Education Loan – Compare & Apply Best Study Loan Online in India

• How does Education Loan work?

  Education loan is the financial aid offered by public banks, private banks, and NBFCs in India to students who lack proper financing to pursue their higher education in India or even abroad, as per their eligibility and requirements. The lenders charge interest on the offered education loan and have certain repayment policies according to which a student will have to repay the loan amount within the repayment duration.

• What is the best way to repay an education loan?

  All the ways through which a student loan is repaid as early as possible is the best way to repay an education loan. Generally, students have to pay EMIs to repay the loan within the stipulated repayment duration which is generally 10 to 15 years, but there are certain methods to repay the loan even before the repayment period. Those are: Pre-payment or Part payment, Reducing the repayment period, Consider transferring the study loan

• Can I get an interest-free education loan?

  You will surely get an education loan at the cheapest rate of interest, than from anywhere else, if you process it with WeMakeScholars, but banks do not offer interest-free study loans. However, you can apply for fully-funded scholarships through our website to arrange funds for your higher education.

• What happens if an education loan is not paid?

  If an education loan is not paid by the borrower, banks will recover their lended money by selling off the collateral pledged by the borrower if it is a collateralized student loan. In the case of non-collateralized study loans, the banks after sending multiple notices to the applicant and guarantor regarding the same will declare the lended loan as default. After which the credit score of the applicant will take a serious hit, and the borrower may not be able to take loans further.

• Can we cancel the education loan after approval?

  Yes, an education loan can be canceled even after approval, but for that a student will have to write a request to the banks, stating the reason for the same, if the lender bank finds the reason satisfactory, it will cancel the loan. But the processing fees incurred while the loan sanctioning process will not be refunded.

• How much education loan can we get without collateral?

  You can get upto Rs 75 lacs without pledging any collateral with the banks, but in order to get such a high amount, your financial co-applicant must be earning well and you should satisfy the other eligibility criteria of the lender banks. A higher amount may also be offered depending on the student’s loan profile, speak to your financial officer to know about the possible lender options.

• Who is eligible for an education loan?

  All the students who satisfy the eligibility criteria of the lender bank can get an education loan. The criterias are different for different banks and their loan schemes. However, the basic eligibility criteria include, academic scores, applied course, applied college or university, preferred country, financial co-applicant’s income, etc. You can check your education loan eligibility by filling out the eligibility check form.

• Who can be a guarantor for an education loan in India?

  A guarantor is a person who owns the property that is being pledged to take an education loan. Usually the primary co-applicant, mostly parents owning the collateral, are considered as a guarantor, but if the co-applicant is not pledging any property as collateral then the candidate’s immediate family. For e.g., uncle, aunt, friends of the candidate can be the guarantor for a collateralized education loan in India.

• What is the current interest rate on education loans?

  The current rate of interest for an education loan with collateral is between 9-11%, while for an education loan without collateral it is 11-13%. Usually, it is suggested to take collateralized education loans from public banks as they charge cheaper interest rates comparatively. However, you are sure to get an interest rate discount of 0.5-2% compared to the market rate, if you process your education loan with WeMakeScholars.

• Can a student get an education loan without parents?

  Yes, a student can get study loan without parents, they can have their siblings or if married, their parents-in-law or spouse as their co-applicants. A student can get an education loan without a financial co-applicant but having any one of the above-mentioned relatives as a primary co-applicant is mandatory to get an education loan.