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Education Loan in Visakhapatnam

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Brinda Khurana
Brinda Khurana
Updated on:  24 Jun 2024  | Reviewed By: 
Aman 
| 156 | 9  min read

We'll walk you over the key components of the Visakhapatnam education loans that are offered in this post. This article discusses qualifying requirements, loan providers, and required paperwork. Our main goal is to give you the information and guidance you need to make wise choices, whether your educational goals take you domestically or overseas. 

The loan application process considers a number of variables and provides borrowers with access to substantial loan sums of up to $2 Cr. Interest rates for education loans in Visakhapatnam vary from 8.5% to 13%, contingent on the course selected, the country of education destination, and co-applicant analysis.

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Banks for Education Loan in Visakhapatnam 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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Banks for Education Loan in Visakhapatnam 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 Visakhapatnam 

Student Records

Enrollment Verification

The university issues an official acceptance letter attesting to the student's successful enrollment in the programme of study of their choice.

Academic Accomplishments

Lenders require legitimate academic transcripts, certificates, and school leaving documents that demonstrate the student's exceptional academic performance and qualifications in order to validate their educational accomplishments.

Fee Breakdown

To provide complete transparency to the student and their co-applicants, a detailed breakdown of the course fees is necessary, including information on tuition, test fees, hostel fees, and any other associated charges.

Age Validation

The student's age must be verified by legitimate identification documents, such as birth certificates, passports, or Aadhaar cards, in accordance with legal requirements and to guarantee eligibility for financial aid.

Verification of Identity

An essential stage in the application process is identity verification. Lenders therefore take great care to confirm the student's identity through the use of formal identification documents, such as driver's licenses, passports, Aadhaar cards, and PAN cards.

Test Results

Exam results from reputable tests (such the IELTS, TOEFL, GRE, and GMAT) are important in determining a student's academic aptitude and likelihood of success in their chosen field of study. Therefore, it is required that official test results be submitted.

Residence Verification

They need legitimate documents, such as voter IDs, utility bills, rental agreements, or Aadhaar cards, to verify the student's residence address and confirm that he/she is a real resident of the address provided.

Passport size photographs 

The student's application packet must be completed, together with current passport-size photos in the required format, for identification and record-keeping purposes.

Co-applicant Documents 

Verification of Identity

Lenders carefully review formal identification documents, such as Aadhaar cards, PAN cards, passports, or driver's license, for the purpose of verifying co-applicant(s).

Verification of Address

It is essential to confirm the co-applicant's residential address in order to confirm their affiliation with the student. Thus, proof can be found in records such as utility bills, rental agreements, voter IDs, and Aadhaar cards.

Income Proof

Determining the co-applicant(s)' ability to support the student's educational path requires evaluating their financial situation. For this reason, we need records such as most recent pay stubs, the previous two years' income tax returns (ITR), Form 16 for the previous two years, or bank statements for the previous six months (if you are employed) or a year's worth of company transactions (if you are self-employed).

Relationship Verification

Lenders obtain pertinent documentation, such as birth certificates or court records, to establish the student's link with the co-applicant(s) and ensure transparency in their association.

Passport size photographs 

The co-applicant(s) must provide recent passport-size photos in the required format in order to keep proper records and help with their identity.

Additional Files

Loan Application Form

A thorough and properly completed loan application form is a crucial component of the application process, gathering all the information needed to expedite the loan request.

Certificate of Gap

When a student's educational journey has gaps, they must submit a gap certificate on 100 rs stamp paper describing the reasons behind the breaks in their studies.

Additional Supporting Documents

To support the loan application further, lenders may ask for extra documentation in accordance with certain standards, such as guarantor documents, academic references, or prerequisites particular to the course.

Bills

For record-keeping and evaluation purposes, formal invoices and receipts for educational expenses—such as travel, computers, stationery, etc.—must be submitted in order to ensure total transparency. 

 

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Documents Required for a Secured Loan in Visakhapatnam 

Verification of Ownership of Property

This important document provides strong proof of the borrower's legitimate property ownership position.Verifying the borrower's legitimate ownership of the collateral property is its main goal.

The Encumbrance Certificate

A crucial piece of documentation attesting to the collateral property's lack of monetary or legal obligations is the Certificate of Encumbrance.Making sure there are no unpaid debts or claims on the property is its primary duty.

Deed of Title

The legally binding Title Deed serves as an effective means of confirming the borrower's ownership rights over the collateral property.Its main purpose is to offer unquestionable evidence of the borrower's ownership of the property.

Property Valuation Report 

The Property Valuation Report is a precise evaluation of the collateral property's current market value, prepared by a qualified valuer.It is important for evaluating the property's value objectively in terms of money.

No Objection Certificate (NOC) from the Association or Housing Society

The property can be used as collateral for the loan if the housing society or association issues the No Objection Certificate (NOC).The mutual agreement between the borrower and the society/association is demonstrated by this certificate.

Land Registry

In order to verify the borrower's legitimate ownership of the land on which the collateral property is located, official land records are crucial.These documents offer verifiable proof of land ownership and its connection to the property.

The Possession Certificate

The certified Certificate of Possession attests to the borrower's actual physical possession of the collateral.Its legitimacy attests to the borrower's custodial rights and provides proof of property control.

Letter of Allotment (Visakhapatnam Specific)

A formal Allotment Letter from the Visakhapatnam Metropolitan Region Development Authority (VMRDA) or another appropriate government agency is needed for properties located in Visakhapatnam.This letter details the location of the borrower's allotted property in Visakhapatnam in accordance with local regulations.

Sprinkles

Education Loan Interest Rate 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% 

Calculate your Education Loan EMI

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Education Loan Interest Rate 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)

 

Check Your Education Loan Eligibility

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Other Education Loan Features Offered by Banks and NBFCs in Visakhapatnam 

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 In Ahmedabad, student loans have an extended grace period.
  • list items Borrowers are not obliged to make any loan repayments during this time.
  • list items Usually lasting between six and twelve months following course completion, the moratorium period for an education loan allows borrowers to plan their loan repayment strategy and transition into their careers.

Loan Margin 

  • list items The percentage of the total loan amount that is the borrower's personal contribution is known as the loan margin.
  • list items For example, the borrower must pay back 5% of the loan amount if the loan margin is set at 5%.The lender covers the remaining 95%.
  • list items In the event that the borrower is unable to repay the loan, lenders use the loan margin to reduce their risk.

Collateral Margin 

  • list items Collateral may be required in Ahmedabad as a security precaution for school loans.
  • list items A portion of the loan amount that is backed by the borrower's assets is known as the secured education loan with collateral.
  • list items Lenders are reassured and their risk exposure is decreased as a result, guaranteeing the preservation of lenders' interests as well as borrowers' hopes.

In Visakhapatnam 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.