Education Loan in Pune

Students living in Pune can apply for education loans of upto 1.5 Cr to study anywhere in India and the world, from public banks, private banks, and NBFCs at interest rates starting from @8.30%

Pune is regarded as one of the most advanced cities in India from where ambitious students fly to study abroad in countries like the USA, the UK, Canada, Australia, and many others, to make their careers bright and successful.

Here are the education loan banks in Pune that provide funds for their higher studies in India and abroad

For studies in India

For Foreign studies

Here is a table of interest rates offered by the best bank for education loans in Pune with interest rate concessions, go through the table to choose and decide your lender. 

For studies in India

For Foreign studies

Covered Expenses

Students availing an education loan from banks or NBFCs in Pune are covered for the following expenses

• Course Fees
• Accommodation and hostel fees
• Cost of books and stationeries
• Cost of traveling (air tickets, if the student is going abroad)
• Food and mess expenses
• Project cost, uniform cost, and cost of thesis work
• Computer purchasing cost 

All other study-related expenses those made within the study duration in India or abroad will also be covered in the education loan, provided the student gives proper proof of expenses.

Moratorium Period

Moratorium period or repayment holiday is the time period after the loan is disbursed, in which the student does not have to start repaying the loan. Generally, the moratorium period is the duration of the course plus 6 months or 1 year depending on the bank and type of education loan. 

Loan Margin

Applicants do not get the entire asked loan amount as an education loan, there is a loan margin in every bank. Loan margin is a portion of the entire loan amount which is calculated percentage-wise, the borrower has to arrange by themselves and show it to the bank to get the rest as an education loan from the banks. 

By keeping a loan margin, banks usually check the paying capacity of the borrower

Generally,

• There is a loan margin of 5%, to study in India
• There is a loan margin of 15%, to study abroad

The loan margin amount depends on the place where you are planning to study and also on the education loan type.

Collateral Margin

There are mainly 2 types of collateral that students can pledge with banks to study in India or abroad, immovable properties and movable or liquid securities pledged in the bank.

The collateral margin is a percentage of the value of the pledged collateral up to which a loan can be offered to the applicant. Depending on the type of collateral, banks have different percentages set for each type of collateral on which it provides education loans. 

Public banks like the State Bank of India offer an education loan of value up to 100% value of the immovable property as collateral, while others offer an education loan of value up to 100% of the liquid security, depending on the type of liquid collateral. Ask your financial officer at WeMakescholars to know the exact loan amount that can be offered to you for your collateral security.

The banks ask for specific information with proofs and documents to verify and process a student's loan profile. To apply for an education loan in Pune, students will need to submit the following documents:

Section 1: Application form with 2 Photographs

Completely filled education loan application form with 2 passport-size photographs is mandatorily required. Hardcopy of the form filled out online through the WeMakeScholars website is also acceptable. 

Section 2: Applicant, co-applicant, and/or guarantor’s basic information

1. Proof of identity

• PAN Card
• Aadhar card 
• Student’s passport

2. Address Proof (in case present and permanent address are the same, then the student will have to submit 2 different residence proof documents)

• Ration card
• Electricity Bill
• Voter ID Card
• Telephone Bill
• Aadhaar card
• Bank passbook statement

3. Documents of co-applicant 

• If the co-applicant is salaried they need to provide the last 6 month’s bank statement
• If the co-applicant is self-employed they will have to show their business transactions of the last 1 year

4. Statement of assets and liabilities approved by the bank employees

Section 3: Academic documents of applicant

• Proof of admission of a student in the eligible university or course
• The total course fees in writing with payment deadlines
• Proof of clearing IELTS/ GRE / GMAT or whichever applicable examination
• Academic mark sheet of class 10th, 12th, and bachelor

Section 4: Income proof documents of financial co-applicants 

If Salaried

• Salary slips of last 3 months 
• Last 2 years ITRs
• Last 2 years' details of Form 16
• Office ID card of the applicant

If Self-employed

• Last 3 years' Income Tax Returns
• The balance sheet of the last 3 years showing profit and loss statements. 
• Proof of address of the business

Section 5: Other Documents

• A declaration from the co-borrower of the loan, mentioning that they will take care of all other expenses that are not covered in the education loan
• Student and co-applicant must also provide a joint affidavit to the bank in their prescribed format

Section 6: Additional docs (if applicable)

• If there is any payment made in the name of the university, then payment receipts will be required
• Pending loan statement of last 1 year
• Students' gap certificate on 100 Rs stamp paper giving out the reason for gap in academics

Acceptable collaterals in Pune for education loans

• FD, Insurance policy, Government bonds
• House, Flat, in residential areas with all required documents
• Commercial properties 
• Agricultural land 

Students are required to submit the below-mentioned necessary immovable collateral documents in the bank along with the usual collateral documents:

• Receipts of payment done to the builder or seller
• An analysis report of the structure of the property will also be required if the property is very old
• A share certificate will be required if the property is a resale property
• A NOC from society management or builder in said format
• Power of attorney confirmation from the builder
• Property's conveyance deed
• If the property is new then a commencement certificate (CC) will be required

To apply for a collateralized education loan in Pune, the above-mentioned documents will be required. However, the requirements of documents vary from state to state. Get in touch with your financial officer who has the most accurate list of required documents. Speak to your financial officer who will give you a detailed documents checklist.

Banks have highly strict standards and requirements for providing student loans; if there is a mistake in even one document, your loan may be refused. Here are a few frequent grounds for Pune student loan denials:

• The pagdi system's properties cannot be used as collateral.
• It is prohibited to pledge real estate that the government has provided to slum residents for rehabilitation.
• It is unacceptable if the MHADA land is less than ten years old.
• Generally, government banks in Pune would not take flats or homes without occupancy certificates as security, but we may try with the certificate of ownership and property tax invoice.
• An official letter from the lender to the CIDCO authorities, a letter from CIDCO, two affidavits, and a letter in favor of CIDCO are all necessary for CIDCO properties in Pune. Association formation is not approved. Builder NOC is necessary if the transfer deed is missing; if it is present and available, CIDCO NOC is required.

Any of the aforementioned requirements should be included in your loan application to avoid having it refused. Start your loan procedure with WeMakeScholars to prevent loan application rejection and move forward easily with your loan application.

WeMakeScholars is a government-funded student website that aims to support students in Pune and throughout India to find financing options for their further studies anywhere in the country or even outside. In India, we have partnerships with more than 14 public and private banks as well as NBFCs. These additional arguments support your decision to work with WeMakeScholars for your student loan needs:

Expert advice: After carefully examining your loan profile from all sides, your financial officer will assist you in selecting the best lenders based on bank regulations and your eligibility.

Less processing time: WeMakeScholars processes student loans in half the time that banks normally do. If you receive your loan from a private bank or NBFC, it will take us just 6-7 days; if you obtain it from a public bank with security, it would take us 15-20 days.

Better Interest Rates: As the bank's largest partner for education loans, we give everyone an interest rate reduction ranging from 0.5% to 2%.

Digitization of the application process: Students may quickly submit an online application for a student loan at any time and from any location. Our documentation site also lessens the hassle of making multiple journeys to the banks just to give in the required paperwork.

Tax benefits: We help you save money and receive tax benefits on your tuition fee by informing you about the income-tax dept's tax-saving initiatives, like Section 80E, 80C, and many others, in addition to the tax collected at source (TCS).

Support and negotiation: We provide assistance in discussing loan conditions and rates of interest with the banks to ensure that the procedure is straightforward for you.

End-to-end assistance: If you encounter any post-sanction issues, your financial officer will be available for you at all times, including when the loan is distributed.

Complimentary services: As a component of the Digital India Campaign, we get support from the IT Ministry for granting student loans totally free of cost.

Cashback offer: A cashback of Rs 3000 will be given to you upon your loan disbursement

For example, when a student takes an education loan of Rs 50 lacs at an interest rate of 10% for a tenure of 12 years, then the student will have to repay the loan as per the following amortization schedule:

Central Government Interest Subsidy Scheme (CSIS)

The program, which provides eligible students with a reduction in interest on school loans totaling up to 7.5 lacs, was created and is administered by the Indian national govt. However, the total loan amount may be greater than 7.5 lacs.

CSIS eligibility requirements

• Only Indian students may apply.
• Just for studying abroad for Indians
• Students must have a household income of fewer than 4.5 lacs and be members of an economically deprived category.

Padho Pardesh Scheme

An education loan interest reimbursement of a maximum of 7.5 lacs is available through this scheme to eligible students from India's recognized minority communities who are also EWS candidates for their overseas studies. However, the number of loans might be higher.

Qualifications for the Padho Pardesh Scheme

• Only Indian students may apply.
• Only for programs of overseas study
• Annual family income of students should not be more than Rs 6 lacs per annum

Note: Students will continue to get subsidy benefits if they applied for interest subsidy benefits under this plan before 1 April 2022. Due to the government's decision to end this program on March 31, 2022.

Dr. Ambedkar Central Sector Scheme of Interest Subsidy 

For students who qualify for Dr. Ambedkar's interest subsidy program, there is no interest to be paid on education loans up to 7.5 lacs.

Eligibility criteria for Dr. Ambedkar's interest subsidy scheme

• A Cast certificate is mandatory
• The family income of the applicant should be less than Rs 8 lacs per annum
• An income certificate will be required
• Students must have taken admitted abroad in a Master, MPhil, or PhD

Pune is emerging as a new educational hub among all the major cities of India. Few of the best higher education institutes in Pune are:

• Savitribai Phule Pune University
• Symbiosis International University
• Indian Institute of Science Education and Research, Pune
• Bharati Vidyapeeth University
• College of Engineering Pune Technological University
• Dr. D. Y. Patil Vidyapeeth Pune
• FLAME Foundation for Liberal and Management Education
• Gokhale Institute of Politics and Economics
• Deccan College Post-Graduate and Research Institute
• MIT World Peace University