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In Tamil Nadu, education loans are vital for students aiming to finance their higher education due to the high costs associated with it. The state's commendable 100% gross enrollment ratio (GER) in primary and secondary education underlines the importance of these loans. To secure an education loan in Tamil Nadu, students need to meet certain eligibility criteria, which include academic performance, the course and institution chosen, and financial background. Required documents generally include proof of admission, academic records, KYC documents, and proof of income for the co-applicant. These loans cover tuition fees, books, accommodation, and other related expenses.
Tamil Nadu is a significant hub for education loans in India, with a notable percentage of loans disbursed by public sector and private sector banks dedicated to students from the state. This emphasis is due to the government's proactive stance in supporting educational financing. To choose the best bank for an education loan in Tamil Nadu, students should consider various factors such as interest rates, loan terms, and the ease of application processes. Leading banks and NBFCs often provide competitive loan options tailored to meet the diverse needs of students pursuing higher education both domestically and abroad.
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 40 lakh |
1% + GST |
Auxilo |
Up to INR 65 lakh |
Up to 2% of the sanctioned loan amount |
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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Bank Name | Loan Amount | Processing Fee |
---|---|---|
Up to INR 1.5 cr with collateral |
INR 10,000 |
|
Prime A - INR 1 cr Prime B - INR 40 lakh |
0.75% on the sanctioned loan amount |
|
Up to INR 2 cr (secured) Up to INR 1 cr (unsecured) |
Up to 0.75% TO 1% + GST |
|
Up to INR 75 lakh without collateral |
Up to 1.5% of the sanctioned loan amount |
|
Up to INR 2 cr (secured) Up to INR 40 lakh (unsecured) |
INR 5000 |
|
Up to INR 75 lakh |
0.5% - 1% |
|
Up to INR 75 lakh |
1% - 1.5% |
|
Up to INR 65 lakh |
0.5% - 1.5% |
|
Up to INR 80 lakh |
1% - 2% |
|
Up to 100,000 USD |
5% (adjusted in the loan amount) |
|
Up to 100% cost to study |
Up to 5%, added to loan amount* |
|
Up to 1.5 cr with collateral |
INR 10,000 + GST |
*Note: Upon loan approval, students are required to pay an upfront fee of $100 to receive their sanction letter.
Explore Best Banks for Education Loans!
When applying for an education loan in Tamil Nadu, whether it's a secured education loans or unsecured education loans , you need to prepare a range of documents.
For Unsecured Loans:
For Secured Loans:
These documents will help authenticate your application and speed up the loan processing.
In Tamil Nadu, acceptable collaterals for securing an education loan can include various types of assets:
1. Land Ownership Documents: Title deeds or pattas, which confirm ownership of the land.
2. Commercial Properties: These are often accepted by private lenders as collateral.
3. Agricultural Lands: Can be used as security against the loan.
4. Financial Securities: Fixed Deposits (FDs), insurance policies, and government bonds are also commonly accepted as collateral.
These options provide flexibility for students and families looking to secure funding for education.
Agricultural land can be used as collateral for obtaining education loans in Tamil Nadu. Hence, Union Bank of India (UBI) is not offering loans against agricultural land. However, they do provide loans against properties located in areas governed by a Gram Panchayat, provided you can furnish a Non-Agricultural (NA) certificate for the property. This certificate is essential as it verifies that the land, though situated in a Gram Panchayat area, is designated for non-agricultural purposes, making it eligible for securing a loan. |
Avoid Loan Letdowns: Know What Knocks Your Education Loan Off Track!
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Bank Name | Interest Rate | Interest Rate Concession |
---|---|---|
State Bank of India |
Starts from 8.30% |
0.60% Business strategy discount 0.50% - for female students 0.50% - Rinn Raksha |
Axis Bank |
Starts from 11.5% |
0.5% - 2% |
ICICI Bank |
Starts from 10.5% -11% |
0.5% - 2% |
IDFC First |
Starts from 8.5% - 10% |
0.5% - 2% |
UBI |
Starts from 11.15% |
0.5% for female students 1% if the SI is paid in full |
HDFC Credila |
Starts from 10.25% - 12.75% |
- |
Auxilo |
Starts from 11% - 13.5% |
0.5% - 2% |
InCred |
Starts from 11% - 13.5% |
0.5% - 2% |
BOB |
Starts from 8.85% |
0.5% |
Bank Name | Interest Rate | Interest Rate Concession |
---|---|---|
State Bank of India |
Starts from 10.15% |
0.5% concession in interest for female students 0.5% - Rinn Raksha |
Axis |
9.99% - 12.5% |
- |
ICICI |
10.25% - 12.5% |
- |
IDFC First |
9.5%-11% (secured) 11%-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 |
Verify your eligibility for an education loan with GyanDhan today! Simply visit the GyanDhan website, use their loan eligibility tool, and receive instant feedback on your options.
Check Your Education Loan Eligibility
To qualify for this education loan scheme, applicants must meet specific eligibility requirements:
1. Parental or Guardian Representation: A parent or guardian must act as the co-borrower for students who are minors, ensuring legal and financial responsibility.
2. Joint Loan Agreement: The loan will be issued in the names of both the student and the parent/guardian, linking both parties to the financial commitment.
3. Admission Through Merit: The student must have secured admission to a recognized institution either in India or abroad, based on merit through a competitive selection process.
These criteria are designed to ensure that the loan is used for legitimate educational purposes and that there is adequate financial backing to support the student's academic journey.
Top Benefits of Education Loans—Learn How They Can Empower Your Academic Journey!
In Tamil Nadu, securing an education loan offers numerous benefits, including full coverage of academic expenses, a moratorium period for easier financial management post-graduation, and potentially no loan margin at some private banks, easing the initial financial burden for students. However, loan applicants must navigate challenges such as proper documentation, compliance with property regulations, and adherence to approved building plans. Addressing these elements efficiently ensures smoother loan processing and reduces the likelihood of rejection, paving the way for financial support that allows students to focus solely on their educational pursuits.
In Tamil Nadu 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 favorable 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.
Education loans typically cover tuition fees, examination fees, book costs, equipment, accommodation, and sometimes travel expenses for studying abroad.
The moratorium period is a grace period after graduation where students are not required to make loan repayments. This allows graduates time to secure employment without the immediate pressure of repayments.
Yes, collateral such as property deeds, commercial properties, agricultural lands, fixed deposits, and government bonds can be required, especially for higher loan amounts.
Common reasons include incorrect or insufficient documentation, lack of mandatory property approvals (like CMDA or DTCP), and deviations from approved building plans.
Compare loan offers from multiple banks considering interest rates, processing fees, loan terms, and additional benefits such as moratorium periods and loan margins.
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ICICI Bank
Axis Bank
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Prodigy
Auxilo
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IDFC
InCred
MPower
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