Education Loan for Working Professionals

Posted In education loan On October 17, 2018
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If you are a working professional considering a course to help you gain an edge over your colleagues and increase your worth, we have great news! Apart from adding to your profile, having work experience also means Banks and NBFCs have tailored loans especially for you.

These loans can be availed for postgraduate courses, special professional courses, management courses, vocational upgradation or courses leading to a professional qualification, provided you fit the eligibility criteria. Let’s talk about some of these loan schemes that can be beneficial for you if you’re considering going back to school:

SBI-Education Plus: Don’t have time for a full-time course? Well, SBI got you covered. This loan can be availed for part-time or distance education courses. You have to provide the admit card from the institute and the letter of consent from the office to the bank. If you’re below 45 and have 2 years of experience, don’t look any further!

Bank of Baroda-Baroda Career Development: This loan is available for working professionals who want to pursue a degree, diploma, vocational, pilot training, or skill training. To avail this loan, you have to provide a collateral and the bank leaves a 20% margin on the loan amount, which means the borrower will have to cover 20% of the expenses. This is however, great option for courses with higher fee structure.

Oriental Bank of Commerce Education: Loan Scheme for Working Professionals: Whether you are working in the private or public sector, you are easily eligible for this loan if you are okay bearing some of the burden yourself. The bank leaves a margin of 25 percent on the loan amount for all loan sanctions. For a loan amount of more than 7.5 lacs, the repayment period can go up to 15 years.

Things to keep in mind when considering an education loan via these schemes:

  • The EMI for education loan for working professionals starts after one month of disbursement.
  • The interest rates vary from 9% to 14% depending on the borrower’s profile and the course.
  • The borrower should have at least 2-3 years of experience.
  • The margin left on loans range from 20-25%.
  • A co-borrower will be required for the loan since the borrower will leave his job to complete his course, the responsibility of repaying the loan will fall on the co-borrower.

Since you’re working full time, it’s not practical for you to visit banks and NBFCs and negotiate with them to get the best rate of interest. It’s easier to compare banks online, but what about the ROI? Having a lower ROI can substantially bring your EMIs down. To ensure the best rate of interest, log on to Credenc. Our team will make sure you get the lowest ROI by sending your application to multiple banks and negotiating with them on your behalf.

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