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Bajaj Finance Limited Education Loan

Last Modified : September 14, 2018

Bajaj Finserv Education Loan for Higher Studies is personal loan scheme offered by Bajaj Finance Limited. The loan scheme is extended to provide financial assistance with loan amount upto INR 25 Lacs for studies in India or overseas.

Why Bajaj Finance Limited?

Flexible loan terms, instant approval, 1 day loan processing time, and minimum documentation hassle are some key factors that lure borrowers towards Bajaj Finserv Education Loan.

Are you eligible for Bajaj Finserv 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 23 to 58 years of age
  • Co-signer. A co-signer is must to apply for education loan from Bajaj Finance Limited

How to apply for Bajaj Finserv Education Loan?

Bajaj Finance Limited offers online loan facility to ease students and offer them privilege of filling application from home. Following are the points that one needs to follow while applying for education loan:

  • Visit the official website.
  • Ensure you research and study about all the variants of education loan offered
  • Click on the ‘Apply now’ tab
  • You will be given an option to select whether you are salaried or unsalaried
  • Choose one of these options.
  • Fill in necessary details and submit the form

Post this, a representative will contact you and guide you for further loan related procedure and documents required

Have a look at all the aspects of Bajaj Finserv Education Loan curated for you below:

Bajaj Finance Limited offers this variant of education loan to students aspiring to pursue higher studies in India or overseas. With 100% finance facility, Bajaj Finance Limited is able to run strong in education loan industry.

What makes you eligible for Bajaj Finserv Education Loan?

  • Student must be an Indian National.
  • He/ she must be of 23 to 58 years of age
  • One must have qualified 10+2 or equivalent with minimum aggregate marks
  • Applicant must have secured admission in an eligible course and institute

Present Rate of Interest

Interest rate charged by Bajaj Finance Limited is 12.99% onwards for all loan amounts

Quick Facts about Bajaj Finserv Education Loan

MarginNil, 100% finance facility
Maximum Loan LimitINR 25 Lacs
SecurityNo collateral security
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 years
Prepayment Charges2% + taxes on part-payment amount paid*

Additional Facts about Bajaj Finserv Education Loan

  • 2.25 to 3% processing charges implied
  • 2.38% on loan amount charged as penal charges for late repayment
  • Zero margin
  • Zero collateral security charged
  • 5 minutes loan approval time
  • 24 hour loan disbursal time

Courses covered under Bajaj Finserv Education Loan

  • Graduate/ postgraduate degree (Masters or Ph.D.) /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 Bajaj Finserv Education Loan

  • Tuition Fee
  • Examination Fee
  • 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 Bajaj Finserv Education Loan

  • Admission letter with all essential details
  • 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 Bajaj Finserv Limited?

Answer: Student must be of 23 to 58  years and above while applying for education loan from Bajaj Finserv Limited. He/ she should also clear the other eligibility criteria’s stated by Bajaj Finserv 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 Bajaj Finserv 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: Bajaj Finserv 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 Bajaj Finserv Limited.

Q: Is there any minimum aggregate marks to meet the eligibility criteria to avail Bajaj Finserv Limited education loan?

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

Q: What is the discount/ rebate offered by Bajaj Finserv Limited?

Answer: There are no discounts/ rebates stated by Bajaj Finserv Limited

Q: What all is included in tangible collateral security?

Answer: Bajaj Finserv Limited asks tangible collateral security for all amounts of loan.  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 Bajaj Finserv Limited Education Loan?

Answer: No, Bajaj Finserv 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: NBFCs does not charge any margin amount. They provide education loan with 100% finance facility.

Q: What is the 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 Bajaj Finserv Limited is 5 years

Q: What does MCLR stand 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 are all expenses covered under this course?

Answer: Expenses covered by Bajaj Finserv 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 Bajaj Finserv 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 Bajaj Finserv 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: Bajaj Finserv 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: The education loan offered by Bajaj Finserv Limited carry 2.25 to 3% processing fee.

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 Bajaj Finserv Limited education Loan (both for India and Abroad)?

Answer: Yes diploma or certificate courses are eligible under Bajaj Finserv 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 Bajaj Finserv Limited.

Q: Does Bajaj Finserv 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.

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 are all documents 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 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 Bajaj Finserv 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 the 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 Bajaj Finserv Limited for all loan amounts ranges from 12.99 onwards

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: Bajaj Finserv 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: 022-62463333

Customer Care Id: wecare@bajajfinserv.in