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Education Loan in Ahmedabad
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Table of content
- Best Education Loan in Ahmedabad
- Education Loan Lenders Interest rate in Ahmedabad
- NBFCs in Ahmedabad for Education Loan
- Common Education Loan Terminology used by Banks or NBFCs in Ahmedabad
- Documents required for availing an Education Loan in Ahmedabad
- Common reasons for Education Loan rejection in Ahmedabad
- How to get education loan from bank in ahmedabad
- Why Choose WeMakeScholars for an Education Loan in Ahmedabad?
- Repayment plan for Education loans in Ahmedabad
- Education loan subsidy schemes applicable to students from Ahmedabad
- FAQ's
- Need Help? Ask Here!
Ahmedabad is a vibrant city in Gujarat, and understanding the options and benefits of education loans in Ahmedabad can greatly benefit aspiring students. In this comprehensive guide, we will explore the various aspects of education loans, eligibility criteria, popular lenders, and essential information to help you make an informed decision.
Typically, students residing in Ahmedabad, require an average of INR 15 lakhs to cover their educational expenses within India. However, if they opt for studying abroad, the amount needed increases to approximately INR 45 lakhs. In the city of Ahmedabad, education loan interest rates vary between 8.5% and 13%, depending on the specific loan type and the lending institution chosen.
Best Education Loan in Ahmedabad
For Studies In India
| Bank Name | Scheme Name | Loan Amount | Processing Fee |
| SBI | SBI Scholar Loan Scheme | 150 Lakhs | 10,000 + GST |
| BOB | Baroda Education Loan to Students of Premier Institutions |
150 Lakhs |
10,000 + GST |
| Karur Vysya Bank | Education Loan Scheme |
150 Lakhs |
10,000 + GST |
| Union Bank | Union Bank India Education Loan |
200 Lakhs |
Zero processing fee |
| Axis Bank | Education loan for study in India |
40 Lakhs without collateral |
A 1-2% fee is added to the loan amount. |
| ICICI Bank | Education loan for study in India |
50 Lakhs without collateral |
A 1-2% fee is added to the loan amount. |
| IDFC First Bank | Education loan for study in India |
50 Lakhs without collateral |
A 1-2% fee is added to the loan amount. |
For Foreign Studies
| Bank name | Scheme name | Loan amount | Processing fee |
| SBI | SBI Scholar Loan Scheme | 150 Lakhs | 10,000 + GST |
| BOB | Baroda Scholar | 150 Lakhs | 10,000 + GST |
| Karur Vysya Bank | Education Loan Scheme | 150 Lakhs | 10,000 + GST |
| Union Bank | Union Bank Abroad Education Loan | 150 Lakhs | A 1-2% fee is added to the loan amount. |
| Axis Bank | Education loan for studying abroad | 40 Lakhs without collateral | A 1-2% fee is added to the loan amount. |
| ICICI Bank | Education loan for studying abroad | 50 Lakhs without collateral | A 1-2% fee is added to the loan amount. |
| IDFC First Bank | Education loan for studying abroad | 40 Lakhs without collateral | A 1-2% fee is added to the loan amount. |
Education Loan Lenders Interest rate in Ahmedabad
For studies in India
| Bank name | Interest rate | Interest rate concession |
| SBI | Starting at 8.20% | 0.50% for female students, 0.50% for Rinn Raksha |
| BOB | Starting at 9.15% | Discount up to 2% |
| Karur Vysya Bank | Starting at 10% | Discount up to 2% |
| Union Bank | Starting at 11.15% | 0.5% for female students 1% if the SI is paid in full |
| Axis Bank | Starting at 11% | Discount up to 2% |
| ICICI Bank | Starting at 10.5% | Discount up to 2% |
| IDFC First Bank | Starting at 8.5% | Discount up to 2% |
NOTE- To check the latest interest rate of all the banks click here
For Foreign Studies
| Bank Name | Interest Rate | Interest Rate Concession |
| SBI | Starting at 10.90% | 0.50% for female students, 0.50% for Rinn Raksha |
| BOB | Starting at 10.40% | Discount up to 2% |
| Karur Vysya Bank | Starting at 10% | Discount up to 2% |
| Union Bank | Starting at 11.15% | 0.5% for female students 1% if the SI is paid in full |
| Axis Bank | Starting at 11% | Discount up to 2% |
| ICICI Bank | Starting at 10.5% | Discount up to 2% |
| IDFC First Bank | Starting at 8.5% | Discount up to 2% |
NOTE- To check the latest interest rate of all the banks click here
NBFCs in Ahmedabad for Education Loan
For Studies In India
| Bank name | Scheme name | Loan amount | Processing fee | Interest rate | Interest rate concession |
| Avanse | Education loan for studying in India | 60 Lakhs | A 1-2% fee is added to the loan amount | Starting at 11% | Discount up to 2% |
| Incred | Education loan for studying in India | 60 Lakhs | A 1-2% fee is added to the loan amount | Starting at 11% | Discount up to 2% |
| Auxilo | Auxilo education loan for studying in India | 60 Lakhs | A 1-2% fee is added to the loan amount | Starting at 11% | Discount up to 2% |
| Credila | Credila education loan for studying in India | 60 Lakhs | A 1-2% fee is added to the loan amount | Starting at 11% | Discount up to 2% |
For Foreign Studies
| Bank name | Scheme name | Loan amount | Processing fee | Interest rate | Interest rate concession |
| Avanse | Education loan for studying abroad | 75 Lakhs | A 1-2% fee is added to the loan amount | Starting at 11% | Discount up to 2% |
| Incred | Education loan for studying abroad | 75 Lakhs | A 1-2% fee is added to the loan amount | Starting at 11% | Discount up to 2% |
| Auxilo | Education loan for studying abroad | 75 Lakhs | A 1-2% fee is added to the loan amount | Starting at 11% | Discount up to 2% |
| Credila | Credila education loan for studying abroad | 75 Lakhs | A 1-2% fee is added to the loan amount | Starting at 11% | Discount up to 2% |
Common Education Loan Terminology used by Banks or NBFCs in Ahmedabad
It is crucial to familiarise yourself with the specific terms referring to education loans when choosing among the offers of banks and NBFCs in Ahmedabad. They determine the amount of the loan and the terms under which you will be able to obtain this amount, the possibility of starting the repayment, and the collateral that will be required. The following is a breakdown of some of the most frequently used education loan terms including; expense coverage, moratorium period, loan margin, and collateral margin. Keep reading to know more about these terms.
Expense Coverage
- Education loans cover not only tuition fees but also various other expenses such as textbooks, study materials, and hostel fees.
- Some lenders extend coverage to include living expenses like accommodation and food, providing a holistic financial solution.
Moratorium Period
- Education loans in Ahmedabad come with a generous moratorium period.
- During this period, borrowers are not required to make any loan repayments.
- The moratorium period typically ranges from 6 to 12 months after the completion of the course, giving borrowers time to settle into their careers and plan their loan repayment strategy.
Loan Margin
- Loan margin represents the borrower's personal contribution as a percentage of the total loan amount.
- For instance, if the loan margin is set at 5%, the borrower is responsible for paying 5% of the loan amount.The remaining 95% is covered by the lender.
- Lenders utilize the loan margin to mitigate their risk in case the borrower is unable to make loan repayments.
Collateral Margin
- In Ahmedabad, education loans may require collateral as a security measure.
- The collateral margin represents a percentage of the loan amount secured by the borrower's assets.
- This provides reassurance to lenders and reduces their risk exposure, ensuring the protection of both borrowers' dreams and lenders' interests.
Documents required for availing an Education Loan in Ahmedabad
An education loan is borrowed to finance the education cost of a person, it is always advisable for a person to be well informed and prepared with the documents required to secure the education loan in Ahmedabad. If you are planning to take an unsecured loan where no kind of security is offered by the borrower or in case of a secured loan where the borrower offers an asset as security some documents are to be produced to verify the identity of the borrower, his creditworthiness and the purpose for which the loan is being taken and more. In this section, we are going to list out the documents to be provided for unsecured and secured loans for the student and co-applicant. Keep reading.
Documents required for Unsecured Loan in Ahmedabad
- Student Documents:
- The applicant is obliged to submit identification documents such as an Aadhar card, PAN card, and passport to establish their identity.
- For the loan application, a mandatory requirement is a letter of admission from a university.
- To verify their residence, the applicant must provide utility bills like electricity and house tax bills.
- Essential academic documents, including transcripts from 10th and 12th grade, as well as degrees or diplomas earned, need to be submitted.
- Language proficiency and academic aptitude can be assessed through scores from exams such as IELTS, TOEFL, GRE, and GMAT.
- In the case of any gaps in the applicant's educational timeline, a gap certificate should be furnished to explain the period of discontinuity.
- If applicable, a letter certifying the applicant's work experience is also necessary to showcase their professional background.
- Co-applicant Documents:
- Apart from confirming the applicant's identity, additional financial documents are required for the loan application process.
- Salaried individuals need to provide the latest 3 months' salary slips, 6 months' bank statements, a company ID, the preceding 2 years' Form 16, and the last 2 years' income tax returns (ITRs).
- For self-employed individuals, the necessary financial documents consist of the past 3 years' ITRs, 6 months' bank statements, a balance sheet, a profit and loss account covering the last 3 years, and proof of the business address.
- Other Documents:
- The submission of a co-applicant's letter, acknowledging their responsibility for any remaining expenses not covered by the loan, is a mandatory requirement. The assigned financial officer will provide a specific format for this letter.
- A comprehensive bank statement, displaying the details of both the student and co-applicant, must be provided.
- For loans intended to cover expenses such as travel or the purchase of a laptop, it is necessary to include an invoice for these items.
- Receipts for any pre-paid transactions should be provided for verification purposes.
- If applicable, the previous year's loan statements need to be included in the application.
- A letter addressing any gaps in employment or income, drafted on a Rs. 100 stamp paper, may be requested.
- In cases where a co-applicant's income tax return is absent, an explanatory letter should be included to provide clarification.
Documents required for Secured Loan in Ahmedabad
- In addition to standard documentation for unsecured loans, a co-applicant may need to provide a basic income certificate if they lack income tax returns. For secured loans, borrowers must submit additional documents as proof of pledged collateral.
Additional Documents for Secured Loans for Ahmedabad
- Proof of ownership for the property offered as collateral, such as a title deed or any relevant property ownership document.
- Documentation of legal agreements associated with the property, including registered sale agreements, gift deeds, or wills that establish the ownership and transfer of the property.
- A letter of allotment issued by a recognized government authority like GIDC (Gujarat Industrial Development Corporation) for industrial or commercial properties.
- Historical records spanning 30 years, demonstrate the transfer of property ownership or a chain of previous sale deeds. This can be accompanied by an extract of the Encumbrance Certificate (EC) as proof.
- The most recent property tax bill and electricity bill, both clearly show the property's address.
- Include a copy of the municipality-approved building plan or plot layout for the property to establish its legality and adherence to regulations.
Common reasons for Education Loan rejection in Ahmedabad
- Low Credit Score: Low credit scores can raise concerns for lenders. Most banks generally look for a CIBIL score of 685 or higher. They also consider the borrower's credit history and prefer to see no major issues like defaulted loans or bounced cheques. Building a strong credit profile or having a co-signer with a good credit background may help overcome this obstacle.
- Lack of Collateral or Guarantor: Secured education loans often require collateral or a qualified guarantor. Failure to provide suitable collateral or a qualified guarantor who meets the lender's requirements can lead to rejection.
- Incomplete or Inaccurate Documentation: Incomplete or inaccurate documentation can result in delays or rejection of your loan application. Ensure that all required documents are provided accurately and in the required format.
- Unapproved Course or Institution: Some lenders have specific criteria for approving education loans, including a list of approved courses and institutions. Make sure your chosen course or institution aligns with the lender's criteria to avoid rejection.
How to get education loan from bank in ahmedabad
To apply for an education loan in Ahmedabad, follow the steps outlined below:
- Initiate a callback request with WeMakeScholars.
- A WeMakeScholars financial officer will contact you and ask basic questions to assess your eligibility for an education loan.
- The officer will then connect you with eligible lenders and provide you with a link to upload your documents.
- Use the provided link to upload your documents.
- Your assigned lender will take the process forward. However, you can contact your financial officer for any issues or confusion during the process.
- You will receive your sanction letter within the promised timeline set by your financial officer.
Note- It is recommended to follow the above process through WeMakeScholars for an education loan, as it ensures a quick loan sanction and attractive interest rates. This is more advantageous compared to approaching the bank directly.
Why Choose WeMakeScholars for an Education Loan in Ahmedabad?
- Expert Guidance: If you are seeking a secured education loan, WeMakeScholars assigns a dedicated financial officer to guide you through the process, providing explanations and expediting the proceedings.
- Rate of Interest Negotiation: When it comes to unsecured loans, the interest rates tend to be higher. However, WeMakeScholars assists in negotiating the interest rate, aiming to secure a rate that is up to 2% lower than the lender's initial quote.
- Government Funding: WeMakeScholars is a government-funded organization under the Digital India Campaign, supported by the Ministry of IT.
- Experience in Complex Cases: WeMakeScholars has extensive experience handling complex cases involving multiple co-applicants. These cases are prioritized to ensure timely processing and approval of education loans. WeMakeScholars takes pride in successfully processing loans for numerous complicated situations.
- No Service Charge: WeMakeScholars provides all its services without any service charge. The support continues until the loan is fully repaid.
- Transparency: WeMakeScholars maintains transparency throughout the application process, providing regular updates and ensuring that you have a thorough understanding of each step.
- Cashback Offered: As an added benefit, WeMakeScholars offers a cashback incentive to students who utilize their platform for applying for a study loan. The cashback, up to a maximum reward of INR 3000, is applied to the first disbursement of the loan.
Repayment plan for Education loans in Ahmedabad
The repayment capacity of the education loan is one of the factors that students and parents must consider while looking at education loans in Ahmedabad. After the period of moratorium, the borrowers are required to start repaying the education loans and sometimes, it is in equal monthly installments. These repayments are made within equal intervals.
For instance, let's consider a student who has borrowed INR 30 lakh at an interest rate of 11.05% over a 10-year period. They would need to adhere to a structured repayment plan, making monthly payments to gradually settle the loan amount.
| Repayment Schedule | EMI | Interest Portion | Loan Outstanding | Principal Portion |
| End of 1st year | 49734 | 31421 | 18312 | 3393972 |
| End of 2nd year | 49734 | 29292 | 20441 | 3160619 |
| End of 3rd year | 49734 | 26916 | 22818 | 2900133 |
| End of 4th year | 49734 | 24262 | 25471 | 2609361 |
| End of 5th year | 49734 | 21301 | 28433 | 2284779 |
| End of 6th year | 49734 | 17995 | 31739 | 1922458 |
| End of 7th year | 49734 | 14305 | 35429 | 1518009 |
| End of 8th year | 49734 | 10185 | 39548 | 1066534 |
| End of 9th year | 49734 | 5587 | 44147 | 562566 |
| End of 10th year | 49734 | 454 | 49280 | 0 |
Education loan subsidy schemes applicable to students from Ahmedabad
The Ministry of Social Justice and Empowerment has introduced a program to reduce the interest burden on education loans for OBC and EBC students during the moratorium period. This initiative provides financial relief to these students during that time.
Dr. Ambedkar Interest Subsidy Scheme
- Targeted Beneficiaries: This scheme is designed to support students belonging to Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) with an annual gross family income not exceeding Rs. 8 lakh and Rs. 5 lakh, respectively.
- Interest Subsidy Coverage: The interest subsidy covers the duration of the course and an additional period of 12 months after completing the program or 6 months after securing employment, whichever is earlier. The scheme provides interest subsidies for loan amounts up to Rs. 20 lakh.
- Course Eligibility: To be eligible for the Dr. Ambedkar Central Sector Scheme of Interest Subsidy for Education Loans, students must enroll in professional or technical courses recognized by NAAC-accredited institutions, NBA-accredited professional technical programs, Institutions of National Importance, or Central Funded Technical Institutions (CFTIs) after completing Class XII.
Padho Pardesh Scheme
- The Ministry of Minority Affairs initiated this program to support individuals from the Economically Weaker Section (EWS) who aspire to pursue higher education abroad. The program aims to provide financial assistance and resources to help these students fulfill their educational aspirations.
Eligibility Criteria for the Padho Pardesh Scheme:
- Loans must be obtained from scheduled banks that comply with the guidelines set by the Indian Banking Association.
- Students must have secured admission into a master's, PhD, or M.Phil program.
- A government-approved income certificate is mandatory.
- The annual family income of the student should be below INR 6 lakh.
Please note- Padho Pardesh scheme, a government-run program, was discontinued on March 31, 2022. However, students who were eligible and registered under the program prior to April 1, 2022, will still be entitled to receive its benefits.
Central Scheme for Interest Subsidy (CSIS)
- Targeted Beneficiaries: This program aims to benefit students from the Economically Weaker Section (EWS) whose parents or families have an annual gross income of up to Rs. 4.5 lakhs.
- Interest Subsidy Coverage: Under the Model Education Loan Scheme of the Indian Banks' Association (IBA), eligible students can receive complete interest subsidies of up to Rs. 10 lakhs on their education loans during the moratorium period.
- Course Eligibility: The scheme supports students pursuing technical and professional courses within India.
FAQs:
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What is the average loan amount required by students in Ahmedabad for education expenses?
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What are the interest rates for education loans in Ahmedabad?
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Which banks provide education loans for studies in India or abroad?
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What is the moratorium period for education loans in Ahmedabad?
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What are the common reasons for education loan rejection in Ahmedabad?
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What is the repayment plan for education loans in Ahmedabad?
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