AU Small Finance Bank Education Loan

Whether you choose to study overseas or in India, figuring out the expenses of a higher education can be very difficult. The AU Small Finance Bank education loan could be the answer you're looking for if you're investigating your funding choices. This blog post will walk you through the process of obtaining the funds you require, as well as describe the characteristics of the loan, eligibility conditions, and essential application steps. This loan is intended to help you go from just daydreaming about your educational objectives to pursuing them by lessening the financial burden of education.

AU Small Finance Bank Education Loan for Studies in India and Abroad

For students who want to pursue higher education both domestically and abroad, the AU Small Finance Bank education loan offers vital financial support. The loan features are designed to meet a variety of financial requirements and academic goals, giving students access to the tools they need to be successful in the classroom. 

*Note: The interest rate for education loans from AU Small Finance Bank is variable, meaning it might change depending on the state of the market.

This education loan is intended to help students pay for the high costs of attending institutions, both domestically in India and overseas. These costs include tuition, living expenses, and travel expenditures.

Eligibility Criteria for AU Small Finance Bank Education Loan

Students looking for financial aid for their education overseas or in India must be aware of the eligibility requirements for an AU Small Finance Bank education loan. This section helps potential borrowers prepare for their application by outlining the main requirements required to be eligible for funding.

• Indian nationality: The candidate must hold Indian nationality.
• Proof of admission: Candidates must have been accepted into an accredited university, either domestically or abroad.
• Educational requirements: Candidates must be prepared for further study by having finished their 10+2 or an equivalent program.
• Collateral: Collateral may be needed to secure the loan, depending on the loan amount and the study destination.
• Co-applicant requirement: The loan application needs a co-applicant. Typically, a parent, spouse, or guardian would sign the loan contract with you.
• Course eligibility: Undergraduate, graduate, vocational, and technical courses in India and overseas are among the many academic programs for which AU Small Finance Bank offers education loans.
• Repayment capacity: To make sure the loan can be repaid successfully, the bank will evaluate the applicant's and co-applicant's financial stability.

For the most up-to-date and complete information about AU Small Finance Bank's education loan qualifying requirements, prospective borrowers are advised to speak with them directly or visit their official website. The most up-to-date information on the prerequisites for obtaining an education loan will be provided through this direct interaction, along with customized counsel.

Document Required for AU Small Finance Bank Education Loan

Whether you're studying in India or overseas, obtaining an AU Small Finance Bank education loan entails assembling a comprehensive set of documentation to speed up the loan application evaluation process. A table detailing the usual documents that are needed from the applicant and co-applicant is provided below.

This comprehensive documentation ensures a thorough and equitable review procedure for the education loan by assisting AU Small Finance Bank in determining the applicant's and co-applicants financial stability and capacity for repayment. It is recommended that applicants inquire directly with AU Small Finance Bank for the most up-to-date and comprehensive information regarding the required papers. This is because the requirements may change depending on the loan amount, course, and institution.

AU Bank Education Loan Interest Rate

The interest rate on AU Bank education loans starts from 9% per annum. These are based on Marginal Cost of Funds-based Lending (MCLR).

AU Bank Education Loan: Fees & Charges

In this section, we will discuss the various charges for education loans from AU Small Finance Bank. Check out the table given below-

There are other charges applicable like ECS return, change of bank, conversion of interest rate (fixed to floating rate or vice versa), etc. Please consider these charges as well before applying for an education loan from AU Bank.

Pros and Cons of AU Small Finance Bank Education Loan

Benefits of AU Small Finance Bank Education Loan

Examining the benefits of an education loan from AU Small Finance Bank uncovers several characteristics intended to support your job advancement as well as your academic endeavors. To make the academic journey of students pursuing higher education in India or overseas more seamless, AU Small Finance Bank offers tailored financial solutions.

• Flexible repayment options: Adjust your loan repayment schedule to your post-graduation financial situation. To facilitate the transition into working life, AU Small Finance Bank offers flexible repayment options that can be adjusted to your changing financial situation.
• Benefits related to taxes: Section 80E of the Income Tax Act allows you to deduct interest paid on your education loans from your taxes. Your taxable income might be much decreased by this deduction, which will increase your money savings over the repayment period.
• Comprehensive educational help: AU Small Finance Bank offers the financial help required to pursue a variety of educational pathways. This support spans from undergraduate degrees to professional certifications.
• Effective loan processing: Take advantage of AU Small Finance Bank's expedited loan approval procedure, which guarantees prompt and effective processing of your application for an education loan. You can obtain the required finances in time for your academic sessions with the assistance of this timely service.
• Committed customer service: Get individualized support all the way through the loan application process. The committed customer care team at AU Small Finance Bank is available to assist you with any questions or concerns, guaranteeing a positive and easy borrowing experience.

With these advantages, the AU Small Finance Bank education loan is an appealing option for students looking for flexible and dependable funding for their studies, both domestically and abroad.

Loan Repayment Terms of AU Small Finance Bank Education Loan

AU Bank education loan offers flexible repayment options as follows:

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  Moratorium Period: A grace period of up to 12 months post-course completion is allowed before re-payment starts.

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  Loan Tenure: The repayment option is favourable with 5 to 15 years tenure.

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  Monthly EMIs: Monthly instalments are calculated based on your loan amount, interest rate, and repayment term.

Application Process of AU Small Finance Bank Education Loan

Here are the steps you need to follow to apply for an education loan from AU Bank:

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  The first step is to select the application method, you can either apply at the bank’s website or you can apply in person.
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  The second step is to provide all the required documents to the bank. Make sure accurate and complete information is filled.
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  The next stage is to send the necessary documents, which include financial documents, academic records, admission letters, and other paperwork required by the bank.
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  Once the above step is done, the bank will review your application and verify the details. If there are no discrepancies, the bank will approve your loan.
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  After approval, comes the disbursal stage wherein the bank will deposit the amount to either your account or the university’s account depending on the terms and conditions.

GyanDhan is here to assist you in completing the loan application process with ease. Also, you can use our data-backed tool to check your loan eligibility and start your journey toward your dream college.

Frequently Asked Questions