the maximum loan amount I can get for education in Pune?

In Pune, you can apply for education loans up to INR 1.5 crore with interest rates starting at 8.30% for studying in India or abroad. The exact amount depends on the bank or NBFC and the specifics of your education program.

Are there any processing fees for education loans in Pune?

Yes, processing fees vary across different banks and NBFCs. It ranges from nil to up to 2% of the loan amount plus GST. Some banks might have a fixed processing fee for larger loan amounts.

What are the interest rates for education loans in Pune?

Interest rates for education loans in Pune start from as low as 8.30% and can go up to 13.5%, depending on the bank, whether the loan is secured or unsecured, and other factors such as the borrower's creditworthiness and the study destination.

What documents are required to apply for an education loan in Pune?

Required documents typically include proof of admission, academic records, KYC documents of the student and co-applicant, financial documents, and collateral documents (if the loan is secured). Specific requirements may vary by lender.

Can I get an education loan in Pune without collateral?

Yes, several banks and financial institutions offer unsecured education loans up to a certain limit. However, for higher amounts or for certain destinations, collateral might be required.