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Updated on: 21 Nov 2024 |
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Aman Jain graduated from IIT Kanpur, and currently functions as the CMO at GyanDhan. He is deeply passionate about creating equality in higher education and has directly interacted with 2 Lakh...
If you're a student in Kerala looking to pursue higher education but are worried about financial barriers, securing an education loan could be your pathway to success. Kerala, celebrated for its impressive literacy rates, provides various financial aid opportunities for students. In this blog, we will delve into the top education loan options available in Kerala in 2024, helping you make a well-informed choice to finance your educational goals.
Which Bank is Best for an Education Loan in Kerala?
In Kerala, numerous banks provide education loans to students aiming to pursue higher education either within India or internationally. 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 Kerala 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
Leading Banks for Education Loan in Kerala for Abroad Studies
| Bank Name | Loan Amount | Processing Fee |
|---|---|---|
|
Up to INR 1.5 cr with collateral |
INR 10,000 |
|
|
Prime A - INR 1 cr Prime B - INR 40 lakh |
0.75% on the sanctioned loan amount |
|
|
Up to INR 2 cr (secured) Up to INR 1 cr (unsecured) |
Up to 0.75% TO 1% + GST |
|
|
Up to INR 75 lakh without collateral |
Up to 1.5% of the sanctioned loan amount |
|
|
Up to INR 2 cr (secured) Up to INR 40 lakh (unsecured) |
INR 5000 |
|
|
Up to INR 75 lakh |
0.5% - 1% |
|
|
Up to INR 75 lakh |
1% - 1.5% |
|
|
Up to INR 65 lakh |
0.5% - 1.5% |
|
|
Up to INR 80 lakh |
1% - 2% |
|
|
Up to 100,000 USD |
5% (adjusted in the loan amount) |
|
|
Up to 100% cost to study |
Up to 5%, added to loan amount* |
*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!
Kerala Gramin Bank Education Loan Scheme
Kerala Gramin Bank provides an education loan scheme tailored to offer financial assistance to students pursuing postgraduate studies after completing their bachelor’s degree. This scheme supports Indian nationals seeking higher education either in India or abroad. Here are the key details of this scheme:
Loan Limit: The amount available as a loan ranges from Rs. 10 lakhs to Rs. 20 lakhs.
Interest Rate: Interest rates vary between 10% and 13.60%, depending on various factors including the loan amount and the repayment period.
Loan Margin: There is a loan margin of 15%, which varies based on the country where the student intends to study. This margin represents the percentage of the total education cost that the borrower must fund out of pocket.
What are the Documents Required for an Education Loan in Kerala?
When applying for an education loan in Kerala, it's crucial to prepare and present specific documentation to ensure a smooth application process. Here's an overview of the necessary documents required for both unsecured education loans and secured education loans:
Basic Documents Required:
Online Application Form: To initiate your loan application.
Identity Proof: This could be your Aadhaar Card, Voter ID, Passport, or Driving License.
Address Proof: Same as identity proof options like Aadhaar Card, Voter ID, Passport, or Driving License.
Confirmation of Enrollment: An official admission letter from the educational institution.
Educational Records: Certificates from your 10th, 12th, and undergraduate studies.
Proof of Income for the Last Three Months: This includes pay slips or a company letter.
Form 16 for the Past Two Years: For salaried co-applicants showing taxed income.
Income Tax Return (ITR) for the Previous 2 Years: To demonstrate financial history.
Financial Documents: Balance sheets and profit/loss accounts for self-employed co-applicants.
Statement on Breaks in Academic or Employment History: If applicable, must be documented on Rs. 100 stamp paper.
Additional Documents for Secured Loans:
Co-applicant's Basic Income Certificate: Required if no income tax returns are available.
Proof of Collateral Pledged: Such as property title deeds, sale agreement, gift deed, will, etc.
Munnadaram and Conversion Certificate: If applicable, to confirm land conversion for loan collateral.
Acceptance from Neighboring Property Owners: Necessary if the collateral property has access via a private road.
30 Years of Ownership Transfer Documents or Earlier Chain of Sale Deeds: To trace the property's ownership history.
Latest Property Tax and Electricity Bills: To confirm the current status and valuation of the property.
Municipality-Approved Building Plan or Plot Layout Copy: For loans secured against a property under construction or renovation.
Having these documents prepared and organized can significantly expedite the processing of your education loan application in Kerala. Make sure to check with the specific bank or financial institution for any additional requirements or variations in document specifications.
|
Agricultural land can be used as collateral for obtaining education loans. Institutions like Kerala Gramin Bank offer agricultural loans against the mortgage of agricultural land. These loans can cover various agricultural and related activities, including the purchase of land. The loans generally require the land to be valued at 150% of the loan amount if the amount exceeds Rs. 1.6 lakhs, ensuring substantial security for the loan provided. |
Avoid Loan Letdowns: Know What Knocks Your Education Loan Off Track!
Check Your Education Loan Eligibility
Education Loan Interest Rate in Kerala 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% |
Education Loan Interest Rate in Kerala 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% |
- |
|
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
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!
Conclusion
In conclusion, securing an education loan in Kerala enables students to overcome financial hurdles and access higher education. With various loan options available, students can select plans that align with their educational and financial needs. It’s crucial to carefully review different banks' terms, including interest rates, repayment conditions, and collateral requirements.
To enhance the chances of loan approval, students should understand common loan rejection reasons, ensure eligibility criteria are met, provide accurate documentation, and consider securing collateral if needed. Additionally, opting for reputable institutions and aligning with the bank's lending criteria can improve approval prospects.
Education loans provide crucial support for covering tuition, living expenses, and academic materials, helping students focus on their educational and career aspirations. By making well-informed decisions and planning strategically, students in Kerala can manage their educational finances effectively.
In Kerala 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 favorable 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.
Frequently Asked Questions
What expenses are covered by education loans in Kerala?
Education loans in Kerala generally cover a wide range of expenses associated with higher education. These include tuition fees, examination fees, costs related to mandatory study tours and projects, and living expenses like accommodation and meals.
What are the typical interest rates for education loans in Kerala?
Interest rates for education loans in Kerala vary by bank and whether the loan is secured or unsecured. Rates can range from as low as 8.30% to up to 13.5%, depending on the bank and the specifics of the loan product.
Are there any processing fees for education loans in Kerala?
Yes, most banks charge a processing fee for education loans. These fees vary and can be a percentage of the loan amount (ranging from 0.5% to 2%) or a flat fee. Some banks may waive these fees during promotional periods.
What is the moratorium period for education loans in Kerala?
The moratorium period for education loans in Kerala typically lasts from 6 months to 1 year after course completion. This grace period allows graduates time to secure employment before they need to start repaying the loan.
What collateral is required for securing an education loan in Kerala?
Collateral requirements depend on the loan amount and bank policies. For higher loan amounts, collateral such as property or other valuable assets may be required. The exact nature of the collateral and its requirements can vary significantly between banks.
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