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Tata Capital Finance Limited Education Loan

Last Modified : September 14, 2018

Tata Capital Finance Limited extends education loan under its segment of personal loans. The loan is extended with maximum loan amount of INR 15 Lacs to help students meet their financial needs.

The students are offered Education Loan for India and Abroad if they secure admission in a recognized institute and course in India or overseas.

Why Tata Capital Finance Limited?

The loan is offered with easy and hassle free loan disbursement, speedy approval and minimum documentation process. The NBFC customises your loan for every type of course and institution, hence, making it easy for the borrower to avail loan.

Are you eligible for Tata Capital Education Loan?

  • Indian National. Student must be an Indian national or NRI having Indian passport
  • 10+2. He/ she must have qualified 10+2 or equivalent examination
  • Age Limit. He/ she must be of 16 to 26 years of age
  • Co-signer. A co-signer is must to apply for education loan

How to apply for Tata Capital Education Loan?

Applicant must follow the points mentioned below to avail the online application form facility of Tata Capital Education Loan

  • Visit the official website.
  • Ensure you research and study about all the variants of education loan offered
  • Click on the ‘Apply for loan’ tab in top right corner of the page.
  • Fill in necessary details and submit the form

Post successful filling of enquiry form, NBFCs representative will contact you and guide you for further loan procedures.

Below mentioned are all aspects of education loan offered by Tata Capital Finance Limited. Have a look:

Tata Capital Finance limited offers education loan to students pursuing their graduate or post graduate degree/diploma courses from institutes in India or abroad.

What makes you eligible for Tata Capital Education Loan?

  • Student must be an Indian National.
  • He/ she should fall in the age bracket of 16 to 26 years old
  • He/ she must be 10+2 qualified.
  • One must have secured required marks in last qualifying examination
  • Parents or applicant himself/herself should have a stable income

Present Rate of Interest

Rate of interest charged by the bank ranges from 11% to 15% on all amounts

Quick Facts about Tata Capital Education Loan

Margin5% to 15%
Maximum Loan LimitINR 15 Lacs
SecurityNo collateral required
Moratorium PeriodCourse period + 6 months
Repayment (Maximum)Repayment of the loan can be done after the moratorium period by mode of EMI Maximum repayment loan: 5 to 7 years
Prepayment Charges2% (of the amount paid) + GST

Additional Facts about Tata Capital Education Loan

  • Processing fee varies for applicants and their application status
  • 2% of the loan amount is charged as late repayment
  • Zero collateral security
  • 72 hour loan disbursal process

Courses covered under Tata Capital Education Loan

  • Graduate/ postgraduate degree/diploma courses conducted by renowned institutions/ universities recognized by UGC, Government, AICTE, AIBMS or ICMR.
  • Academic courses such as CA, CFA, and ICWAI.
  • Courses conducted by NIFT, IITs, IIMs, XLRI, IISc, and NID that are approved by Avanse
  • Vocational education or training courses approved by Avanse
  • Courses for noble cause such as teaching training (like B.Ed.), nursing courses, and from other training institutions approved by Central Government or by State Government

Expenses covered under Tata Capital Education Loan

  • Tuition Fee
  • Examination/ Library/ Laboratory Fee
  • Hostel Fee 
  • Cost of books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)
  • Travel expenses

Documents required for Tata Capital Education Loan

  • Admission letter/ Cost of study statement from the institute
  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph of applicant, co-applicant, and guarantor.
  • Copies of qualifying courses.
  • Mark sheet of SSC and HSC
  • Income proof and/or copy of income tax return file of co-applicant, parents, and guarantor (if any).
  • Details of collateral security along with government approved valuation certificate (if any)
  • Bank account statement of the applicant.
  • Copy of passport and visa for abroad courses

FAQs

Q: Does NBFC’s offer any interest subsidy scheme along with its education loan variant/s?

Answer: No, NBFCs does not provide any interest subsidy scheme initiated by the government.

Q: In whose name is the loan granted?

Answer: The loan is granted in the name of the student

Q: What is the age limit for availing loan from Tata Capital Finance Limited ?

Answer: Student must be of 16 to 26 years and above while applying for education loan from Tata Capital Finance Limited. He/ she should also clear the other eligibility criteria’s stated by Tata Capital Finance Limited

Q: What does margin on any loan mean?

Answer: Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

Q: Where can I avail Tata Capital Finance Limited Education Loan?

Answer: You can fill the application form online from the official website or contact the branch for the same. 

Q: What are the basis on which education loan application is evaluated?

Answer: Tata Capital Finance Limited considers various parameters when evaluating the education loan application. Some of these parameters are popularity of course, recognized institute, credit score of borrower/co-borrower, etc.

Q: My loan application was rejected once, can I apply again?

Answer: Yes, you can apply again. It is necessary that you have completed all your document requirements and fulfil the eligibility criteria stated by Tata Capital Finance Limited.

Q: Is there any minimum aggregate marks to meet the eligibility criteria to avail Tata Capital Finance Limited education loan?

Answer: No, there are no minimum aggregate marks stated by the Tata Capital Finance Limited in regard of eligibility to apply for the loan. 

Q: What is the discount/ rebate offered by Tata Capital Finance Limited?

Answer: There are no discounts/ rebates stated by Tata Capital Finance Limited 

Q: What all is included in tangible collateral security?

Answer: Tata Capital Finance Limited does not asks tangible collateral security. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

Q: Is collateral security mandatory for Tata Capital Finance Limited Education Loan?

Answer: No, Tata Capital Finance Limited offers unsecured loans as well. They are limited to certain amount of loan, for which borrowers does not require any security.

Q: Is scholarship or assistantship included in the margin?

Answer: Tata Capital Finance Limited charges 5% to 15% margin depending on the loan and credit worthiness of the applicant.

Q: What is Moratorium Period?

Answer: Course Period plus one year, or six months after getting a job

Q: What is tenure of an education loan?

Answer: Tenure of education loan provided by Tata Capital Finance Limited is 5-7 years

Q: What does MCLR stands for?

Answer: MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of a financial institution below which it cannot lend.

Q: What all expenses are covered under this course?

Answer: Expenses covered by Tata Capital Finance Limited education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.

Q: Will my travel expense will be covered if I take loan from Tata Capital Finance Limited?

Answer: Yes, travel expenses are covered under this loan

Q: I have taken admission through management quota. Am I eligible?

Answer: There is no such provision mentioned by Tata Capital Finance Limited. You may contact the particular financial institution regarding the same.

Q: What do you mean by reputed or recognized institutes?

Answer: Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, NBFC’s provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

Q: Are there any special benefits if I have secured admission to one of the top premier institutes?

Answer: Tata Capital Finance Limited does not provide any special benefits to students securing admission to top premier institutes

Q: What is the processing fee or prepayment charges?

Answer: Processing fee of education loan offered by Tata Capital Finance Limited varies for different applicants.

Q: Will cost of my computer be covered under the loan sanctioned?

Answer: Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course. 

Q: Why is Pan Card necessary?

Answer: Pan Card is one of the mandatory document required by NBFC these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers

Q: Are diploma or certificate courses considered under Tata Capital Finance Limited education Loan (both for India and Abroad)?

Answer: Yes diploma or certificate courses are eligible under Tata Capital Finance Limited Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping

Q: Is a co-borrower necessary for loan?

Answer: Yes, it is mandatory to have a co-borrower to avail loan from Tata Capital Finance Limited.

Q: Does Tata Capital Finance Limited accept multi-city/multiple co-applicants?

Answer: Yes. If the primary co-applicant fails to fulfil the eligibility criteria, the borrower can add more co-applicants for the loan.

Q: Who can be my co-borrower?

Answer: Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income in India, and a good credit history.

Q: What all documents are required from the co-borrower?

Answer: Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).

Q: What is the KYC requirement in education loan?

Answer: KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

Q: What are maximum term for repayment?

Answer: Maximum term for repayment is 5-7 years

Q: How can I repay the loan?

Answer: You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

Q: What is EMI? How are they calculated?

Answer: EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]

Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.

Or simply you can use the EMI calculator provision available on official website.

Q: Is the loan disbursed in name of individual applicant or to the institute/ university directly?

Answer: The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

Q: If I am unable to complete my course in given tenure, will my repayment term be extended?

Answer: It is completely on the financial institution’s discretion to extend the moratorium period or not. You can contact your nearest branch for the same.

Q: Can applicant transfer his/her education loan to Tata Capital Finance Limited?

Answer: No such clause is mentioned by Bajaj Finance Limited. You may contact the branch for the same.

Q: What is method of application of interest on education loan?

Answer: The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance. 

Q: What is interest rate of education loan?

Answer: Interest rate charged by Tata Capital Finance Limited for all loan amounts ranges from 11% to 15%

Q: Can ROI change during period of my course?

Answer: Yes, there is a possibility that interest rate changes during course period as it is offered at floating rates, which might change due to external conditions and internal policies

Q: What is employment verification in an education loan?

Answer: Tata Capital Finance Limited takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If it fails to cross verify every detail provided, it might reject the loan application.

Q: Are there any tax benefits in education loans?

Answer: Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier)

Q: Can I repay my loan in foreign currency even if my financial institution is in India?

Answer: Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) NBFC might charge an additional currency conversion fee as per RBI regulations.

Q: Why do NBFC’s require insurance policy as security?

Answer: The NBFC’s require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, NBFC recovers the amount from the insurance policy

Q: What is credit score? Is it important for education loan?

Answer: Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, NBFC’s calculate it by considering factors such as University, College and the Course of admission. The academic background of student and credit history of co-borrower is also considered.

Q: Are NRIs eligible for the education loan?

Answer: NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

Q: Is Visa a necessary document for studying abroad?

Answer: Visa is needed as a document proof but it is not a sole requirement.

Q: What all procedures do one have to go through while applying for abroad?

Answer: A student who is applying for studying abroad have to give necessary documents required by the NBFC. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.

Q: If a student have any query, where or whom to contact?

Answer: student can reach out to the nearest branch in case of any query.

Customer Care Number: 1800 209 6060

Customer Care Id: contactus@tatacapital.com/ customercare@tatacapital.com