Aditya Birla Finance Education Loan

Aditya Birla Finance is one of the top 5 Non-Banking Financial corporations in India, which is a Subsidiary of Aditya Birla Group. Aditya Birla Finance provides Educational loan under its Personal loan category for Education both in India and abroad without any Collateral.

The processing fee usually varies from 0.5% to 2.50% of the total loan amount, here the processing fee can be paid in two ways:-

• Pay the amount after the sanction and before the disbursement
• You can get the processing fee deducted from the loan amount at the time of disbursement.

However, at WeMakeScholars we do not charge any kind of processing fee from the students for all the services we provide, as WeMakeScholars is a government-funded organization under Digital India Campaign. 

This is one of the first steps of getting your education loan process started is to submit the documents and initiate your process, and there are a few specific documents you will need to submit to Aditya Birla Finance.

Basic Identity/ Address proof documents:-

• Pan card
• Aadhar card
• Passport
• Driving license 

Education loan if the co-applicant is a Salaried Individual:-

• 6 months bank statement
• Salary Slip for the latest 3 months
• Latest 2 years ITR
• Form 16 of past 2 years
• Bank KYC documents

Education loan if co-applicant is Self Employed Individual:-

• Business registration certificate
• GST number
• Latest 2 years ITR
• Balance sheet with Profit and loss account
• TDS certificate (form 16A)
• Tax challans for Income declared in ITR
• Clearance certificate or IT assessment

Moreover, these are the basic documents for all profiles, but at the bank, you might need to submit some extra documents according to your profile. 

Insuring your education loan is the best security for both the co-applicant and for the family members of the applicant, as insurance will be covering the repayment of the loan incase of a sudden death or permanent disability of the applicant. The insurance amount is around 1%-2% of the loan amount.

Aditya Birla Finance provides 100% of the total required amount based on your eligibility, but in case the required amount for your education loan is more than the amount that you're eligible for, you need to fund the rest of the funds from your pocket.

For example:- The total amount required for your educational loan is 70 lakhs, and the maximum amount that you're eligible for in the  Aditya Birla education loan is just 50 lakhs. In that scenario, you're supposed to fund the rest 20 lakhs from your pocket.

In Situations like these, we suggest the students initiate the education loan process with WeMakeScholars by requesting a callback or filling tout he common application form so our financial officers can get in touch with you and help you out.

If you are looking to apply for an education loan from Aditya Birla Education Loan interested in starting your application process, then here are two ways you can approach the application process. You can apply for the education loan in offline and online methods. Go through the steps of both mentioned below and choose the one best for you. By going through the pros and cons of each of the processes. 

Offline application process

• Go to the Aditya Birla Finance Corporation( located in only major cities) and get to know about the education loan products
• Understand and pick the best product that is suitable for your profile and fill out the Aditya Birla education loan application form
• Enquire about the required documents for your profile and gather them
• Once the documents are arranged, You have to go to the branch again to submit them and initiate the process.

Online Application process via WeMakeScholars

• Step 1 Get in touch with WeMakeScholars by requesting a callback or filling out a common application form
• Step 2 Provide all your education loan details to the assigned  financial officer via call

After analyzing your loan details, your financial officer will suggest and connect you to suitable lenders

• Step 3  pick the best lender of your liking and let your financial officer know.
• Step 4 Now, the financial officer will be providing you with a checklist of documents customized for your profile, and submit them to the bank/Lender.
• Step 5   Chill and relax now as your financial officer will take care of your loan process, if required to take follow-up calls in your free time.
• Step 6  you can collect your Educational loan sanction letter in 7 working days.

The application process is quite more complicated than it appears to be if you go directly to the banks to get your education loan sanctioned. Here’s is the list of issues if you go directly to the banks/Lenders:

• A particular list of required documents not provided
• Must visit the bank multiple times to know the updates
• Delayed process
• Biased in legal and valuation reports
• Customer care channels are not properly segregated
• The information provided is not accurate
• Unfamiliarity regarding education loan eligibility and coverage

So, why bother with the long queues when you can directly get professional service with WeMakeScholars? With years of experience, And processing thousands of loan files on a daily basis, we proudly call ourselves, Expert in the field of educational loans, here’s why:-

• Professional guidance- Our team assigns you to the most professional lenders as per your profile and makes sure you get the loan hassle-free.
• Mediatory support- The Assigned financial officer will negotiate the rate of interest on behalf of you to get the best deal.
• Online application process- We suggest you apply and get an education loan via the online process as it is faster and more reliable. 
• Short processing time- With the help of WeMakeScholars, you can get an educational loan in 7 days from private banks and NBFCs, and it takes only 15-20 days to get an educational loan sanctioned from a public bank, after submission of documents in the bank.
• Round-the-clock availability- We are at your service from 9 AM to 9 PM to assist you at any time in your online education loan application process.
• Benefit in Tax- At WeMakeScholars, we will be providing all the information on how you can get the maximum tax benefits offered by the government of India.
• Cashback offer- You're eligible for a cashback of up to Rs 3000 at the time of your disbursement.

Aditya Birla Finance has an education loan EMI calculator of their own in their Website,but if you’re looking for most accurate numbers, you should go with WeMakeScholars educational loan EMI calculator, Which gives you results with precision, considering the following aspects:

• Loan amount
• Moratorium period
• Rate of interest
• Grace period
• Repayment condition in the moratorium period
• Loan amount paid off by the semester
• Type of interest rate, simple or compound

Perks of using the WeMakeScholars EMI calculator:

1. High Accuracy- The calculator is perfectly accurate as it takes all the factors into account that change the education loan EMI calculation
2. Free of cost- Every service of WeMakeScholars is free of cost to all the students, and so is the education loan EMI calculator.  
3. Detailed explanation- The calculator provides you with all the required information about the EMI, Interest that adds in each month, principal amount, and current outstanding amount.
4. Strategic advantage- Students along with their parents can decide and change the loan parameters as per their financial capacity after going through the EMI calculator.

Aditya Birla Finance provides you with a tenure period of 7 years to repay the loan amount. And you can pay it early too in case you want to save on the interest amount, but you might be charged a pre-closure fee of around 1-3% depending on your loan profile.

For example:- A Student has taken an unsecured (non-collateral)  education loan of 30 lacs at an interest rate of 12% and planned on repaying it in 10 years, then this is the repayment schedule for them.

In case you choose to repay it earlier, you can opt for any of the following Strategies:-

• Considering transferring your education loan
• Opting for shorter repayment periods (as done in the above example)
• Prepayment or a part payment

Tip:  At the time of repaying your last EMI, pay a little extra amount with that last EMI, considering that in case the branch manager might choose to close your loan the next day which might result in some additional charges. 

When you choose to process your educational loan with Wemakescholars we extend our support even after getting you the loan, we look after the post-sanction issues and make sure that you get all the help you need till you close the loan process

There are several interest subsidy schemes initiated by the Indian government to provide equal opportunities for higher education for economically and socially weaker sections of society. These schemes offer relief concerning the interest charged on education loans so that students do not have to worry about their education expenses. Major initiatives are CSIS for students belonging to the economically disadvantaged section, the Dr Ambedkar Interest Subsidy Scheme for OBC/EBC, and the Padho Pardesh scheme for minorities. Both programs are aimed at certain populations and provide essential assistance with their education.

Central Scheme for Interest Subsidy (CSIS)

This scheme was inaugurated by MHRD, which is now the Ministry of Education, to provide interest subsidies for education loans taken by the students who belong to the EWS section of our society. 

Eligibility criteria for CSIS 

• Students must have proof that they belong to the EWS section of our society.
• Students should secure admission in approved streams of study in India only.
• The net annual income of the student's family should not be more than Rs 4.5 lakhs per annum.

Benefit: Under this scheme, during the moratorium period, all eligible students need not pay any sort of interest on their education loan taken to study in India.

Dr. Ambedkar Interest subsidy scheme for OBC and EBC students

The Ministry of Social Justice and Empowerment inaugurated this scheme to the students who belong to the  EBC and OBC sections of society, to give a deduction on their interest rate payable within their moratorium period of the education loan. This is the scheme for students who want to study abroad.

Eligibility criteria for Dr. Ambedkar's Interest subsidy scheme for OBC and EBC students

• Students must have secured admission in the approved streams at M.Phil, Masters and PhD levels abroad.
• The family annual net income of the student’s family shouldn’t be more than Rs 8 lakhs per annum for the EBC category as well as the OBC category.
• Caste certificate is a must for students belonging to the OBC category.
• Loans taken from the scheduled banks concerning the Indian Banking Association guidelines are only acceptable.

Benefit: The interest amount that should be paid during the moratorium period of the loan will be waived off.

Padho Pardesh Scheme

It is an interest subsidy scheme introduced and looked after by the Ministry of Minority Affairs to benefit students belonging to religious minority communities such as  Muslims, Jains, Sikhs, Zoroastrians, Buddhists and Christians to encourage them to take education loans to pursue higher education abroad.

This program will no longer be available starting April 1, 2022, but those who were already benefiting from it as of March 31, 2022, will continue to receive interest subsidies and a temporary payment freeze on their loans during their loan term. Here are the eligibilities 

• Students who belong to religious minority communities need not pay any sort of interest to their respective lender’s bank during the moratorium period.
• These benefits are only during the moratorium period.
• Only Indian students are eligible for this Scheme.
• Students must have secured admission in Masters, M. Phil, or Ph.D. streams abroad.
• The gross income of the student’s family shouldn’t be more than Rs.6 lakhs per annum.