Education Loan in Varanasi

Varanasi is home to numerous financial institutions that play a crucial role in inspiring students to pursue higher education. These institutions offer various approaches for obtaining funds to support academic aspirations within India or abroad. Designed for individual student requirements, these loans undergo assessment based on diverse criteria when seeking financial assistance.

A critical aspect of these educational loans is referred to as the interest rate. This rate typically falls within the range of 8.5% to 13%, depending on factors like the chosen field of study and the intended educational destination.

Diverse banks operating in Varanasi extend educational loans, with some being government-owned and others privately held. Alongside traditional banks, Non-Banking Financial Corporations (NBFCs) also contribute to disbursing these loans. This diverse array of options empowers students to select the most suitable financial solution, instilling confidence as they embark on their educational journeys.

Top Public and Private Bank for Education Loan in Varanasi

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 Varanasi

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%
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

List of NBFCs in Varanasi 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 Varanasi

Principal Amount and Interest Rates: When you borrow money, the total amount you receive is called the principal amount. In addition to this, the lenders determine the interest rates, which can either stay the same or change later on. As you pay back the loan, you're returning both the principal and the interest, and you have to do this within a set time according to the loan conditions.
Moratorium Period or Grace Period: After you finish your studies, there's a grace time, usually between 6 months to a year, when you don't have to start repaying the loan. However, it's important to know that depending on the loan terms, interest might build up during this time. This means that even though you're not making payments, the total amount you owe could actually increase.
Secured Loan and Co-applicants: Sometimes, lenders might ask you to provide assets like property, fixed deposits, or government bonds as a guarantee for the loan. These act as a backup plan for the lenders if you're not able to repay the loan. Moreover, you can involve a co-applicant, often a parent or guardian, when applying for the loan. Their participation shares the responsibility of repayment, which can make lenders more comfortable with approving the loan.
EMI and Processing Fee: In each payment cycle, you need to make an Equated Monthly Installment (EMI), which is a fixed amount covering both the main loan and a part of the interest. Additionally, when you apply for a loan, lenders might ask for a processing fee. This one-time payment helps cover the costs of handling your loan application.
Credit Rating/CIBIL Score: Whether or not your loan gets approved can rely on your credit rating, which is a number that represents how you've managed your finances. Higher scores, which usually range from 300 to 900, indicate that you've been responsible with repaying loans before. This can lead to lower interest rates and a higher chance of getting the loan approved.
Margin Money and Collateral Margin: Sometimes, lenders might want you to put in some of your own money (usually around 0% to 20% of the total course cost) toward the loan. This is your margin money, showing your commitment. In certain cases, there could also be a collateral margin. This means a part of the loan amount is backed by the collateral you've promised (ranging from 0% to 25%).

Education Loan’s Eligibility Criteria in Varanasi

Qualification Based on Age:
To be eligible for an education loan in Varanasi, your age should be between 18 and 35 years. If your age falls within this range, you can apply for financial support to cover your education expenses.
Academic Performance Requirement:
When applying for an education loan, it's important to show a strong academic history. This means meeting the minimum educational standards set by the university or course you wish to join. By meeting these standards, you demonstrate your readiness for academic success.
Significance of Admission Confirmation:
An important step in getting loan approval is confirming your admission to a recognized educational institution. This confirmation acts as evidence that you are dedicated to pursuing higher education, enhancing your application for financial aid.
Citizenship and Residency Criteria:
Education loans in Varanasi are specifically for Indian citizens or individuals with valid residence proof. This ensures that loans are offered to those who are eligible and have the necessary authorization to study within the country or abroad.
Co-Applicant's/ Applicants Financial Background:
If you choose to have a co-applicant, like a parent, their financial background matters. A good credit score shows their financial reliability, which positively affects the success of your loan application.
Approved Courses and Universities:
It's important to pick courses and universities that are officially recognized and accredited. This guarantees that the education you receive meets established standards and ensures a high-quality learning experience.
Submission of Required Documents:
Just like any loan application, providing the necessary documents is vital. WeMakeScholars will give you a clear list of required documents. This helps you meet the lender's conditions, simplifying the education loan application process for your convenience.

Document Checklist for Availing Education Loan in Varanasi

The following is the documentation required for an education loan in Varanasi: It also gives students a clear checklist that includes university acceptance letters, transcripts, and other relevant documents including identification and residential proof. The applicant and co-applicants will be able to find the details on the identification required, financial proof, and relationship evidence. In the case of secured loans, the section outlines the documents required to support the ownership of property and to evaluate the security. The guide is meant to assist the applicants in determining the peculiar documents required for a successful loan application in Varanasi.

Student Document Checklist

Starting Your Studies:

University's Formal Acceptance: This is the official letter or communication you receive from the university stating that you have been successfully admitted to the course you applied for.
Academic Records: These are the documents that give a clear picture of your educational background. They include your school transcripts, certificates, and any other relevant papers that showcase your academic journey and achievements.

Understanding Costs:

Fee Breakdown: This is a breakdown that provides a detailed view of all the costs associated with your education. It includes a comprehensive list of expenses such as tuition fees (the cost of the courses), examination charges, hostel or accommodation fees, and any other fees that might be required during your time at the university.

Age and Identity:

Age Verification: This is the process of confirming that you meet the required age criteria for the course. You typically need to provide official documents like your birth certificate or passport that clearly state your date of birth.
Identity Proof: Establishing your identity is crucial for administrative and security reasons. To do this, you'll need to provide official identification documents such as your Aadhaar card, PAN card, passport, or driver's license.
Passport Photos: These are small-sized photographs of you that adhere to specific guidelines. They are commonly used for identification purposes, like on your university ID card or other official documents.

Showing Skills:

Test Scores: Universities often require scores from standardized tests as a way to assess your skills and abilities. For example, if you're applying for an international program and English is not your first language, you might need to provide scores from exams like IELTS or TOEFL that measure your language proficiency. Similarly, exams like GRE or GMAT assess your readiness for advanced academic studies.

Confirming Address:

Residence Proof: Your current address is important for communication and administrative purposes. Providing documents like Aadhaar cards, voter IDs, utility bills, or rental agreements helps verify your place of residence, ensuring that the university can reach you easily and accurately.

Co-applicant Document Checklist

Verifying Identities:

Co-applicant's ID: If you have a co-applicant (like a family member) who is supporting your application, their identity needs to be confirmed too. Just like for the primary applicant, their official identification documents such as Aadhaar cards, PAN cards, or passports need to be provided.
Address Confirmation: Similar to your own address verification, the co-applicant's address also needs to be confirmed to maintain accurate communication.
Co-applicant Images: Recent photographs of the co-applicant(s) are needed for identification purposes. These photos ensure that the right individuals are associated with the application.

Financial Proof:

Income Docs: To ensure that the co-applicant(s) can financially support your education, documents like salary slips of 3 months, Income Tax Returns of 2-3 years, or bank statements of 6 months are required. These documents provide evidence of their financial stability and ability to contribute.
Relationship Proof: If the co-applicant is a family member (like a parent), providing documents that establish the relationship between you and the co-applicant(s) is necessary. This could be documents like birth certificates or legal affidavits that validate the family connection.

Secured Education Loan Document Checklist

Property Validation:

Ownership Proof: If you're offering a property as collateral for your education loan, you need to provide documents that prove your legal ownership of the property. This ensures that the property can be used as security for the loan.
Ensuring No Obligations: A certificate confirming the absence of any legal or financial obligations tied to the property gives assurance that the property is free from encumbrances.
Title Deed: The title deed is a crucial legal document that verifies your ownership rights over the property. It's a formal record of your ownership.

Property Assessment:

Valuation Report: The valuation report assesses the market value of the property being offered as collateral. This evaluation helps the lender determine the value of the security for the loan.
Society/Association Approval: If the property is part of a housing society or association, obtaining their approval to use the property as collateral is essential. This ensures that all relevant parties are aware of the arrangement.
Land Ownership Confirmation: Providing documents that confirm your lawful ownership of the land where the collateral property is located establishes the legitimacy of the property.
Possession Certificate: This document verifies that you have control and possession of the property. It establishes that you are the rightful owner and have the right to use the property as collateral.
Varanasi Allocation Letter: If the property is located in Varanasi, an official allocation letter from relevant authorities like the Varanasi Development Authority (VDA) confirms the allocation of the property within the area. This helps validate the property's location and allocation status.

List of Acceptable Collateral in Varanasi For Education Loans

Your Home: If you own a house or an apartment, you can use it as collateral for your education loan. But it's important that your property has clear ownership documents and no legal problems. This makes the process smoother.
Commercial Property: Just like homes, if you own a shop or an office space, you can also use it as collateral. You need to prove that you really own it and follow all the legal rules.
Fixed Deposits: If you've put your money in a fixed deposit at a bank, you can use that as collateral too. The bank can give you a loan based on a part of the deposit or sometimes the whole amount. This way, you can have more financial options.
Life Insurance: If you have a life insurance policy, the money you can get if you cancel it can be used as a guarantee for your education loan. The lender usually decides how much they can give you based on a part of the policy's worth.
Government Bonds: There are special kinds of papers you can buy from the government, like National Savings Bonds. These can also be used to secure your education loan. Using these bonds can give you the confidence to chase after your education dreams.
Land or Farms: If you have land or a farm, they can also be used to get an education loan, as long as they meet the lender's conditions and don't have any legal problems. These are other ways to make sure you have the money you need for your studies.

Top Colleges for Higher Studies in Varanasi

Banaras Hindu University - [BHU], Varanasi
SHEAT Group of Institutions, Varanasi
Ashoka Institute of Technology and Management - [AITM], Varanasi
Varanasi College of Pharmacy, Varanasi
Heritage Institute of Medical Sciences - [HIMS], Varanasi
SAMS Institute of Hotel Management, Varanasi
School of Management Sciences - [SMS], Varanasi

Repayment Plan for Education Loans in Varanasi

This segment explains the repayment of education loans in Varanasi in a systematic manner. For instance, a loan of Rs. 32,50,000 with a rate of 10. 75% interest rate, it provides a repayment plan for 10 years. The above breakdown depicts the distribution of monthly EMIs between interest and principal amounts and the remaining loan balance at the end of each year. This example makes borrowers appreciate the process of repayment of the loan balance and gives a clear picture of the repayment schedule after the study period.

Repayment schedule	EMI	Interest portion	Principal portion	Loan Outstanding
End of 1st year	52966	32930	20036	3655847
End of 2nd year	52966	30667	22299	3400942
End of 3rd year	52966	28148	24818	3117244
End of 4th year	52966	25344	27622	2801500
End of 5th year	52966	22224	30742	2450090
End of 6th year	52966	18752	34214	2058986
End of 7th year	52966	14887	38079	1623703
End of 8th year	52966	10585	42380	1139252
End of 9th year	52966	5798	47168	600078
End of 10th year	52966	470	52496	0

How to Get Education Loan From Bank in Varanasi

Complete the application: To begin your journey for an education loan, start by filling in the application form provided by WeMakeScholars' financial officers team.
Review by Financial Expert: Once you've submitted your application, our financial officers will get in touch with you. They will assess whether you qualify for the education loan by asking you relevant questions.
Connecting with Lenders: Upon confirming your eligibility, our financial experts 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.
Easy Document Submission: You can conveniently submit all required documents using the secure link, making the entire process smooth and avoiding unnecessary complications.
Guidance from the Lender: The lender you are connected with will guide you through the application procedure. Your financial expert will also be there to address any questions or concerns you may have.
Prompt Sanction Letter: You can anticipate receiving the sanction letter within the timeframe promised by our financial experts. This ensures a seamless process without any delays.

Key Reasons to Choose WeMakeScholars For Education Loan in Varanasi

Our Skills: Our team includes experienced Financial Officers who specialize in offering excellent solutions for education loans. We have a deep understanding of various study locations and courses, which allows us to help you figure out your financial needs.
Wide Variety of Lenders: By working with more than 14 banks, both private and government-owned, we present you with a wide range of education loan choices. This diverse network lets you compare loans based on factors like interest rates and repayment terms, giving you the power to pick the best option for you.
Simple Application Process: Our main goal is to make the education loan application process easy. Our user-friendly online platform ensures a smooth application experience, saving you time and effort.
Clear and Honest Assistance: We are committed to being transparent throughout your education loan journey. We make sure you fully understand aspects like interest rates, fees, and how repayments work. If you have any questions, our Financial Officers are here to help you.
No Hidden Fees: At WeMakeScholars, we don't add any extra charges for our services. With the support of the Ministry of IT, Government of India, we're able to offer a more accessible and affordable loan process.
Guidance on Tax Benefits: We know that taxes and how they affect your finances can be complicated. Our financial experts explain how education loans can lead to tax benefits, especially under sections 80E and 80C.
Special Bonus: As a special perk, when you secure an education loan through WeMakeScholars, you'll receive a cashback of Rs 3000.

FAQs:

Is it possible to apply for an education loan in Varanasi if my credit score is not very high?

Even if your credit score isn't ideal, you can still explore education loan options in Varanasi. Some public banks there have education loan programs that either require a lower credit score or take into account factors like the co-applicant's creditworthiness and the collateral being provided.
Are there any special loan schemes for students with financial difficulties in Varanasi?

Certainly, Varanasi offers specific education loan schemes aimed at assisting economically disadvantaged students. Government initiatives like the Central Government Interest Subsidy Scheme (CSIS) and the Dr. Ambedkar Central Sector Scheme provides opportunities for such students to access loans with reduced interest rates and extended repayment periods.
Are there education loan choices in Varanasi for those planning to study abroad?

Yes, in Varanasi, various banks have designed education loan packages tailored to students who intend to pursue higher education overseas. These loans encompass various expenses including tuition fees, accommodation costs, travel expenses, and other related expenditures.
What's the range of interest rates for education loans available in Varanasi?

Education loan interest rates in Varanasi typically span between 8.5% and 13%. The precise rate depends on factors like the bank you're dealing with, the sum you're borrowing, the duration of the repayment plan, and your individual circumstances.
Can I secure an education loan in Varanasi if I've already started my course?

Certainly, some banks in Varanasi offer education loans even for courses that have already started. However, you might encounter certain conditions such as a cap on the loan amount or a need for additional documentation.

Check your Education Loan Eligibility

Table of content

Top Public and Private Bank for Education Loan in Varanasi

For Studies in India

For Foreign Studies

Interest Rate of Banks Offering Education Loan in Varanasi

For Studies in India

For Foreign studies

List of NBFCs in Varanasi For Education Loan

For Studies In India

For Foreign Studies

Common Terminology Used by Education Loan Providers in Varanasi

Education Loan’s Eligibility Criteria in Varanasi

Document Checklist for Availing Education Loan in Varanasi

Student Document Checklist

Co-applicant Document Checklist

Secured Education Loan Document Checklist

List of Acceptable Collateral in Varanasi For Education Loans

Top Colleges for Higher Studies in Varanasi

Repayment Plan for Education Loans in Varanasi

How to Get Education Loan From Bank in Varanasi

Key Reasons to Choose WeMakeScholars For Education Loan in Varanasi

FAQs:

Our Education Loan team will help you with any questions