Education Loan from Indian Banks and details!

Hi All - I am sure that most the folks have got an admit will next plan for securing education loans from Banks. With respect to that, I have few queries for which I hope you guys have suggestions / answers: 1. Which is the best Indi…

Hi All -

I am sure that most the folks have got an admit will next plan for securing education loans from Banks. With respect to that, I have few queries for which I hope you guys have suggestions / answers:

  1. Which is the best Indian Bank to apply for Education Loans
  2. What is the Interest Rate charged as of now
  3. Formalities involved in applying for education loan
  4. What are the documents to be submitted
  5. What is the repayment tenure
  6. Any other suggestions / pointers
  7. Are there any approved list of banks to show sufficient fund statement when applying for UK Visa?

Thanking in advance !

The answers below is whatever i could gather from my hunt for education loans so please take them with a pinch of salt!
Which is the best Indian Bank to apply for Education Loans
SBI is supposedly good but have stringent criteria and lots of documents. Credila from HDFC is good.
What is the Interest Rate charged as of now
It is around 11% though not very sure
Formalities involved in applying for education loan
They need a admit letter from the college. Depending on the university they would ask for collateral. Top 20 univs don't need much collateral. In India i believe lot of Univs have tie-ups.
What are the documents to be submitted
Admit letters and collaterals if the bank does not have any the college listed.
What is the repayment tenure
7 years
Any other suggestions / pointers
Are there any approved list of banks to show sufficient fund statement when applying for UK Visa?
Yes, i just read the UK has become stringent about banks which can provide fund statements.

The answers below is whatever i could gather from my hunt for education loans so please take them with a pinch of salt!
Which is the best Indian Bank to apply for Education Loans
SBI is supposedly good but have stringent criteria and lots of documents. Credila from HDFC is good.
What is the Interest Rate charged as of now
It is around 11% though not very sure
Formalities involved in applying for education loan
They need a admit letter from the college. Depending on the university they would ask for collateral. Top 20 univs don't need much collateral. In India i believe lot of Univs have tie-ups.
What are the documents to be submitted
Admit letters and collaterals if the bank does not have any the college listed.
What is the repayment tenure
7 years
Any other suggestions / pointers
Are there any approved list of banks to show sufficient fund statement when applying for UK Visa?
Yes, i just read the UK has become stringent about banks which can provide fund statements.


Many thanks John!

Well this year i was rejected by Bank for education loan of 4 lakhs from bank inspite getting selection in MANAGE and XIMB...

but today feeling delighten by giving ma 1st education loan to a needy boy..
feeling like heaven....
This is life...

Which bank rejected a education loan of just 4 Lakhs, it is very surprising.

i heard that there is no collateral for loans upto 7 lakhs, surprising indeed!

guys. I don't have any collateral. so does that mean doors are closed for me to those b schools which have fees of more than 7.5 lakhs ? 😞

rohitpal Says
guys. I don't have any collateral. so does that mean doors are closed for me to those b schools which have fees of more than 7.5 lakhs ? :-(


Hi Rohit -

It is not like that, it also depends on the person who is going to co-sign / sponsor your education loan. If they are financially strong / have steady income which can ensure repayment of at least the Simple Interest till you get a job, then I do not think there is any problem in securing a loan.
Popeyed Says
Which bank rejected a education loan of just 4 Lakhs, it is very surprising.

Well that was the rude Manager..
his excuse was that i am not giving any type of colleteral security...
well thats was a wrong excuse bt i had to follow his decision...

but today i am in the condition to provide loan..so no regret..
anyway Abhi to bahut door jaana he..
miles to go bfore i sleep..!!!

I was told by the credila loan officer that the criteria for the loan varies from b-school to b-school. Fees to all IIMs and ISB can have the major part of the loan covered without collateral. So are the top 20 b-schools in the world but the maximum amount is 20 lakhs.

Hi Rohit -

It is not like that, it also depends on the person who is going to co-sign / sponsor your education loan. If they are financially strong / have steady income which can ensure repayment of at least the Simple Interest till you get a job, then I do not think there is any problem in securing a loan.


After doing quite a bit of r & d in market, I came to know Credila Financial Services Pvt Ltd (HDFC Ltd Co) provides special loan offers for students going to good ranked colleges/universities. Bases on that they even provide loan upto Rs.10-20 lakhs without any security.

I'm aware of their contact details particular for these kind of assistance. Let me know if you want me to share them.
After doing quite a bit of r & d in market, I came to know Credila Financial Services Pvt Ltd (HDFC Ltd Co) provides special loan offers for students going to good ranked colleges/universities. Bases on that they even provide loan upto Rs.10-20 lakhs without any security.

I'm aware of their contact details particular for these kind of assistance. Let me know if you want me to share them.


can i show Fixed Deposits as collateral?
johnydutta Says
can i show Fixed Deposits as collateral?


Yeah I guess so, It is mentioned on their website too....

what is pre payment charge.
i dont want my loan to be extended to 7 years.
i want to repay them in 3 years. can i ?

Hi guys,

great to see a forum exclusively for edu loans. I have faced huge problem this year from PSU banks as well as Credila(HDFC). All that they say in their website that Credila is a gala experience when compared to PSU banks is actually a farce. They charge a processing fee and have more problems than PSU banks (where you are at least mentally prepared for a bad experience. But Credila even after saying that they have a tie up with your college and course actually behave completely the opposite.

I got an admit with SP Jain for their global MBA program, and my experience with loans has been terrible. Due to delay I had to defer my intake to the next intake of the course. All these things about 4 Lakh with security is not true. When you actually approach the bank they come up with co-applicant + 3rd party guarantee + whatnot. Its a hell of a experience. So my advice to all who want to apply for and take huge loans don even think of this unless you have loads of money (in which case applying for a loan does not make sense, but then that is the oxymoron here).

Guys, who differ with me and have had a very easy and nice experience are the lucky ones and could help us with their tips and tricks so that we know how to manage an edu loan.

Thanks!

Hi guys,

great to see a forum exclusively for edu loans. I have faced huge problem this year from PSU banks as well as Credila(HDFC). All that they say in their website that Credila is a gala experience when compared to PSU banks is actually a farce. They charge a processing fee and have more problems than PSU banks (where you are at least mentally prepared for a bad experience. But Credila even after saying that they have a tie up with your college and course actually behave completely the opposite.
Thanks!

For IIMs and ISB, education loans are without collateral. While PSUs will give loan upto 15 lakhs Credila will give entire amount. I have batch-mates in my IPMX class who got loan from Credila without much hassle. I am myself applying loan from PSU and it is definitely time consuming.

Hi every one please go through this link.

http://www.thehindu.com/multimedia/archive/00116/SBI_presentation_on_116880a.pdf

It is very useful.

john_nash Says
i heard that there is no collateral for loans upto 7 lakhs, surprising indeed!


I am staying in trivandrum kerala. My uncle stays at kolkatta, can he become ad-coborrower along with my mom. will the different locations be a problem.in Credilla
My uncle is in senior position in GIC.kindly reply ASAP.

thanx
I am staying in trivandrum kerala. My uncle stays at kolkatta, can he become ad-coborrower along with my mom. will the different locations be a problem.in Credilla
My uncle is in senior position in GIC.kindly reply ASAP.

thanx


different locations will never be a problem as long as your uncle has all the relevant docs needed.