Borrowing a loan itself might seem like an overwhelming task owing to the paperwork that might be involved, and the student loan interest rates that are charged, and the idea that there might have to be collateral or a guarantor involved. Although borrowing a loan for education or students might not seem like the easiest solution to the financial issues faced by them, it is by far the best and most suitable option for most students and also opted by a lot of students these days. If you are a student then you can easily relate to the problems and are eagerly looking for a solution too. One of the best solutions for this could be a student loan or an education loan.
If you are a student, who would like to consider the option of a student loan to fulfill your financial requirements, this article is the ultimate guide for you. In this article, we will be sharing with you all the required information about a student loan in India, the student loan interest rates, student loan eligibility, student loan interest rate calculator, and a lot more. By the end of this article, you will have all the required details about education loan interest rates and education loan interest rate calculator along with student loan interest rates in India, which will help you apply for a student loan for your requirements without much hassle.
Table of Contents
In the upcoming sections of this article, we will be taking a look at the following topics about student loans and student loan interest rates in India.
- What is Loaney?
- What is a student loan?
- Benefits for students
- Eligibility checker
- Interest Rates for student loan calculator
What is Loaney?
The students and the youth of today are very tech-savvy and use the internet for almost all their needs. This generation prefers online modes for almost every service more than offline options. The youth is internet friendly and can easily understand most online procedures be it for admissions, fee payments, or even financial services. Online loan borrowing and lending services are truly a blessing for this generation that believes much more in the power of the internet and the digital world. Online financial services make it easier for the youth to apply for the required facilities and avail of them as per their comfort. These days, there is a wide variety of online websites and portals offering loans to students. All you need to do is know which platform is reliable and choose a suitable loan for yourself. One of the trusted platforms for personal loans online is Loaney.
Loaney is a user-friendly money lending platform that offers personal loans of small amounts to its clients. Loaney is a reliable platform as it ensures the confidentiality of the user information and does not enquire about the reason for borrowing the loan. You can easily apply for a loan on this platform by filling in some personal details in the application form and registering on Loaney. The application is usually approved within a few minutes and the borrowed amount is transferred to your bank account. This amount can then be withdrawn by you as per your requirement. The only documents you need are your Aadhar card linked to your mobile number, pan card, a bank account with a net banking facility, and a picture of the applicant.
The benefits of borrowing a loan from Loaney are that the interest rates are low, the repayment periods are short and the eligibility criteria are simple. You do need to submit collateral or even present a guarantor while applying for a loan on Loaney. Not much paperwork or documentation is required for borrowing a personal loan on Loaney.
A loan amount of up to Rs. 15,000 is offered by Loaney to its clients. This personal loan can easily be used by students for funding their education or any other education-related expenses.
What is a Student Loan?
In this section, we will be looking at what a student loan is, why do students require an education loan, how to apply for the same, and a few more details about student loans.
Good-quality higher education is one of the keys to unlocking the door of a bright and successful future for most students. But with a steep rise in education prices and fees, this is becoming merely a dream for many students or puts a lot of pressure on the parents for the better career of the students. Higher education isn’t very affordable for all sections of students and the student loans provided by government or private lenders have proved to be a boon for students who aspire to join the course of their choice and make their dreams come true.
A student loan is an amount of money borrowed from government or private money lenders for financing your higher education, be it graduation, post-graduation, or even higher education abroad. A student loan covers the college tuition fee, accommodation, exam fee, and all other miscellaneous charges of the university. This loan can be applied for by the student as the main borrower and their parents, spouse, or siblings as the co-applicant. An education loan is offered by most banks in India to students who wish to pursue their higher education in India or abroad. The amount that is offered as a student loan varies from one bank to another and also depends on the internal policies of the bank. A student loan can be borrowed for full-time, part-time, or even vocational courses. It can be applied for graduation or post-graduation in most subjects of your choice in almost all common fields of education.
Most banks in India provide the details and information regarding education loans on their respective websites or you can call the customer service department of the bank of your choice to get more information about the application process. Student loans can be applied for both online and offline. For the online application process, you can submit the required documents and fill in the application form on the lender’s website or do so with the help of a virtual assistant that might be provided by the bank. To apply for an education loan offline, you must visit your bank’s assigned branch with the required documents and fill the application in person.
The following is the list of documents that you will need for applying for a student loan in India:
- Application form filled with genuine information.
- Photo ID
- Age proof
- A recent photograph of the applicant and co-applicant
- Address proof
- Signature proof
- Admission proof
- Income proof of the co-applicant
- Bank statements of last 6 months
- Income Tax return of the last 2 years with the income computation
- An audited balance sheet of the last 2 years
- Turnover proof
- Collateral documents
Further in this article, we will be looking at the benefits of a student loan, the student loan interest rates, student loan interest rates, and the benefits of the same.
Benefits for Students Loan
The following are the features and benefits of an education loan in India:
- Student loans can be borrowed for both Indian and foreign education.
- A maximum loan amount of up to Rs. 1 crore can be borrowed by the student.
- The repayment period is of 15 years.
- The interest rates of this loan are from 6.85% p.a.
- Female students can avail themselves of special concessional interest rates.
- A loan of up to a certain amount can be borrowed without submitting collateral or presenting a guarantor.
- EMIs are pocket-friendly.
- Up to 1 year of Moratorium period after the completion of your course.
Before you apply for your student loan, you must be clear about the eligibility criteria for applying for the same. This will help you apply for the loan without much hassle and will help you avoid getting your application rejected. The following must be kept in mind before applying for a student loan in India:
- The applicant must be a citizen of India who is 18-35 years old.
- The student applicant must have a good academic record.
- The student applicant should have secured admission to a recognized institution/university in a course eligible for student loans.
This is the basic eligibility for applying for a student loan in India. You must check with your moneylender or bank about the specific eligibility criteria before applying for a student loan. Let us now take a look at the student loan interest rates.
Student Loan Interest Rates Calculator
The interest rate of any loan is one of the most major aspects that need to be considered before applying for a loan. It is important to check the interest rates before applying because it is the additional charge that has to be repaid along with the principal amount of the loan. For a student loan, you can use an online education loan interest rates calculator or check with your money lenders for the same. The interest rate on student loans varies from one lender to another. The interest rate on student loans currently starts from 6.85% and is offered for a tenure of 15 years.
We hope that this article has helped you understand student loan interest rates better. For any further queries that you might have, we will be answering a few commonly asked questions.
1. What is the current rate of interest for student loans?
The current rate of interest for student loans is 6.85% to 10.05%.
2. What is the interest rate on student loans in India?
The interest rate on student loans in India varies from one moneylender to another. The rates vary from 6.85% to 10.05% in the present times.
3. Is education loan free of interest?
No education loans in India are not free of interest.