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Education Loan in Vijayawada

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Brinda Khurana
Brinda Khurana
Updated on:  14 Jun 2024  | Reviewed By: 
Aman 
| 134 | 11  min read

There are several ways to get loans in Vijayawada to fund your ambitions for further education. A range of institutions, including commercial banks, government banks, and non-banking financial firms (NBFCs), are offering these loans. All of these universities, whether you want to study overseas or in India, have different financing options to suit your needs. When they make decisions about your student loan, they make sure you get the right amount of money depending on your unique educational loan requirements and other eligibility requirements. 

An important thing to think about when taking out one of these loans is the interest rate, which determines how much you have to pay back overall and usually ranges from 8.5% to 13%. Your chosen study destination country and the academic programme you are enrolled in will affect this interest rate. 

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Best Banks to Provide Education Loan in Vijayawada 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 to Provide Education Loan in Vijayawada 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 Vijayawada 

Applicants Documents 

  • list items Official institution Acceptance: The official transcript attesting to your enrollment in the course of your choice from the institution.
  • list items Academic History Records: These records include transcripts, certificates, and other pertinent documentation that demonstrate your development and accomplishments. They offer a summary of your educational path.

Financial Documentation 

  • list items Detailed Fee analysis: A thorough analysis of all the costs associated with your education, including tuition, fees for exams, housing, and other pertinent charges while you are a student.

Age and Identity Verification

  • list items Age confirmation is the process of confirming that you are of the appropriate age to enroll in the course of your choice. Usually, this entails turning in official paperwork, like a passport or birth certificate with your date of birth on it.
  • list items Identity Verification: You must establish your identity for security and administrative reasons. Identification documents that are recognised, such as a driver's license, passport, PAN card, or Aadhaar card, are needed for this.
  • list items Images from passports: Tiny pictures that adhere to certain specifications and are used for identity, like official documents or university ID cards.
  • list items Proficiency Test Results: To assess your skills, universities frequently need to see your results from standardised tests. For instance, test results from the IELTS or TOEFL may be required if you're applying to an overseas programme and English isn't your first language. Exams like the GRE and GMAT evaluate your preparedness for advanced coursework in a similar way.
  • list items Verification of Residence: In order to communicate, your current address is essential. For efficient communication, documents confirming your address, such as utility bills, rental agreements, voter IDs, or Aadhaar cards, are required.

Co-applicant Documents 

Identity Confirmation

  • list items ID of co-applicant: If a co-applicant endorses your application, their identification needs to be confirmed as well. Passports and other official ID documents, like Aadhaar cards and PAN cards, are needed.
  • list items Address Validation: For proper correspondence, the co-applicant's address needs to be verified in a manner similar to your own.
  • list items Co-applicant images: To ensure proper linkage with the application, recent images of co-applicants are required for identification.

Financial Validation 

  • list items Income Proof: Documents like pay stubs, income tax returns, or bank statements are required to prove the co-applicant's financial capacity. These show potential for contribution and financial stability.
  • list items Relationship Confirmation: Documents confirming the relationship, such as birth certificates or legal affidavits, are required if the co-applicant is a family member.
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Documents Required for a Secured Education Loan in Vijayawada

Property Authentication 

  • list items Ownership Proof: To guarantee that a piece of property is eligible to be used as collateral for a loan, legal ownership documentation is required.
  • list items Examining for Obstructions: Its unambiguous status is guaranteed by a certificate attesting to the fact that the property is free of any monetary or legal problems.
  • list items Title Deed: An essential legal document that certifies ownership rights and acts as an official ownership record.

Property Valuation

  • list items Valuation Report: This helps the lender determine the loan value by evaluating the collateral property's market value.
  • list items Society/Association Consent: In the event that the property is owned by a housing society, the society's consent must be obtained as collateral.
  • list items Land Ownership Confirmation: The validity of the collateral is established by documents attesting to the rightful owner of the land.
  • list items A certificate of possession certifies that you are the rightful owner and in charge of the property.
  • list items Vijayawada Property Letter: The location and status of Vijayawada property are verified by an official allocation letter, such as one issued by the Amaravati Metropolitan Region Development Authority (AMRDA).

 

Check Your Education Loan Eligibility

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Permissible Collaterals for an Education Loan in Vijayawada

  • list items Your Place of Residence: You may be able to use your home, if you own one, as collateral to obtain an education loan. Make sure the property is free of any liens and that you have accurate ownership documentation. This makes applying for a loan easier.
  • list items Business Premises: You can use your store or office space as collateral in the same way that you would a house. It's important to prove your ownership and follow all applicable laws.
  • list items Fixed Deposits: You can use the money in a bank's fixed deposit account as collateral for a loan. Depending on how much you've deposited—or, if both of you agree—the bank might lend you the full amount. This increases your range of financial options.
  • list items Insurance Policies: Should you possess insurance policies, the money that is available from them may be used as security for a student loan. Usually, a percentage of the policy's value is used by the lender to calculate the loan amount.
  • list items Government Bonds: You may use specific government certificates, such National Savings Bonds, as security for an education loan. Making use of these connections can help you feel more confident as you work towards your learning goals.
  • list items Land or Agricultural Property: If you possess land or agricultural property and it meets the lender's requirements and has no outstanding legal difficulties, you can also use it as collateral for an education loan. These choices provide you more ways to make sure you have the money you need for your education.

Calculate your Education Loan EMI

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Education Loan Interest Rate in Vijayawada 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 Vijayawada 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 Vijayawada 

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 Vijayawada 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 Vijayawada 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 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 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. 

Check Your Education Loan Eligibility

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Education Loan’s Eligibility Criteria in Vijayawada 

  • list items Age Requirement: In order to qualify for an education loan in Vijayawada, you must be between the ages of 18 and 35. If you fall into this particular age range, you are eligible to apply for an education loan.
  • list items Educational Requirements: It's important to highlight a solid academic background when applying for an education loan. In order to do this, you must fulfill the minimal educational standards established by the college or programme you want to apply to. If you fit these requirements, you can apply for an education loan.
  • list items Verification of Enrollment: Verifying your admittance to a reputable university is a crucial first step in having your loan approved.
  • list items Nationality and Residency: Only Indian citizens or those with legal documentation proving they are residents of India are eligible for education loans in Vijayawada. This requirement makes sure that loans are only given to people who are eligible and have the right paperwork to continue their education domestically or overseas.
  • list items The co-applicant's or applicants' financial history: Your co-applicant, who may be your parent, sibling, or legal guardian, has an important financial history. Their financial dependability is highlighted by a high credit score, which benefits your loan application's outcome.
  • list items Approved Universities and Courses: It's critical to select educational institutions and courses that have received official accreditation and recognition. This guarantee guarantees a high-quality education by making sure the instruction you get complies with set criteria.
  • list items Submission of Necessary Documentation: Completing the necessary paperwork is important, just like with any loan application. You will receive an extensive list of required documents. This makes it easier for you to apply for an education loan and helps you fulfill the lender's requirements.

In Vijayawada 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.