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Best Education Loan In Aurangabad
✓ Interest Rates in Aurangabad
✓ Loan Amount of Upto 2 Crores
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Table of content
- Top Public and Private Bank for Education Loan in Aurangabad
- Interest Rate of Banks Offering Education Loan in Aurangabad
- List of NBFCs in Aurangabad For Education Loan
- Common Terminology Used by Education Loan Providers in Aurangabad
- Education Loan’s Eligibility Criteria in Aurangabad
- Document Checklist for Obtaining an Education Loan in Aurangabad
- List of Acceptable Collateral in Aurangabad For Education Loans
- Top Colleges for Higher Studies in Aurangabad
- Repayment Plan for Education Loans in Aurangabad
- How to Get Education Loan From Bank in Aurangabad
- Key Reasons to Choose WeMakeScholars For Education Loan in Aurangabad
- FAQ's
- Need Help? Ask Here!
Aurangabad has many financial institutions that provide education loans to motivate students to pursue higher education which include government banks and private lenders. In addition to traditional banks, Non-Banking Financial Corporations (NBFCs) also contribute to the distribution of these loans.
These institutions provide various schemes for acquiring funds to support academic ambitions, both domestically and internationally. These loans are tailored to meet the specific needs of individual students and undergo evaluation based on a variety of criteria when seeking financial aid through an education loan.
A crucial element when it comes to education loans is the interest rate, which typically ranges from 8.5% to 13%, it depends on factors such as the chosen field of study and the intended destination for further studies.
Top Public and Private Bank for Education Loan in Aurangabad
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. |
Interest Rate of Banks Offering Education Loan in Aurangabad
For Studies in India
| Bank name | Interest rate | Interest rate concession |
| SBI | Starting at 8.20% |
|
| BOB | Starting at 9.15% | Discount up to 2% |
| Karur Vysya Bank | Starting at 10% | Discount up to 2% |
| 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% |
|
| 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% |
|
| 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
List of NBFCs in Aurangabad 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% |
NOTE- To check the latest interest rate of all the banks click here
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% |
NOTE- To check the latest interest rate of all the banks click here
Common Terminology Used by Education Loan Providers in Aurangabad
- Principal Amount and Interest Rates: The initial sum you borrow is referred to as the principal amount, and lenders determine the interest rates, which can remain unchanged or be subject to change later on. Repaying the loan involves returning both the principal and the interest within a specified timeframe in accordance with the loan terms.
- Moratorium Period or Grace Period: After completing your education, there exists a grace period, typically spanning from 6 months to a year, during which you aren't obligated to begin repaying the loan. It's important to be aware that interest may accumulate during this period, potentially leading to an increase in the total amount owed due to the absence of payments.
- Secured Loan and Co-applicants: Lenders might ask for assets such as property, fixed deposits, or government bonds to be used as collateral for the loan. These assets serve as a safeguard for lenders in case you are unable to repay the loan. Additionally, you have the option to involve a co-applicant, often a parent or guardian, who shares the responsibility for loan repayment., thereby enhancing the likelihood of loan approval.
- EMI and Processing Fee: In each payment cycle, you are required to make an Equated Monthly Installment (EMI), a predetermined payment that covers both the main loan amount and a portion of the interest. Moreover, when applying for a loan, lenders could impose a processing fee, a one-time payment intended to cover the costs associated with processing your loan application.
- Credit Rating/CIBIL Score: The approval of your loan can depend on your credit rating, a numeric representation of your financial management history. Higher scores, usually falling within the range of 300 to 900, indicate responsible past loan repayments. This can lead to lower interest rates and an increased likelihood of loan approval.
- Margin Money and Collateral Margin: Lenders may request a portion of your own funds (typically between 0% and 20% of the total course cost) to be contributed to the loan, known as margin money, which reflects your dedication. In specific cases, there might also be a collateral margin, where a fraction of the loan amount is backed by the collateral you've pledged (varying from 0% to 25%).
Education Loan’s Eligibility Criteria in Aurangabad
- Eligibility Based on Age: To be eligible for an educational loan in Aurangabad, your age must fall within the range of 18 to 35 years. If your age falls within this designated span, you are eligible to apply for an education loan to cover the expenses associated with your higher education.
- Academic Performance: When applying for an education loan, it is crucial to showcase a strong academic background. This involves meeting the minimum educational criteria set by the university or program you intend to enrol in. By fulfilling these requirements, you demonstrate your readiness to excel academically.
- Confirming Admission: A crucial step in obtaining loan approval involves confirming your acceptance into a recognized educational institution. This confirmation serves as evidence of your dedication to pursuing higher education, thereby enhancing the strength of your application for financial support.
- Citizenship and Residency: Education loans in Aurangabad are exclusively available to Indian citizens or individuals with valid proof of residency. This ensures that loans are extended only to those who meet the necessary qualifications and possess the appropriate authorization to pursue studies within the country or abroad.
- Financial Background of Co-Applicant/Applicants: If you choose to have a co-applicant, such as a parent, their financial background carries significance. A favorable credit score underscores their financial dependability, which in turn positively influences the outcome of your loan application.
- Courses and Universities with Approval: Choosing courses and universities that hold official recognition and accreditation is of utmost importance. This assurance guarantees that the education you receive adheres to established standards, ensuring a high-quality learning experience.
- Submission of Required Documents: Much like any loan application, submitting the required documents is crucial. WeMakeScholars will provide you with a comprehensive list of the necessary documents. This helps you in meeting the lender's conditions, simplifying the process of applying for an education loan for your convenience.
Document Checklist for Obtaining an Education Loan in Aurangabad
This section deals with the basic documents needed to secure an education loan in Aurangabad. It also has a comprehensive checklist for the students where they are required to attach important documents like acceptance letters from the university, transcripts of the previous years, and identification proof and residence proof. Co-applicants are going to learn about the identification, financial statements, and related persons to the main applicant. The section describes the documents that are required to prove the ownership of the property, evaluate the security, and check the assignment of the land for the secured loans. This guide assists in avoiding misunderstandings during the loan application by outlining all the documents required.
Student Document Checklist
- University's Formal Acceptance: This pertains to the official letter of acceptance received from the university, confirming your successful enrollment in your chosen course.
- Academic Records: These documents provide an overview of your academic history, encompassing school transcripts, certificates, and other relevant materials showcasing your academic progression and achievements.
Understanding Costs
- Detailed Fee Breakdown: An in-depth breakdown that outlines the various expenses tied to your education. This comprehensive list includes items like tuition fees, examination charges, accommodation expenses, and any other pertinent fees during your university tenure.
Verification of Age and Identity
- Age Verification: The process of confirming your compliance with the specified age criteria for your chosen course. This typically involves submitting official documents like a birth certificate or passport indicating your date of birth.
- Proof of Identity: Establishing your identity is crucial for administrative and security purposes. This necessitates providing recognized identification documents such as Aadhaar card, PAN card, passport, or driver's license.
- Passport Photos: Small-sized photographs adhering to specific guidelines, used for identification purposes, such as for university ID cards or official documentation.
Valid Test Scores
- Test Scores: Universities frequently require standardized test scores to assess your skills and abilities. For instance, if you're applying for an international program and English isn't your native language, scores from exams like IELTS or TOEFL might be necessary to understand your language proficiency. Similarly, exams like GRE or GMAT evaluate readiness for advanced studies.
Confirmation of Address
- Residence Validation: Your current address is pivotal for communication and administrative purposes. Documents like Aadhaar cards, voter IDs, utility bills, or rental agreements serve to verify your place of residence, ensuring effective communication.
Co-applicant Document Checklist
Confirming Identities
- Co-applicant's Identification: If a co-applicant (e.g., a family member) supports your application, their identity must also be verified. Similar to the primary applicant, official identification documents like Aadhaar cards, PAN cards, or passports are required.
- Address Confirmation: Similar to your own address verification, the co-applicant's address must also be validated to facilitate accurate communication.
- Co-applicant Photographs: Recent photographs of co-applicants are essential for identification purposes, ensuring accurate association with the application.
Financial Validation
- Income Documentation: To establish the co-applicant's financial capability to support your education, documents like 3-month salary slips, 2-3 years of Income Tax Returns, or 6-month bank statements are essential. These documents demonstrate financial stability and the capacity to contribute.
- Relationship Confirmation: If the co-applicant is a family member (e.g., parent), providing documents affirming the relationship is necessary. This could involve birth certificates or legal affidavits confirming the family connection.
Secured Education Loan Document Checklist
Authentication of Property
- Proof of Ownership: If a property is offered as collateral, documents validating legal ownership are necessary, ensuring the property's eligibility as loan security.
- Checking for Claims: A certificate that confirms no legal or financial issues are attached to the property ensures its clear status.
- Title Deed: A crucial legal document validating ownership rights over the property, serving as an official record of ownership.
Property Valuation - Valuation Report: This report assesses the market value of the collateral property, assisting the lender in determining its value for the loan.
- Society/Association Approval: If the property belongs to a housing society or association, obtaining their consent to use it as collateral is essential to ensure all parties are informed.
- Confirmation of Land Ownership: Documents confirming lawful ownership of the land where the collateral property is located establish its legitimacy.
- Possession Certificate: This document affirms your control and possession of the property, establishing your rightful ownership and collateral eligibility.
- Aurangabad Allocation Letter: If the property is situated in Aurangabad, an official allocation letter from relevant authorities validates the property's location and allocation status within the area.
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List of Acceptable Collateral in Aurangabad For Education Loans
- Your House: If you happen to possess a residence, like a house or an apartment, you can use it as collateral for your educational loan. It's of utmost importance that your property has clear and indisputable ownership documents and is devoid of any legal complexities. This simplifies the process.
- Commercial property: Much like residential properties, if you are the owner of a shop or an office space, you can likewise utilize it as collateral. You need to verify your ownership and adhere to all the legal prerequisites.
- Fixed Deposits: If you have invested your funds in a fixed deposit at a bank, this can also be used as collateral. The bank can offer you a loan based on a portion of the deposit, and sometimes even the entire amount. This widens your financial options.
- Life Insurance: If you hold a life insurance policy, the potential amount accessible upon its cancellation can serve as security for your education loan. The lender typically determines the loan amount based on a fraction of the policy's value.
- Government Bonds: Special types of certificates that can be purchased from the government, such as National Savings Bonds, can also be harnessed to secure your education loan. Utilizing these bonds can foster confidence in pursuing your educational goals.
- Land or Farm Assets: If you happen to own land or a farm, these assets can also be employed to obtain an education loan, provided they meet the lender's criteria and are free from legal complications. These avenues offer additional ways to ensure you have the necessary finances for your academic pursuits.
Top Colleges for Higher Studies in Aurangabad
- Institute of Hotel Management, Aurangabad
- Government Medical College and Hospital, Aurangabad
- Marathwada Institute of Management and Research - [MIMR], Aurangabad
- Deogiri Institute of Engineering and Management Studies - [DIEMS], Aurangabad
- Dr Babasaheb Ambedkar Marathwada University - [BAMU], Aurangabad
- Shri Sai Institute Of Management & Research - [SSIMR], Aurangabad
- Shreeyash Institute of Management - [SIM], Aurangabad
- Maulana Azad College, Aurangabad
- MGM University - [MGMU], Aurangabad
- Maharashtra Institute of Technology - [MIT], Aurangabad
Repayment Plan for Education Loans in Aurangabad
Here's a simple example of your situation: You borrowed Rs. 38,00,000 for education at a 10.5% interest rate. No payments while studying. The repayment tenure is 11 years. After that, you'll pay back the total in monthly installments, covering both the borrowed money and added interest.
- EMI monthly: 51,508
- Total Payment: 86,53,294
- Total Interest Payable: 48,53,294
| Repayment | EMI | Interest portion | Principal portion | Loan Outstanding |
| End of 1st year | 51215 | 29413 | 21801 | 4130683 |
| End of 2nd year | 51215 | 27486 | 23728 | 3856706 |
| End of 3rd year | 51215 | 25389 | 25826 | 3558511 |
| End of 4th year | 51215 | 23106 | 28108 | 3233960 |
| End of 5th year | 51215 | 20622 | 30593 | 2880720 |
| End of 6th year | 51215 | 17918 | 33297 | 2496258 |
| End of 7th year | 51215 | 14975 | 36240 | 2077813 |
| End of 8th year | 51215 | 11771 | 39443 | 1622380 |
| End of 9th year | 51215 | 8285 | 42930 | 1126692 |
| End of 10th year | 51215 | 4490 | 46724 | 587190 |
| End of 11th year | 51215 | 360 | 50854 | 0 |
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How to Get Education Loan From Bank in Aurangabad
- Fill in the application form: To embark on your journey towards securing an education loan, start by completing the application form provided by the team of financial officers at WeMakeScholars.
- Profile evaluation by our financial officers: Once you've submitted your application, our financial officers will reach out to you. They will assess your eligibility for the education loan by asking relevant questions.
- Connecting with Lenders: Upon confirming your eligibility, our financial officers will assist you in connecting with suitable loan providers. You will be provided with a secure link that simplifies the process of uploading all the necessary documents.
- Effortless Document Submission: Through the use of the secure link, you can easily submit all the required documents, ensuring a seamless process and reducing unnecessary complications.
- Guidance from the Lender: The lender you are matched with will guide you through the application procedure. Your financial expert will also be at your disposal to address any inquiries or uncertainties you may have.
- Prompt Approval Letter: Anticipate receiving the approval letter within the timeframe pledged by our financial officer.
Key Reasons to Choose WeMakeScholars For Education Loan in Aurangabad
- Expertise in dealing with education loans: Our financial officers specialize in providing students with solutions to dealing with issues faced during the education loan process. We possess a thorough understanding of various study destinations and academic programs, enabling us to help you in assessing your financial needs.
- Wide Range of Lenders: Through collaboration with more than 14 banks, consisting of both private and government banks, we can present a diverse spectrum of options which you can avail education loans from. This extensive network helps you to compare loans based on factors such as interest rates and repayment terms, granting you the ability to choose the most suitable option for your requirements.
- Effortless Application Procedure: Our foremost objective is to streamline the process of applying for an education loan. Using our user-friendly online platform, we ensure a smooth application journey that conserves your time and energy.
- Transparent Assistance: Our commitment to transparency persists throughout your education loan journey. We ensure your comprehensive understanding of important factors regarding education loans such as interest rates, fees, and the repayment schedule. If you have any doubts regarding the process, our Financial Officers are readily accessible to provide guidance.
- No Hidden Fees: At WeMakeScholars, no additional charges are imposed for our services. Because we are funded by the Ministry of IT, Government of India, we are enabled to offer a more accessible and cost-effective loan process.
- Guidance on Tax Benefits: We comprehend that navigating the complexities of taxes and their implications on your finances can be challenging. Our financial officers elucidate how education loans can lead to tax advantages, particularly under sections 80E and 80C.
- Special Bonus: Upon securing an education loan through WeMakeScholars, you will be eligible to receive a cashback of Rs 3000.
FAQs:
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Can I get an education loan in Aurangabad if my credit score is not high?
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Are there special loan schemes in Aurangabad for students with financial difficulties?
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Are there education loan options in Aurangabad for those planning to study abroad?
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What are the interest rate ranges for education loans available in Aurangabad?
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Can I get an education loan in Aurangabad if I've already started my course?
Abhinav Raj
WeMakeScholars- supported by IT Ministry, Govt. of India.
WeMakeScholars- supported by IT Ministry, Govt. of India.
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