Education Loan in Jaipur

If you are a resident of Jaipur and are considering furthering your education in India or another country, this article may be useful to you. Typically, the cost of studying in India can reach up to 15 Lakhs, while studying abroad can cost up to 45 Lakhs. The interest rate for education loans can vary between 8.30% and 13.5% depending on the lender you choose.

For studies in India

For Foreign studies

For studies in India

For Foreign studies

Expenses covered

An education loan is a financial aid that helps students cover the costs associated with pursuing their studies, whether it be in India or abroad. The education loans offered by lenders in Jaipur can be used to pay for a wide range of expenses, including but not limited to

• College fees
• The cost of accommodation
• Examination charges 
• Library charges
• Laboratory fees
• Price of Books
• Airfare (For abroad education)
• The premium for the applicant's insurance (For abroad education)

Moratorium Period

In Jaipur, many banks, both public and private, as well as non-banking financial companies (NBFCs) offer education loans, with moratorium periods that vary depending on the lender. Typically, the moratorium period lasts for the duration of the course, plus an additional 6 months to 1 year. However, the terms and conditions of loan repayment can vary between different financial institutions.

Loan Margin

Loan margin, also known as margin requirement, is the percentage of the total loan amount that the borrower must pay upfront before the loan is disbursed. This is a requirement by the lender to ensure that the borrower has some stake in the loan. The margin charged for an education loan can vary between different types of financial institutions and loan products. Generally, public banks charge a loan margin of around 10%, whereas private banks charge a margin of 5% to 10%.

For instance, if a bank charges a loan margin of 10% and the loan amount is 50 Lakhs, the student would have to provide 5 Lakhs as a margin amount before the loan can be approved and disbursed. This means that the student would have to have 5 Lakhs in cash or in other forms of liquid assets that they can pledge as collateral to the bank. 

Collateral Margin

Collateral margin is a percentage of the value of the collateral that is required by the lender when the loan is secured or collateralized. The collateral margin is calculated based on the value of the collateral provided as security.

For example, if a bank requires a collateral margin of 20% and the collateral pledged is worth 50 Lakhs, the bank would then approve a loan of 40 Lakhs. In case the borrower is unable to repay the loan, the bank can then reclaim the amount by utilizing the property or collateral provided for the secured loan. This is why it is important for the borrower to provide collateral that is of high value or liquidity to ensure they get the maximum loan amount they can get.

The paperwork or the document checklist required to get an education loan in Jaipur is mentioned below. 

Collateral documents required for a secured education loan in Jaipur

When applying for a secured loan, you will need to submit collateral documents for the property you are using as collateral. The specific collateral documents required for an education loan in Jaipur are listed.

1. The pledged property's title deed

2. A will, a sale contract, or a gift deed that has been registered.

3. The original receipt for registration of the above-mentioned agreement.

4. The letter of allocation from the municipal corporation or the relevant approved government agency, such as Jaipur municipal corporation 

5. A 30-year-old document or an EC or a preceding chain of sale deed establishing title is required. It is a 30-year record of who acquired the property in the 30-year period before from whom. If you have held the property for more than 30 years, the preceding sale paperwork will do.

6. Current property tax and power bills coming from the same address

Acceptable collaterals in Jaipur for education loans

In order to obtain a secured education loan, certain conditions and restrictions apply regarding the types of collateral that can be accepted. Generally, the following assets are accepted as collateral for secured education loans in Jaipur:

• House, apartment, or non-agricultural land that is clearly defined by boundaries
• Properties that are used for commercial purposes
• Agricultural land
• Financial assets such as fixed deposits, insurance policies, and government bonds.

When students try to apply for an education loan by directly contacting banks or lenders, they may be denied. There are several specific reasons why students in Jaipur may be rejected for an education loan.

• Poor CIBIL scores: Loan applications may be denied if the financial co-applicants CIBIL score does not meet the bank's requirements. Banks usually require a minimum CIBIL score of 685, but SBI may accept scores as low as 591.
• Poor academic scores: If the applicant has a history of poor academic performance, it may negatively impact their chances of obtaining the loan.
• Chosen country for higher studies: Banks generally do not approve loans for higher education in developing countries.
• Chosen course for higher studies: Banks generally prefer STEM courses over other fields of study, as the employability prospects are higher for STEM graduates.
• Insufficient documentation: Without the necessary documentation, banks cannot begin the process of approving an education loan for studying abroad. Therefore, it is important to provide the proper documentation and income proofs to be considered for an overseas education loan.

• Direct engagement with lenders -You can reach out to the lender directly by getting the contact information for the person handling your case from the lender's team.
• Negotiation -  The team at WMS will work to get the best deal for you by negotiating with the lenders on your behalf (Upto 2% lesser ROI). We ensure you are charged a fair price for the entire process, including legal fees and other expenses. education Loan Management WMS. 
• Cashback - Additionally, if you apply for your study abroad education loan through WeMakeScholars, you will be supporting the Digital India campaign. You can receive a cashback of up to INR 3000 for multiple disbursements.
• No hidden charges: WeMakeScholars ensures that there are no hidden charges or processing fees associated with the loans. This makes it easier for students to plan their finances and make informed decisions.

Your amortization plan might be like this, for instance, if you took out a 25.5 lakh unsecured education loan from Jaipur at a rate of interest of 9% with a grace period of 6 months and a repayment duration of 12 years.

• Monthly EMI: 33,737
• Total payment: 48,58,173
• Total payable interest: 23,08,173

Padho Pardesh Scheme

Eligibility:

• The applicant is a member of a religious minority (Muslim, Christian, Sikh, Buddhist, Jain, Zoroastrian) and has an annual family income of fewer than 6 lakhs.

Note: The Padho Pardesh Scheme is no longer in effect as of April 1, 2022. However, as of March 31, 2022, the previous beneficiaries will continue to receive the interest subsidies during the loan's term and its moratorium period.

Central Scheme for Interest Subsidy for Economically Weaker Sections

Eligibility:

• The household income of the applicant is less than 4.5 lakhs.

Dr. Ambedkar Central Sector Scheme

Eligibility:

• The applicant comes from a financially underprivileged class, and their total annual family income is less than 8 lakhs.
• The applicant is from the OBC class, and their family makes less than 8 lakhs per year.

Numerous well-known institutions in Jaipur provide courses that range from engineering to medicine and arts. Below are a few of the top institutions.  

• Malaviya National Institute of Technology Jaipur
• University of Rajasthan
• JECRC University
• The LNM Institute of Information Technology
• TAPMI School of Business, Manipal University Jaipur
• Jaipur National University