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Brinda Khurana
Brinda Khurana
Updated on:  22 Jun 2024  | Reviewed By: 
Aman 
| 172 | 10  min read

In Gujarat's vibrant metropolis of Surat, education is the key to a bright future.

This post will discuss the best school loan provider, the application procedure, the repayment schedule, and the interest rate of student loans. Let's explore all of the Surat education loan options and see how they can provide students with countless alternatives.

Surat students typically require about INR 15 lakhs to cover their tuition costs while studying in India. But the necessary sum rises to about INR 45 lakhs if they decide to continue their education overseas. The interest rates on education loans in Surat vary based on the loan type and the chosen lending institution, from 8.5% to 13%.

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Education Loan Providers in Surat 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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Education Loan Providers in Surat 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 Surat 

Application Form

You must fill out an application in order to start the WeMakeScholars school loan application procedure. You will need to sign this form and give two recent photos in addition to your personal information.

Documents Needed for the Applicant and Co-Applicant

Verification of Identity

  • list items To prove your identification, you'll need to present paperwork like a current passport, PAN card, and Aadhar card.
  • list items You will need to present two address proofs if your permanent and current addresses differ. Voter ID cards, Aadhar cards, phone bills, power bills, bank account statements, and ration cards are among the accepted documents.

Documentation for the Co-Applicant

  • list items In the event that your co-applicant is a parent or guardian, you will need to provide their business transactions record for the previous year if they are self-employed, or their bank account statement for the last six months if they are salaried.
  • list items Statement of Personal Assets and Liabilities
  • list items A personal asset and liability declaration that details your financial situation, including your assets and any ongoing liabilities, must also be attached.

Academic Records of the Candidate

It is necessary that you turn in the following academic records:

  • list items Mark sheets and certificates of education for grades ten, twelve, and degree programmes.
  • list items Documentation for admissions that matches the length of the course you want to take.
  • list items Evidence of the fee schedule, including, if available, an I-20 form for study in the United States.
  • list items Test results, such as those from the GMAT, GRE, or IELTS, based on the school's requirements.
  • list items Details about the chosen college or university's rankings.

Income Documents for Financial Co-applicants

If you are applying with a financial co-applicant, you may need to provide the following income-related documents:

Regarding the Salaried Co-applicant

  • list items Three salary stubs.
  • list items Form 16 for the previous 24 months.
  • list items A legitimate ID card issued by their company.
  • list items Last two years' income tax returns (ITR).

For Self-Employed Co-applicant

  • list items For the previous three years' income tax returns (ITR).
  • list items The last three years' balance sheets or profit and loss accounts.
  • list items Proof of business address.

Additional Records

  • list items A declaration in writing from the co-applicant that they will pay any further costs. The necessary format for this letter will be supplied by the financial officer.
  • list items A notarized joint affidavit that is signed by the student and the co-applicant and is in the bank's normal format.

Supplementary Records (if relevant)

  • list items Copies of all invoices paid to the university.
  • list items A loan account statement listing all outstanding loans.
  • list items A letter of explanation, on stamp paper costing Rs. 100, outlining any educational deficiencies that require filling in.
  • list items Please be aware that the precise documentation requirements could change based on the loan programme and the lender. Speaking with the relevant financial institution is crucial if you want the most recent and correct information on the necessary paperwork.
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Education Loan Interest Rate in Surat 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 Surat 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 Features Offered by Banks and NBFCs in Surat 

Expenses Covered

  • list items In addition to tuition, education loans can be used to pay for a range of additional costs, including study materials, textbooks, and housing costs.
  • list items Certain lenders offer a comprehensive financial solution by extending their coverage to cover living expenditures such as housing and food.

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 

  • list items Surat has a long moratorium period on education debts.
  • list items Borrowers are not obliged to make any loan repayments during this time.
  • list items Usually, the moratorium period for an education loan lasts six to twelve months following the course's conclusion.
  • list items It enables borrowers to successfully organise their loan repayment strategy and launch their professions.

Loan Margin 

  • list items The proportion of the total loan amount that the borrower must personally contribute is known as the loan margin.
  • list items For instance, if the loan margin is 5%, the lender will cover the remaining 95% of the loan amount, with the borrower contributing the remaining 5%.
  • list items Lenders can reduce their risk in the event of non-repayment by using the loan margin.

Collateral Margin 

  • list items  A secured education loan with collateral may be required as a security precaution for certain Surat education loans.
  • list items The percentage of the loan amount secured by the borrower's assets is indicated by the collateral margin.
  • list items Lenders receive comfort from it and are exposed to less risk. This guarantees the preservation of the goals of the borrowers as well as the interests of the lenders.

 

Check Your Education Loan Eligibility

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Common Grounds for Education Loan Rejection in Surat 

Problems Associated with Low Credit Score

A low credit score may cause lenders to hesitate. Usually, banks favor applicants with a CIBIL score of 685 or above. They also take into account the borrower's credit history, scanning it for any significant problems like delinquent loans or returned checks. It is advised to focus on developing a solid credit profile or think about having a co-applicant with a solid credit history in order to get beyond this obstacle.

Having Trouble Providing Security or a Guarantor

A qualified guarantor or collateral are frequently needed for secured school loans. Loan rejection may result from failing to provide acceptable collateral or a guarantor who satisfies the lender's standards.

Problems with Inaccurate or Partial Documentation

Your loan application may be rejected if you provide incomplete or erroneous supporting documentation. To prevent such problems, it is essential to make sure that all necessary documents are submitted precisely and in the appropriate format.

Non-adherence to the institution's or course's approved requirements

Certain lenders have particular requirements, such as a list of authorised schools and courses, before they will grant education loans. It is crucial to confirm that the course or school you have selected meets the requirements of the lender and is on their approved list in order to avoid rejection.

In Surat 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.