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Education Loan in Chandigarh

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Education Loan in Chandigarh

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Brinda Khurana
Brinda Khurana

Study Abroad Expert

Updated on:  27 Oct 2024 | 
Reviewed By:  Aman  
| 88 | 59  min read

Education loans in Chandigarh offer a valuable financial resource for students aiming to further their education, whether within India or abroad. As the capital of both Punjab and Haryana, Chandigarh boasts a robust economy and a high quality of life, making it an attractive place for educational investment. 

Education loans in Chandigarh not only assist individual students in achieving their academic and professional goals but also contribute to the educational and economic health of the region.

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Which Bank is Best for an Education Loan in Chandigarh?

In Chandigarh, students can access education loans from multiple banks for both local and international educational pursuits. It's important for students to carefully compare the different loan options available, considering factors like interest rates, repayment terms, and additional benefits. It's advisable to thoroughly explore the various offerings from these public sector and private sector banks as well as NBFCs to find an education loan that best suits your educational and financial requirements.

Leading Banks for Education Loan in Chandigarh For Studies in India 

Bank Name  Loan Amount  Processing Fee

State Bank of India 

Up to INR 50 lakh

Nil - INR 10,000+Tax 

Axis Bank 

Up to INR 75 lakh (unsecured) 

Up to 2% of the amount+GST 

ICICI Bank 

Up to INR 1 crore 

Up to 2% of the amount +GST

IDFC First 

Up to INR 30 lakh (unsecured) 

Up to 1.5% of the amount 

UBI 

Up to INR 1.5 cr (secured) 

Up to INR 40 lakh (unsecured)

INR 5000 (refundable) 

HDFC Credila 

Up to INR 40 lakh 

1% + GST 

Auxilo 

Up to INR 65 lakh 

Up to 2% of the sanctioned loan amount 

InCred 

Up to INR 60 lakh

0.75% - 1% of the sanctioned loan amount

BOB 

INR 7.5 lakh - INR 1.5 cr 

1% (max. INR 10,000) 

Check Your Education Loan Eligibility

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Leading Banks for Education Loan in Chandigarh for Abroad Studies

Bank Name  Loan Amount  Processing Fee

State Bank of India

Up to INR 1.5 cr with collateral 

INR 10,000

Axis Bank

Prime A - INR 1 cr

Prime B - INR 40 lakh 

0.75% on the sanctioned loan amount 

ICICI Bank 

Up to INR 2 cr (secured) 

Up to INR 1 cr (unsecured) 

Up to 0.75% to 1% + GST 

IDFC First Bank

Up to INR 75 lakh without collateral 

Up to 1.5% of the sanctioned loan amount 

Union Bank of India 

Up to INR 2 cr (secured) 

Up to INR 40 lakh (unsecured) 

INR 5000

HDFC Credila 

Up to INR 75 lakh 

0.5% - 1% 

Avanse 

Up to INR 75 lakh 

1% - 1.5% 

Auxilo 

Up to INR 65 lakh 

0.5% - 1.5% 

InCred 

Up to INR 80 lakh 

1% - 2% 

MPower Financing

Up to 100,000 USD 

5% (adjusted in the loan amount) 

Prodigy Finance 

Up to 100% cost to study 

Up to 5%, added to loan amount*

Bank of Baroda 

Up to 1.5 cr with collateral 

INR 10,000 + GST 

*Note: Upon loan approval, students are required to pay an upfront fee of $100 to receive their sanction letter.
 

Explore Best Banks for Education Loans!

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What are the Documents Required to Avail an Education Loan in Chandigarh?

Here's an overview of the necessary documents required for both unsecured education loans and secured education loans:

 

Essential Documents for Applicants:

  • list items Admission Confirmation: Official acceptance letter from the educational institution.
  • list items Education Loan Application Form: A detailed form designed by our financial experts to simplify the application process.
  • list items Passport Size Photographs: Recent photographs of the applicant.
  • list items Proof of Identity: Valid identification documents such as voter ID, passport, or Aadhar card.
  • list items Proof of Address: Documents confirming the applicant’s current residential address, like utility bills or passports.
  • list items Educational Certificates: Documents showing performance in qualifying exams and marks from 10th and 12th grades.
  • list items Competitive Exam Results: Scores from exams like GMAT, TOEFL, GRE, or IELTS, if required.
  • list items Cost Breakdown: Detailed listing of all expenses covered by the loan, including tuition and living expenses.
  • list items Statement of Purpose: An essay outlining the student's academic and career objectives.
  • list items Proof of Age: Birth certificate or high school diploma.
  • list items Income Proof: Relevant documents detailing income, if necessary.
  • list items Bank Statements: Typically, the most recent six months' statements.

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    Required Documents for Co-applicant (Parents, Guardians, and Spouse):

  • list items Co-Applicant Form: A fully completed form signed by the co-applicant.
  • list items Passport-sized Photos: Recent passport-sized photographs of the co-applicant.
  • list items Proof of Identity: Valid identification documents such as a passport, voter ID, or Aadhar card.
  • list items Proof of Address: Documents that verify the co-applicant’s current residence, like utility bills or an Aadhar card.
  • list items Income Verification: Documents to assess the co-applicant’s financial capacity, which may include recent salary slips, Income Tax Returns (ITR) for the past two or three years, Form 16, or Profit and Loss statements if they are self-employed. (three years in case of self-employed and two years if salaried to avail a loan from Avanse). 
  • list items Bank Statements: Typically covering the past six months (eight months in case of Avanse).
  • list items Proof of Relationship with the Student: Official documents such as a marriage or birth certificate, when applicable.

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    Essential Property Documents (if collateral is required for large loan amounts):

  • list items Property Title Deeds: Official documents showing ownership details including conveyance, sale, and other legal paperwork.
  • list items Property Valuation Certificate: An assessment conducted by a certified valuer to establish the property's value.
  • list items Encumbrance Certificate: Document confirming that the property is free from any legal liabilities or claims.
  • list items Proof of Property Tax Payments: Documentation that confirms payment of all due property taxes.
  • list items No Objection Certificate (NOC): This is required from the housing society or local authorities to ensure there are no objections to the property being used as collateral.

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    Additional Documentation (as required):

  • list items Income Tax Returns: Required for co-applicants, covering the last two to three years.
  • list items Verification of Current Debts: Documentation detailing any existing debts or financial obligations.
  • list items Attestation of Academic Gaps: A statement or documentation explaining any interruptions in the applicant's educational history.

    • Check Your Education Loan Eligibility

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    Acceptable Collaterals for an Education Loan in Chandigarh:

  • list items Residential Property: You can pledge your house, flat, or plot in Chandigarh as collateral for an education loan. It’s crucial to ensure that the property has clear titles and is free from any legal disputes to facilitate the collateral process.
  • list items Commercial Real Estate: Similar to residential properties, commercial properties can also serve as collateral. You must demonstrate clear ownership and comply with all legal requirements to use commercial real estate for this purpose.
  • list items Fixed Deposits (FDs): Fixed deposits held with banks can be pledged as collateral for an education loan. The loan amount is usually a specific percentage or the total value of the FD, offering financial flexibility.
  • list items Life Insurance Plans: The surrender value of life insurance policies can be used as collateral when securing an education loan. Lenders typically offer a loan amount based on a percentage of the policy’s value.
  • list items Government Bonds: National Savings Bonds and other government securities can be used as collateral. Utilizing these assets provides the financial backing needed to pursue educational aspirations.
  • list items Land or Agricultural Property: This type of property can also be used as collateral for educational loans, provided it meets lender criteria and is free of any encumbrances, offering additional financial options for funding education in Chandigarh.  

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    Avoid Loan Letdowns: Know What Knocks Your Education Loan Off Track!

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    Education Loan Interest Rate in Chandigarh for Studies in India

    Bank Name  Interest Rate  Interest Rate Concession 

    State Bank of India 

    Starts from 8.30% 

    0.60% Business strategy discount 0.50% - for female students 

    0.50% - Rinn Raksha 

    Axis Bank 

    Starts from 11.5% 

    0.5% - 2% 

    ICICI Bank 

    Starts from 10.5% -11% 

    0.5% - 2% 

    IDFC First 

    Starts from 8.5% - 10% 

    0.5% - 2% 

    UBI 

    Starts from 11.15% 

    0.5% for female students

    1% if the SI is paid in full 

    HDFC Credila 

    Starts from 10.25% - 12.75% 

    		 -

    Auxilo 

    Starts from 11% - 13.5% 

    0.5% - 2% 

    InCred 

    Starts from 11% - 13.5% 

    0.5% - 2% 

    BOB 

    Starts from 8.85% 

    0.5% 
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    Education Loan Interest Rate in Chandigarh For Studies in Abroad

    Bank Name  Interest Rate  Interest Rate Concession 

    State Bank of India 

    Starts from 10.15% 

    0.5% concession in interest for female students 

    0.5% - Rinn Raksha 

    Axis 

    9.99% - 12.5% 

    		 -

    ICICI 

    10.25% - 12.5% 

    		 -

    IDFC First 

    9.5%-11% (secured) 

    11%-13% (unsecured) 

    		 -

    UBI 

    9.25% - 9.75% 

    		 -

    HDFC Credila 

    10.25% - 12.75% 

    		 -

    Avanse 

    10.75% - 13% 

    		 -

    Auxilo 

    11.5% - 13% 

    		 -

    InCred 

    11.85% - 13.25% 

    		 -

    MPower 

    12.99% - 15.99% 

    -

    Prodigy 

    11.5% - 13.5% 

    -

    BOB 

    9.7% (fixed) 

    0.20% concession in interest for female applicants of non-premier institutes

    Verify your eligibility for an education loan with GyanDhan today! Simply visit the GyanDhan website, use their loan eligibility tool, and receive instant feedback on your options. 

    Calculate your Education Loan EMI

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    What is the Eligibility Criteria to Avail an Education Loan?

    To qualify for this education loan scheme, applicants must meet specific eligibility requirements:
     

    1. Parental or Guardian Representation: A parent or guardian must act as the co-borrower for students who are minors, ensuring legal and financial responsibility.
     

    2. Joint Loan Agreement: The loan will be issued in the names of both the student and the parent/guardian, linking both parties to the financial commitment.
     

    3. Admission Through Merit: The student must have secured admission to a recognized institution either in India or abroad, based on merit through a competitive selection process.
     

    These criteria are designed to ensure that the loan is used for legitimate educational purposes and that there is adequate financial backing to support the student's academic journey.

    Top Benefits of Education Loans—Learn How They Can Empower Your Academic Journey! 

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    Conclusion

    In conclusion, education loans in Chandigarh provide a robust mechanism for students to finance their academic pursuits, both locally and internationally. With a variety of banks offering flexible loan options, students can find financial solutions that match their educational goals and financial situations. The loans cover a comprehensive range of expenses, ensuring that students can focus on their studies without the burden of financial stress.

     

    In Chandigarh and exploring education loan options? GyanDhan is your go-to platform, offering a pathway to secure financing for your higher studies in India or abroad. Our education loan experts help you in securing high loan amounts under favourable terms with a track record of higher loan approval rates. We also assist with pre-visa loan disbursement, crucial for your visa application. Best of all? Our expert, end-to-end service comes at absolutely no extra cost to you. Check your loan eligibility on GyanDhan now and take the first step towards realizing your academic dreams.

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    Frequently Asked Questions 

    How do banks determine the loan amount for education loans?

    Banks consider several factors including the cost of tuition, fees, and other educational expenses, as well as the applicant’s and co-applicant’s financial background. For studies abroad, the amount also factors in travel expenses and cost of living in the foreign country.

    What happens if a borrower fails to repay the education loan?

    Defaulting on an education loan can have serious consequences including a negative impact on the credit score of both the borrower and the co-borrower. It can also lead to legal action by the bank. Banks usually offer options like restructuring the loan to make repayment more manageable before taking severe measures.

    Are there any special loan schemes for women or economically weaker sections in Chandigarh?

    Yes, several banks offer special concessions on interest rates for female students or students from economically weaker sections. These concessions are part of the banks' efforts to promote higher education among all sections of society.

    Can I prepay my education loan without any additional charges?

    Most banks allow prepayment of the education loan without any penalty after the moratorium period. However, it’s important to check with your specific bank as terms can vary.

    Is a guarantor necessary for securing an education loan in Chandigarh?

    For loan amounts higher than INR 4 lakhs, banks typically require a third-party guarantee or collateral. For smaller loan amounts, a guarantor is not usually necessary, but the student’s parents or guardians must act as co-borrowers.

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