Education Loan in Kolkata

This article may be helpful to you if you live in Kolkata and intend to pursue further education either domestically or outside. Students usually need up to 15 lakhs to study in India and 45 lakhs to study overseas. Depending on the lender you select, the interest rate you pay on the school loan may vary from 8.30% to 13.5%.

Education Loan Providers in Kolkata for Studies in India 

We will read more about Kolkata's numerous education loan providers here. We're going to learn more about the several Kolkata-based companies that offer education loans. This covers banks, both commercial and government-owned, that provide education loans to students wishing to continue their study. 

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Education Loan Providers in Kolkata for Studies in Abroad

The table below lists the loan amount, processing fee, and name of the scheme that different banks in Kolkata offer to finance overseas higher education. 

Documents Required for Availing an Education Loan in Kolkata 

Basic documentation for the co-applicant, guarantor, and applicant (a student)

A loan application form that has been filled out and contains the applicant's personal data and two passport-style photos is required.

Applications can provide proof of residency in the form of a passport, voter ID card, utility bill, ration card, bank statement, or Aadhaar card.

It is necessary to present two proofs of residency if the permanent and current addresses are different.

Verification of identity requires both a PAN card and a passport.

The candidate must submit a personal assets and liabilities statement in the format required by the branch professional.

Regardless of whether it is a payroll account or a personal account, the applicant must provide their most recent six-month bank statement. If a co-applicant, their credits have to be submitted as well. Should they work for themselves, they have to submit a full year's worth of business dealings.

Every document needs to be self-attested.

Academic records submitted by applicants

Verification of the program's enrollment and the duration of the course must be provided.

The course cost schedule and the i20 form (for US students) are necessary, if they are accessible.

Scorecards from standardised tests, such as the GRE, GMAT, or IELTS, must be submitted by the applicant.

It is also necessary to print out the university ranking form.

The candidate needs to send in their degree, diploma, and mark sheets from grades ten through twelve.

Financial Co-applicant Income documents

If co-applicant is salaried: 

The most recent pay stubs for the last three months must be provided by the applicant.

Form 16 for two years is necessary.

A copy of the applicant's ID card from their employer must be submitted.

It is necessary to have the Income Tax Return for the preceding two years.

If self-employed:

The last three years' income tax returns must be provided by the applicant.

If the applicant is a self-employed business owner, they need to provide the balance sheet for their Profit and Loss account for the last three years.

Documentary proof of the applicant's company or business address must be submitted.

Other Documents 

For state banks, a cheque for Rs. 11,800 must be provided as a processing charge; for private banks, one to two percent.

A letter indicating that the co-applicant would be responsible for any costs not reimbursed by the loan must be submitted by the applicant. Additionally, checks for attorney and evaluator fees can be needed if the bank oversees the legal and value procedure.

On stamp paper worth Rs. 100, the owner of the collateral property must provide an affidavit. If there are several owners, an affidavit from each of them is required.

Additional Documents 

Statements of any outstanding loans from the prior year must be provided by the applicant.

Any payments made in advance must be accompanied by receipts.

A proforma invoice must be submitted for the trip, laptop, or any other item that requires a loan.

A letter stating that the co-applicant's income tax return is unavailable is needed.

If there are any gaps in their profile, the candidate must explain them in writing.

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Collateral Documents Required for a Secured Education Loan in Kolkata 

You must submit collateral documentation for the property you are pledging if you choose to apply for a secured education loan in Kolkata. The aforementioned records are required:

The pledged property's title deed

A gift deed, selling contract, or recorded will

The original registration receipt for the previously mentioned agreement

A letter of allocation from the regional administration or another authorised government body

A title document (EC) or a 30-year chain of sale deeds that certifies the property's ownership. If the property has been owned for longer than thirty years, the previous sales documentation is acceptable.

Power bills and current property taxes are from the same address.

Acceptable Collaterals in Kolkata for Education Loans 

You must provide the required papers if you intend to use a residential home or flat as collateral. Collateral can also include government bonds, fixed deposits, insurance policies, and non-agricultural land. Gramme Panchayat properties might also be acknowledged in some circumstances.

You must submit the mutation deed along with all other necessary collateral documents in order to be approved for a student loan with real estate in Kolkata. In addition, government banks could ask for a structural examination report if the property is older. The remaining supporting documentation is typical.

It is important to remember that each state has different requirements for collateral documentation. You can get a detailed list of the documentation needed for student loans with collateralized loans from your financial advisor.

Education Loan Interest Rate in Kolkata for Studies in India 

We will examine the various interest rates that Kolkata's education loan companies are willing to offer. Because interest rates impact the amount of interest a borrower must pay on a loan, they are a crucial consideration when selecting an education loan provider. 

Banks in Kolkata are offering credit rates as low as 8.30% for higher education in India. 

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Education Loan Interest Rate in Kolkata for Studies in Abroad

Banks based in Kolkata provide interest rates as low as 10% for students planning to pursue higher education overseas. 

Other Education Loan Features Offered by Banks and NBFCs in Kolkata 

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 Kolkata give.

Fees for colleges

The price of lodging

Exam fees

Fees for libraries

Fees for laboratories

Cost of Books Flight (For study abroad)

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 Kolkata 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 for an education loan 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, 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. 

Common Reasons for Education Loan Rejection in Kolkata 

Students in Kolkata who approach banks or lenders directly for an education loan may be turned down for a number of reasons, some of which are listed below:

Poor CIBIL scores: A score of 685 or more is generally regarded as satisfactory. However, different banks have varied minimum requirements for CIBIL scores. SBI will take scores as low as 591, though. The loan application can be rejected if the co-applicant's score is insufficient to meet the bank's standards.

Poor academic achievement in the past can have a detrimental effect on a borrower's prospects of getting a loan approved since banks may interpret it as a sign of the borrower's capacity to finish their school.

Selected nation and degree programme: Banks have a tendency to give preference to students majoring in STEM subjects over those pursuing other courses, and they might reject applicants from third-world nations for higher education.

Inadequate records: The loan process cannot start without the proper paperwork and income verification; otherwise, the application may be denied. It is crucial to learn about the lending institution's regulations about the suitable study abroad programmes and loan approval standards.