Majority of working professionals in India are looking for multiple career opportunities using education as a powerful medium. However, the cost of education has become so high that it acts as a hindrance. For a popular course like MBA also, the average cost ranges from INR 12-15 lakh. So here come our banks as the saviours. Many banks and NBFCs in India have been offering Education Loans for long to cater to such needs.
There are many customized schemes in the market to fund the education of working professionals, viz. Oriental Bank of Commerce Working Professional Loan Scheme. People do keep savings and long term investment plans to fund education, still, a cash crunch might occur. Education Loans help in such scenarios by bridging the gap between shortfall and the required amount.
There are around 12 Public Sector and 21 Private Sector Banks in India, providing education loans for higher studies in both India and abroad. Whether it's a part-time or a full-time course, you can easily apply for an Education loan now. Some of the popular education loan schemes for working professionals are listed below.
OBC’s scheme is truly a blessing for all those who want to complete their education along with their job. In order to get access to this education loan you must satisfy the eligibility criteria as described below:
The maximum age limit is 55 years.
The applicant must be Indian national and employed either by the government or a corporate or an MNC.
You must secure admission in a professional programme and that programme should be offered by a reputed Indian or foreign institute.
|Loan Limit||Depends on Fee Structure|
|Interest Rate||Depends on Category of College|
The whole process requires a personal guarantee from the applicant. Auto collection, Standing Instructions or ECS facility should be used for paying EMI. The loan has to be repaid in a maximum time period of 15 years.
HDFC Credila Education Loan covers 100% costs including tuition fees and living costs and also provides you with door-step service. Their executive is there to help with all the documentation and application process required for applying for education loan. The rate of interest is low and the whole procedure is very convenient. The processing fee is around 1-1.25 % of the loan along with the GST.
|Processing Fee||1-1.25% of the total loan + 18% GST|
|Loan Limit||INR 50 Lakh|
|Repayment Period||Up to 12 years after the moratorium period|
Avanse is a popular NBFC, a non-banking financial institution, providing education loan to working professionals. The Avanse Education Loan for Working Professionals asks for the following criteria to be satisfied:
The age of the applicant should be at least 18 years with a minimum work experience of 2 years.
The applicant must be Indian national and employed either by the government or corporate or an MNC.
The applicant must secure admission in a professional programme and that programme should be offered by a reputed Indian or foreign institute.
|Minimum Limit||INR 1,00,000|
|Maximum Limit||Depends upon the applicant|
|Interest Rate||Avanse Base Rate + Spread (current Base Rate is 12.65%)|
|Margin||Nil. Provides 100% coverage.|
Multiple schemes in the market give you an opportunity to compare first and then apply. Also, make sure you repay your loan on time so that you earn a good credit score and get loans easily in future.