How To Get an 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. Ready to change your educational desire into reality without making money a disability? Here, we bring you essential information and practical tips to help you get the funding you need effortlessly.

What are Education Loans?

An education loan can be a fruitful investment for you. These loans cover different education costs so that students can focus on learning without worrying about the financial burden. Educational loans can be offered 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 security and come with a higher risk for lenders, therefore these loans have higher interest rates and stricter repayment terms.

Education Loan Options After 12th

Several education loan providers will help you understand how to get education loan after 12th in India. 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 must fall between 18 to 35 years at the time of application.

Documents Required 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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  Identity proof like aadhar card, voter ID, driving license, passport. 
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  Address proof (electricity bill/ domicile certificate/ landline telephone bill/ aadhar card/ driving license)
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  Academic records (mark sheets and certificates)
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  Admission letter from the educational institution
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  Course details including fees, duration, etc
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  Visa for studies abroad
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  Passport copy

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 for the last 6 months
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  Loan statements for any existing liabilities from the previous year

It is 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): IITs are among the most preferred institutions for education loans due to their high academic reputation and excellent job placement rates. Many banks offer education loans with lower interest rates and relaxed collateral requirements for students admitted to IITs.

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  Indian Institutes of Management (IIMs): Education loans for IIMs generally finance tuition costs, accommodation, and study resources, helping students to build successful careers in business leadership. These leading institutions offer postgraduate, doctoral, and executive management programs.

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  All India Institutes of Medical Sciences (AIIMS): Esteemed public medical college that sets 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.

Education Loan for Courses After 12th

If you plan to pursue your higher education after 12th, it often comes with a financial burden, especially if students plan to study in top colleges in India or abroad. To help students with finances, many banks and financial institutions offer an education loan for 12th pass students for several courses. 

These loans can help students fund a variety of programs like undergraduate degrees, diploma courses, professional certifications, and skill-based programs both in India and abroad.

Education loan after 12th class have become a popular option among students because of flexible repayment options, moratorium periods, and competitive interest rates.

How to Apply for an Education Loan through GyanDhan?

Understanding how to get education loan after 12th in India 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.

Education Loan Approval and Disbursement

The process of education loan approval involves verification of the borrower’s profile, and once approved, the funds are disbursed as per the agreed terms. 

Application Processing and Document Verification:

Once you submit your loan application, the bank will review your eligibility criteria and verify all the documents provided, including academic records, collateral documents (in case of education loans with collateral), admission details, and financial documents. 

Loan Approval and Sanctioning:

After successful verification, the lender will approve your loan application and will issue a sanction letter outlining the approved loan amount, repayment terms, and disbursement process.

Loan Agreement & Fund Disbursement:

You will be required to sign the loan agreement accepting the specified terms and conditions. 

The disbursement of funds will take place as per the agreement. 

Important Terms to Understand About Education Loans

Below are some of the common terms used in the education loan world. Being aware of these terms will help you make more informed and balanced decisions regarding your education loan.

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  Interest rate: This is the cost of borrowing that you will 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 repayments.

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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 help you to make informed decisions that aligns with your 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 12th in India and navigating the world of education loans. 

From choosing the right lender to understanding the ins and outs of your loan options, GyanDhan will cover every aspect of your education loan journey at free of cost. Remember, the right financing can put you on the path to academic and career success without the burden of financial worries. If you are 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