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Discover the step-by-step process of student loan applications. Get insights on eligibility, documentation, and tips to secure funding for your education smoothly.
Education loans provided by public banks have become a savior for numerous students, without crushing the academic dreams of many students. Banks governed by the government are known as Public Banks. If you are a student who is in need of a higher loan amount and wants to derive lower interest rates than public banks are your way to go.
Public banks are providing competitive interest rates, flexible repayment options, and often extended grace periods, which ultimately reduces the financial strain on students and their families. If you’re planning to apply for an education loan from a public bank, you will have to fill out the loan application form or you can also go to the nearest branch.
Education Loans from Public Banks - An Overview:
Feature | Description |
---|---|
Lenders |
SBI, BOB, UBI |
Loan amount |
Up to INR 1.5 Cr |
9.5 - 11% |
|
Course duration + 12 months |
|
Repayment during course |
Nil |
Processing time |
Up to 15 - 30 days |
The Vidya Lakshmi portal offers a solo window for students to acquire information and details about various loan schemes provided by public and private banks and make applications for them. You can apply for an education loan via the Vidya Lakshmi portal by following the below steps:
Step 1: Begin by filling out the Common Education Loan Application Form (CELAF). This is an important and initial step for your loan application. Access the dashboard and click on the 'Loan Application Form' tab.
Step 2: Next, click on the orange tab labeled 'Search and Apply for Loan Scheme' on the dashboard. This will allow you to explore and apply for various education loan schemes available.
Step 3: Use the provided filters to refine the search results according to your specific requirements. You can filter the schemes based on factors such as whether it is for domestic or international study, the level of the course, and the desired loan amount.
Step 4: Once you have applied the filters, a list of suitable loan schemes will be displayed. Each scheme will have an option to apply for it.
Step 5: Click on a particular scheme that interests you, and you will be redirected to a page providing detailed information about that specific scheme. Review the details carefully to ensure it aligns with your needs.
Important note: Keep in mind that you can apply for a loan from a maximum of three banks, and only one scheme per bank can be selected for the application.
The procedure to apply for an abroad education loan should always begin from exploring and comparing different lenders and their products. Borrowers win half of their battle as GyanDhan evaluates your profile and chooses the best lender for them. To apply for an abroad education loan through GyanDhan, you need to follow five simple steps mentioned below:
Step 1: Check your loan eligibility.
Step 2: Our expert education loan counselor will check and evaluate your profile.
Step 3: The team of GyanDhan will either arrange a doorstep pickup for your documents or will ask you to upload your documents.
Step 4: Once your documents are uploaded, GyanDhan will move forward with the rest of the formalities.
Step 5: Disbursement of the amount will be done by the bank as per schedule.
State Bank of India, is one of the greatest public banks in India. SBI is a popular choice for education loans amongst students and their parents. The education loan schemes of SBI are designed to help students and their parents in financing their education related expenditures.
You’ll be glad to know that SBI provides both online and offline modes for applying for an education loan.
Offline Procedure:
To apply for an education loan in the offline mode, you need to go to the nearest SBI branch and initiate the procedure with the bank. If you decide to go with the offline mode, be prepared to make countless bank visits for the submission of the documents.
Online Procedure:
To apply for an education loan in the online mode, you need to complete the below mentioned steps.
Feature | Description |
---|---|
Processing Fees |
INR 10,000 + GST (Non-refundable) |
Rate of Interest |
11.15% (Floating) (0.5% concession for female applicants) |
Moratorium Period |
Course duration + 6 months |
Repayment Tenure |
15 years |
Margin Money |
INR 7.5 Lakh-INR 20 Lakh - 15% INR 20 Lakh - 10% |
Did you know: that GyanDhan is in partnership with SBI? So if you apply for an abroad education loan at SBI through GyanDhan you are eligible for a free doorstep document collection.
Bank of Baroda (BOB) is one of India's leading public sector banks, known for its broad range of financial products and services. Established in 1908, BOB has a powerful presence not only in India but also in several countries around the world. When it comes to education loans, BOB offers competitive options to help students pursue their dreams of higher education both in India and abroad.
Bank of Baroda provides two main channels for applying for an education loan: online and offline.
Offline Procedure:
To apply for an education loan offline, find the nearest Bank of Baroda branch in your locality. Explore various loan options, fill out the application form accurately, and gather all the required documents such as ID, address proof, academic transcripts, and admission letter. Provide your application and documents to the bank's loan department for examination and potential approval based on their criteria.
Online Procedure:
Feature | Description |
---|---|
Processing Fees |
INR 10,000 + GST (Refundable) |
Rate of Interest |
|
Moratorium Period |
Course duration + 12 months |
Repayment Tenure |
10 - 15 years |
Margin Money |
0 - 15% |
Union Bank of India is one of the well-known public sector banks in India that offers education loans to eligible students to pursue higher education in India and abroad. These loans help students and their parents finance the cost of tuition fees, books, accommodation, and other related expenses. Both online and offline modes are available to apply for an education loan from Union Bank of India.
Offline Mode:
To obtain an education loan from Union Bank of India through the offline mode, you need to visit the nearest branch. Then you can collect the application form and fill it out accurately, attach required documents, and submit it through the representative. Stay updated and in touch with the branch for application updates. Once approved, the bank will disburse the loan per the agreed terms.
Online Mode:
Feature | Description |
---|---|
Processing Fees |
Up to INR 40 Lakh - INR 10,000 + GST Above INR 40 Lakh - INR 20,000 + GST |
Rate of Interest |
For listed universities - 9.25% For non-listed universities - 10.5%
|
Moratorium Period |
Course duration - 12 months |
Repayment Tenure |
15 years |
Margin Money |
|
Did you know: that Union Bank of India is the only public bank that provides abroad education loans of up to INR 40 Lakh, without any collateral. The Bank approves unsecured abroad education loans for selected courses and universities. To check if your targeted university is listed in the Union Bank’s pre-approved list, request a callback.
Punjab National Bank (PNB) is one of the prime public sector banks in India, offering a range of financial products and services, including education loans to help students pursue higher education in India and abroad. These loans cover tuition fees, living expenses, and other related costs. You can choose between online and offline application modes to apply for an education loan from Punjab National Bank.
Offline Application Mode:
To apply for an offline education loan through Punjab National Bank (PNB), follow the below-mentioned steps:
Online Application Mode:
Follow these steps to complete the online application process at PNB:
Feature | Description |
---|---|
Processing Fees |
1% of the total loan amount |
Rate of Interest |
9.55% (Non-listed colleges) 8.80% (Listed colleges) |
Moratorium Period |
1 year after the course completion |
Repayment Tenure |
15 Years |
Margin Money |
15% |
To apply for an education loan at a public bank, you are required to submit or upload the following documents.
Applicants' documents:
Co-applicant’s documents:
Income proof for salaried co-applicant/guarantor:
Income proof for self-employed co-applicant/ guarantor:
Documents required for loan against property:
The list of documents required for collateral-based education loans depends on several factors, primarily: property type, purchase history, and location. Broadly, the following documents are required:
Common Documents:
Additional documents if you’re applying for an education loan with a property in the following cities:
Mumbai or Pune:
Hyderabad:
Bengaluru:
Applying for an education loan from a public bank can be an important step in funding your education. To ensure a smooth and successful application process, it's crucial to avoid common mistakes that can lead to delays or rejections. Here are few mistakes to avoid when applying for an education loan from public banks:
Applying for a loan without carefully researching the terms and conditions, interest rates, and repayment options of different banks. Research and compare loan offerings from various public banks to choose the one that suits your financial needs and offers favorable terms.
Failing to provide all the required documents or submitting incomplete paperwork can lead to delays or rejection. Carefully review the bank's documentation requirements and ensure you submit all necessary documents correctly and in a timely manner
Providing incorrect or inconsistent information on your loan application can lead to rejection or complications. Double-check all the information you provide on the application form and supporting documents for accuracy. Be truthful about your financial status and academic history.
Applying for a loan without addressing or improving a poor credit history if you have one. If you have a low credit score, consider taking steps to improve it before applying for a loan. This may involve paying off outstanding debts or seeking a co-signer with a better credit history.
Not seeking guidance from financial advisors or loan counselors when needed. If you are unsure about any aspect of the loan application process, consult with financial experts or counselors who can provide guidance and advice.
In Conclusion:
Applying for a student loan through public banks can be a viable and affordable option for those seeking financial assistance to pursue their higher education dreams. Public banks offer competitive interest rates, flexible repayment options, and government-backed schemes that provide a safety net for borrowers. Moreover, the accessibility and widespread network of public banks make them a convenient choice for students across the country.
However, navigating the intricacies of the loan application process can be challenging, and it's crucial to stay informed and make well-informed decisions. This is where GyanDhan comes into play. With our expertise, personalized guidance, and an extensive network of partner banks and lenders, we simplify the application process, help you find the best loan options, and ensure you make the most of your education financing.
So, if you are on the lookout for a hassle-free student loan experience with the added advantage of expert assistance, don't hesitate to give GyanDhan a try. We are here to help you achieve your academic goals without any financial stress. To start your education loan journey with us, check your education loan eligibility.
There isn't a one-size-fits-all answer to this question as the best bank for an education loan can vary based on your individual circumstances and the terms offered by different banks. Some popular public banks in India that offer education loans include State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BOB), Canara Bank, and others. It's advisable to compare the interest rates, loan terms, and eligibility criteria of various banks before making a decision.
The best way to apply for an education loan is to apply through GyanDhan, India’s first education financing marketplace. With partnerships with leading lenders such as State Bank of India, Bank of Baroda, ICICI Bank, Axis Bank, and HDFC-Credila, we provide the best loan option to aspiring students. To secure an education loan from a government bank, check their loan eligibility.
To initiate an education loan application, first, check your eligibility and choose the right lender. Collect the required documents. Next, complete the application online or in person, providing accurate information. If needed, arrange for a co-signer with good credit. Await the lender's decision, review the loan terms upon approval, and accept the loan.
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