How To Get Education Loan After 12th?

Getting started on your journey to higher education just got easier! Want to know “How to Get a Student Loan After 12th? Look no further. This guide is your key to unlocking the world of student loans, offering a clear path through the financial obstacles that stand between you and your academic dreams. Whether you are looking to join a prestigious university in India or abroad, financial constraints should not hold you back. Here, we bring you essential information and practical tips to help you get the funding you need effortlessly. Ready to change your educational desire into reality without making money a disability.

What are Education Loans?

An education loan is hope for the lighthouse. These loans cover different education costs so that students can focus on learning without worrying about the financial burden. These loans cover a variety of educational expenses, so students can concentrate on studying without worrying about the economic burden. Educational loans can be used by various banks and financial institutions, and each provides different conditions and advantages to meet the various needs of students. The importance of student loans goes beyond simple financial aid; they are an investment in the future, allowing students to reach their full potential and achieve their academic and career goals.

Types of Education Loans

Education loans can broadly be categorized into two types: secured and unsecured loans. Here’s a comparative overview to help you understand the differences:

Secured loans require collateral, such as real estate or a fixed term deposit, and are often offered with lower interest rates and more flexible repayment terms, making them a lower risk option for lenders. Unsecured loans, on the other hand, do not require collateral, but represent a higher risk for lenders, and therefore generally have higher interest rates and stricter repayment terms.

Education Loan Options After 12th

Several education loan providers will help you understand how to avail an education loan after completing class 12. How to secure the funds you need for class 12 and beyond. The main factor that will determine which financial institution you choose is whether you intend to continue your studies in India or abroad. To help you understand better, we have listed some lenders keeping both scenarios in mind.

Education Loan for Indian Institutes:

Education Loan for Abroad Institutes:

Eligibility Criteria for Education Loans After 12th

When it comes to availing an education loan, the eligibility criteria can vary from one lender to another. However, there are some common requirements that most banks and financial institutions consider:

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  The applicant must be an Indian citizen.
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  Must have secured admission to a recognized university or course, either in India or abroad.
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  The age of the applicant typically falls between 18 to 35 years at the time of application.

Documentations for Education Loan after 12th

To apply for an education loan, the following documents are generally required:

Application Documents:

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  Duly filled loan application form
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  Passport-sized photographs
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  Academic records (mark sheets and certificates)
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  Admission letter from the educational institution

Co-applicant Documents:

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  Identity proof (Aadhar card, Passport, Voter ID)
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  Residence proof (Utility bills, Passport)

Income Documents:

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  Latest salary slips or income tax returns
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  Bank statements of the last 6 months

It's important to note that the required documents may vary depending on the lender’s policy and the specifics of the loan.

Preferred Top Institutions in India for Education Loans

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  Indian Institutes of Technology (IITs): A group of autonomous public technical universities known for their rigorous engineering, technology, and research programs. Education loans for IITs cover tuition, lab fees, and living expenses, acknowledging their pivotal role in shaping future innovators.

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  Indian Institutes of Management (IIMs): Premier institutions offering post-graduate, doctoral, and executive education programs in management. Loans for IIMs often include course fees, study materials, and hostel charges, supporting students aiming for leadership roles in business.

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  All India Institutes of Medical Sciences (AIIMS): Esteemed public medical colleges that set benchmarks in medical education, research, and patient care in India. Education loans for AIIMS cater to a wide range of expenses, including tuition, equipment, and hostel fees, facilitating the journey of future healthcare professionals.

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  National Institutes of Technology (NITs): Centers of excellence in undergraduate and postgraduate engineering and technology education. Education loans for NITs are designed to cover tuition, books, and living costs, making premier engineering education accessible.

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  University of Delhi (DU): One of the country's leading universities offering a wide array of undergraduate, postgraduate, and doctoral programs. Education loans for DU students can include tuition fees, living expenses, and other academic costs, supporting diverse academic pursuits in humanities, sciences, and commerce.

How to Apply for an Education Loan through GyanDhan?

Understanding how to get education loan after 12th is easy with GyanDhan. All you need to do is follow the given steps -

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  Check Eligibility: Begin by checking your eligibility on the GyanDhan website.

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  Consult Education Loan Counselor: Get personalized advice by consulting with an education loan counselor.

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  Submit Documents: Provide all the necessary documents for processing your application.

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  Get Approval and Sign Agreement: Once approved, review and sign the loan agreement.

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  Disbursement: The loan amount will be disbursed as per the requirements stated in the admission letter.

Expenses Covered under Education Loans

Education loans are designed to cover a wide range of expenses to ensure that students can pursue their education without financial hindrances. These typically include:

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  Interest rate: The amount of interest you'll pay on top of the principal loan amount.

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  Processing fee and time: The cost and duration required to process your loan.

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  Margin money: The percentage of the total expense that the bank will not cover.

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  Moratorium period: A grace period during which you are not required to make loan payments.

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  Tax benefit: Potential tax deductions available on the interest paid on the loan.

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  Loan duration: The total time you have to repay the loan.

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  Covered expenses: What the loan will cover, such as tuition, living expenses, books, and other academic fees.

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  Prepayment terms and conditions: Rules around repaying the loan early, including any penalties or benefits.

Careful consideration of these aspects will enable students to make informed decisions that are aligned with their financial and educational goals, laying a solid foundation for future endeavors. Now you have an easy-to-follow guide to understanding how to get an education loan after grade 12 and navigating the world of education loans. From choosing the right lender to understanding the ins and outs of your loan options, we’ve got you covered. Remember, the right financing can put you on the path to academic and career success without the burden of financial worries. If you're ready to take the next step towards securing your education loan, why not start with GyanDhan? Check your eligibility and find the best education loan tailored to your dreams. Let's make your educational journey as rewarding as it should be!

Frequently Asked Questions