Education Loan for Undergraduate Students

For students who are fresh out of their high school, this is the right time to plan your career needs. With the growing cost of Education, parents are finding it really difficult to fulfil their child’s career needs. Keeping this in mind, Education loan has become a necessary requirement in a student’s life.

For undergraduate students who are newly taking an Education loan below are the few points to keep in mind while doing so:

1. The applicant must be a citizen of India.

2. The student should have confirmed admission to the particular college/university before applying for the loan.

3. The age of the candidate must be between 18 to 35 years during applying for the loan.

4. Irrespective of the loan amount, the borrower needs to produce a co-signer to the bank.

Different banks provide different loan rates depending on the amount required for the entire duration of the course. Indian banks are divided into public, private sectors and NBFCs. While NBFCs provide a higher loan amount to borrowers without the requirement of collateral or third party guarantor; Public Sector banks provide concession on the rate of interest to the borrowers. Thus, it is important to gather knowledge about the loan schemes from different banks to select the best loan plan for you.

Repayment plans vary from one loan scheme to another. Paying back your loan on time can result in a good credit score (CIBIL) which can be useful in easy sanction of loans in the future.

For more information about different loan schemes and their respective ROI, you can visit our comparison page here. Credenc is a multi-window platform which will suggest you ROI from different banks with respect to your course structure. For any other queries related to Education loan feel free to reach out to the loan guidance experts at Credenc.