Education Loan in Kerala – Which Bank is Best For Education Loan in Kerala

Education Loan in Kerala: Are you a student in Kerala and thinking to take an education loan? Then look at this article as it might help you a lot. Because when you are taking a loan for your studies knowing each piece of information is very important. Educational Loans are provided to help meritorious students who are financially low.

Here in this blog post, you will know the complete information about education loan in Kerala like the process of loans, the documents required, the best banks that provide educational loans, and many more.

What is Education Loan?

An education loan is nothing but a financial product that is offered by banks for merit students who cannot afford the study due to their financial situations. Education loan is not only for the fee to pay for higher studies it also includes expenses like tuition fee, accommodation, food, travel, and others that are related to education.

You will get an education loan if you study in India and Abroad. This is the best financial support that was given by the government for the merit students.

Still, if you want to know more about what is education loan then checkout.

Best Features That Are Offered By Banks For Education Loans in Kerala

Here we are going to see some of the best features that are offered by banks for education loans in Kerala.

• Moratorium Period
• Expenses Covered
• Loan Margin
• Collateral Margin

Moratorium Period

The moratorium period is nothing but the time frame that is provided for the applicant and in this time period, no need to pay the money back to the borrower. And the banks provide this time frame once the applicant has completed his studies and till they have a stable income.

And this time frame varies from bank to bank. But commonly it will be between 6 to 12 months.

Expenses Covered

Taking this education loan, it does not only covers institution fees but is also used for tuition fees, and other expenses that need for your education can be used in this loan amount. But as it is different from bank to bank read the agreement on what the loan amount covers before you use it.

Loan Margin

Before you take the education loan, you just check for the loan amount in different banks as some banks will provide you 100% loan whereas some lenders only provide 95% of the loan and borrowers need to pay the remaining 5%.

Collateral Margin

Collateral is nothing but the asset that the borrower provides as a guarantee, it might be land, house, insurance anything. And this collateral margin is the percentage of the total loan amount that is backed by an asset. Collateral margin is often used by lenders to minimize their risk.

Eligibility Criteria That Students Need For Education Loans in Kerala

Normally, we know that education loans are provided by the government for students who are in backward classes. But that student loan will not be provided easily. Education loans in Kerala will be given only to the students who will pass the eligibility criteria.

Below are the eligibility criteria that a student need to have who is going to take a loan.

• A student who is interested in taking the loan should be Indian National.
• Applicant should have secured admission to the college before disbursement.
• If the student is below 18 years they should be represented by guardians and parents.
• The loan shall be in the joint names of the student and parent.

Documents That Are Required For Education Loans in Kerala

If you are a student in Kerala and looking for an education loan then to approve the loan every bank has some terms and conditions and even there are some documents that are needed to provide them. We will look into the documents listed below.

Student Documents

• Aadhar Card, Pan Card, Passport
• 10th, 12th, diploma, graduation, PG Certificates.
• Competitive exam scorecards like IELTS, GRE, and GMAT.
• Admission Letter from University
• Address proof like electricity bill, house tax, etc.
• Work Experience letter

Application Form

• Loan Application Form
• Two passport photographs
• Signature of the applicant

Financial Documents

You need to submit the financial documents that are shown below for salaried individuals.

• Salary Slips for the last 3 months
• Bank Statements for the last 6 months
• Form 16 (past 2 years)
• Company ID
• Income Tax Returns for last 2 years.

If you are a self-employed individual then below financial documents need to submit.

• Bank Statements( 6 months)
• Business Adress Proof
• Income Tax Returns( last 3 years)
• Balance Sheet
• Profit and Loss Account( Last 3 years)

Other Documents

• Receipts of transactions that are made in advance.
• Stamp Paper for any gaps in education and employment
• Loan Statements
• Bank Statement
• Letter for not having ITR for co-applicant
• Expenses like travel or laptop.

Extra Documents Required for Education Loans in Kerala

• Registered Sale Agreement
• The title deed of the property being pledged as collateral
• Copy of a plot layout for the property or municipality-approved building plan.
• Original receipt for the agreement listed above
• Latest property tax bill.

Best Banks That Provide Education Loans in Kerala

Here we have provided you with the best banks that provide education loans in Kerala to study in India.

Here we are going to provide you with the best banks for the education loan to study abroad.

If you would like to know How to Apply For Education Loan For Abroad Studies, you can checkout.

Education Loan Interest Rates Provided by Top Banks in Kerala

As we are going to discuss the interest rates that were provided by top banks in Kerala, here we are going to look at the interest rates for studies in Abroad and India.

Repayment Plan For Education Loans in Kerala

The repayment plan starts on the education plan once after the completion of the moratorium period. We will look into the repayment period for the education loans in Kerala given below.

• If you have taken a loan above Rs. 7.5 lakhs then the maximum repayment period will be 15 years.
• If you have taken a loan above Rs. 5 lakhs then the maximum repayment period will be 10 years.

When you are paying the loan amount, the applicant should pay the amount along with the interest rate.

Best Subsidy Schemes That Were Provided By Government For Education Loans in Kerala

If you are a student in Kerala and interested to take an education loan, then you will get an education loan but many students cannot able to pay the interest rates and loan amounts who are in backward classes. For them, the Kerala government has provided some subsidy schemes for Education loans.

Look into those subsidy schemes below.

• Padho Pradesh Scheme
• Dr. Amedkar Subsidy Scheme
• Central Scheme for Interest Subsidy

Padho Pradesh Scheme

The government has provided this scheme to assist individuals from economically weaker sections of communities who want to study abroad. If you want to use this scheme there are certain eligibility criteria to follow.

• Proof of Income that is recognized by the Government
• Loans that you are taking must come from the bank that is listed by the Indian Banking Association.
• Income should be below 6 lakh rupees.
• Admission to an institution outside India should be there.

Dr. Amedkar Subsidy Scheme

This subsidy scheme was introduced by the Ministry of Social Justice and Empowerment to lower the interest rate for students who are OBC and EBC during the moratorium period. The main goal of this program is to provide financial assistance to the students.

But you cannot get this subsidy scheme easily, as it has some eligibility criteria to follow.

• Students who are applying for this scheme should have a caste certificate.
• Admission to an institution outside India should be there.
• Household Income should have Rs 8 lakh rupees annually.
• Loans that you are taking must come from the bank that is listed by the Indian Banking Association.

Central Scheme for Interest Subsidy Scheme

Ministry of Human Resource Development has introduced this scheme for the economically weaker sections to waive the interest payments for student loans. And to use this scheme the eligibility criteria that we need is

• Students must provide the membership proof of the economically weaker section.
• Admission to an institution outside India should be there.
• Family Income should not exceed 4.5 lakh rupees.
• Loans that you are taking must come from the bank that is listed by the Indian Banking Association.

FAQs on Education Loan in Kerala

1. Which bank is best for education loans in Kerala?

One of the best banks that we have for education loans in Kerala is UCO Bank. It provides the best interest rates and favorable terms for the students.

2. How much educational loan can I get in Kerala?

If you are studying in India, you will get upto Rs. 10 lakhs, and if you are studying abroad you will get upto Rs.40 lakhs for an education loan in Kerala.

3. Can I get a 100% education loan in Kerala?

Yes, we can get a 100% education loan in Kerala.

Summary

Above Information that we have provided on education loans in Kerala may help you. Study it completely and take a step on an education loan if you are a student in Kerala. Education loan is the best opportunity for deserving students who have an ease to study but can’t afford it.

If you are interested we have other articles on education loans like How to Get Education Loan From Government on our pagestudent education loan on our learncbse.com website.

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