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Education Loan in Punjab

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Education Loan in Punjab

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Brinda Khurana
Brinda Khurana

Study Abroad Expert

Updated on:  22 Nov 2024 | 
Reviewed By:  Aman  
| 469 | 59  min read

In recent years, Punjab has emerged as one of the major contributors to the number of Indian students studying abroad. In 2022 alone, approximately 13.24 lakh Indian students pursued higher education outside India, with a significant proportion of these students coming from Punjab, alongside other states like Andhra Pradesh and Maharashtra (Careers360). This trend reflects the growing aspiration among students in Punjab to seek educational opportunities internationally, particularly in countries like the UK, Canada, the US, and Australia (Careers360).

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Which Bank is Best for an Education Loan in Punjab ?

In Punjab 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 Punjab 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 Punjab 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 Punjab ?

For issuing unsecured education loans in Punjab, the necessary documents include:

  • list items Admission Confirmation: Acceptance letter from the educational institution.
  • list items Education Loan Application Form: Carefully crafted form by financial experts to ease the application process.
  • list items Passport Size Photographs: Updated photos of the applicant.
  • list items Proof of Identity: Government-issued IDs like voter ID, passport, or Aadhar card.
  • list items Proof of Address: Verification of the applicant's residential address through utility bills or passports.
  • list items Educational Certificates: Documents of previous educational achievements including 10th and 12th grade marks.
  • list items Competitive Exam Results: Scores from standardized tests such as GMAT, IELTS, TOEFL, GRE, when necessary.
  • list items Cost Breakdown: Comprehensive list of all educational expenses covered by the loan.
  • list items Statement of Purpose: An essay detailing the applicant's educational and career goals.
  • list items Proof of Age: Birth certificate or high school diploma.
  • list items Income Proof: Documentation showing the applicant's or co-applicant's income.
  • list items Bank Statements: Bank statements from the last six months.

    •  

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

  • list items Co-Applicant Form: Fully filled and signed form by the co-applicant.
  • list items Passport-sized Photos: Recent photos of the co-applicant.
  • list items Proof of Identity and Address: Valid identification and address verification documents.
  • list items Income Verification: Recent financial documents like salary slips, tax returns, Form 16, or business financial statements depending on employment status.
  • list items Bank Statements: Statements covering the past six to eight months.
  • list items Proof of Relationship with the Student: Documents like marriage or birth certificates.

    •  

    Essential Property Documents (if collateral is required):

  • list items Property Title Deeds: Legal documents proving property ownership.
  • list items Property Valuation Certificate: Appraisal by a certified valuer.
  • list items Encumbrance Certificate: Certification that the property is free from liens.
  • list items Proof of Property Tax Payments: Evidence of paid property taxes.
  • list items No Objection Certificate (NOC): Required from the relevant authority or housing society.

    •  

    Additional Documentation (as needed):

  • list items Income Tax Returns: For co-applicants, covering the last two to three years.
  • list items Verification of Current Debts: Documents related to existing financial obligations.
  • list items Attestation of Academic Gaps: Documentation explaining any educational interruptions.  

    • Find the Complete List of Documents Required for Education Loan 

    Check Your Education Loan Eligibility

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    Acceptable Collaterals for an Education Loan in Punjab :

    For secured education loans in Punjab, additional documentation required to prove collateral includes:

  • list items Residential Property: Houses, apartments, or plots in Punjab can be pledged as collateral for an education loan. It's important that these properties have clear, dispute-free titles to facilitate the loan process.
  • list items Commercial Real Estate: Like residential properties, commercial real estate can also be used as collateral, provided that you have clear ownership and meet all legal requirements.
  • list items Fixed Deposits (FDs): Fixed Deposits with banks can be pledged as collateral. The loan value typically corresponds to a specific percentage or the entire value of the FD, providing financial leeway.
  • list items Life Insurance Plans: The cash surrender value of life insurance policies can be utilized as collateral for education loans, with the loan amount usually being a proportion of the policy's value.
  • list items Government Bonds: Investments in National Savings Bonds or other government securities can serve as collateral, offering substantial financial support for educational endeavors.
  • list items Land or Agricultural Property: Such properties can also be used as collateral if they meet the lender's criteria and are free of any legal encumbrances, thus providing additional financial avenues for funding education.  

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

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    Education Loan Interest Rate in Punjab 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 Punjab 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 summary, education loans in Punjab play a crucial role in supporting students pursuing higher education locally and internationally. Various banks offer tailored loan packages that cover extensive educational expenses, aiding students without immediate financial burdens. Applicants should thoroughly compare loan terms, prepare necessary documentation, and understand reasons for potential rejections to enhance approval chances. By wisely choosing and managing their education loans, students can invest effectively in their academic and future career growth.

     

    In Punjab 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

    Can I apply for an education loan in Punjab to study part-time or online courses?

    Most banks provide loans for full-time courses. However, some banks might offer loans for part-time or online courses if they are affiliated with recognized universities. It's important to consult with individual banks for their specific policies.

    How long does it take to get an education loan approved in Punjab?

    The approval time can vary from a few days to a few weeks, depending on the bank and the completeness of the application documentation. Ensuring all documents are submitted correctly can expedite the process.

    What is a moratorium period, and how does it work for education loans in Punjab?

    The moratorium period, often referred to as a holiday period, is the time during which the borrower is not required to make any repayments. This period usually lasts until 6 to 12 months after course completion, allowing the borrower time to find employment.

    Are there any special education loan schemes for women or disadvantaged groups in Punjab?

    Yes, some banks offer special incentives and lower interest rates for women and students from economically weaker sections. Government schemes like the Central Sector Interest Subsidy Scheme also provide benefits to disadvantaged students.

    Can I take an education loan from Punjab to study abroad?

    Yes, many banks in Punjab offer education loans for students wishing to study abroad. These loans typically cover higher amounts and include travel costs and health insurance, depending on the bank.

    Calculate your Education Loan EMI

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