Around 2.5 Lakh Education Loans have been disbursed till 31 March 2019 and this shows the increasing demand for Education Loans in India. Usually, the interest rate is around 8.5% to 15% per annum for an Education Loan which makes it a beneficial option for students to fund their education.
An Education Loan not only funds just graduation and post-graduation courses but also supports the funding for various vocational courses and training programs. Whether its a management course or a vocational course, all of them can be funded with the help of an education loan. More and more students are relying on education loans to fund their education and according to a report, there are around 27.8 Lakh active education loan accounts. The number of students applying as well as the amount of education loan given is increasing day by day. As of September 2018, the average ticket size of new education loans was ₹8,95,000 against ₹7,08,000 at the end of FY18.
Some of the different types of courses for which you can avail an Education Loan are described below:
1. Graduation and Post-Graduation Courses in India
Almost all graduation and post-graduation courses are eligible for education loans in India provided you have secured admission to an institution. Streams like Engineering, Management, Law, Medical, Architecture, etc are covered under this. Almost all the expenses like accommodation, tuition fee, examination fee, books will be bear by the bank. The bank will provide you with a list of colleges for which you can avail an education loan. Moreover, if you are seeking admission in some of the premier institutions like IITs or IIMs, you will also be eligible for a rebate in interest rate. For instance, the State Bank of India offers a loan at 10.15%-10.90%, while Axis Bank Ltd gives an education loan at 13.50%-15% per annum. This will be even less if you are getting admission to prestigious colleges.
2. Graduation and Post-Graduation Courses Abroad
Studying abroad has become a trend nowadays. As of 2017, around 5.53 Lakh Indian students are studying abroad and this number is growing year by year. But studying abroad requires a huge fund. In order to overcome this problem, we have education loans. The terms and conditions related to education loan may be more stringent when the student seeks admission to a foreign college. Proofs like Visa approval, study permit, admission letter will have to be submitted.
Some of the different schemes for supporting Education Loan Abroad are:
3. Vocational and Training Courses
Education Loans can even be availed for the vocational and training courses. A lot of people think that being a traditionally non-academic course, it would not be possible to secure an education loan for them. But all the major banks like SBI, Bank of Baroda, PNB are ready to fund these courses. There are over 180 top courses in engineering and non-engineering sectors in around 1,700 Industrial Training Institutes. If you are planning to pursue any one of them then you can easily do so provided the course is from a well-known institution like ITIs, Polytechnics or the institutions aligned with the government scheme like National Skill Qualification Framework.
Some of the different schemes for funding Vocational Courses are:
- Vocational Education and Training Loan Scheme of Canara Bank
- Kaamgar Loan Scheme of PNB
- Allahabad Vocational Course Loan scheme
- Federal Careers Solution Loan Scheme
4. Diploma Courses
If your college falls in the list of approved colleges by the bank, then you can also avail an education loan for a diploma course. Various diplomas have become popular in India and this has made banks allow education loans for diplomas also.
Some of the banks which provide education loan for diplomas are:
5. Unconventional Courses
Unconventional courses like acting, sports, photography can also be funded very easily nowadays. Non-Banking Financial Institutions like Avanse and Auxillo are ready to give education loans for these types of courses. HDFC Credila also has highly beneficial schemes for these types of courses.
The cost of various courses is high nowadays but Education Loans are here to rescue. There is a scheme for almost every type of course.
So, pursue your dream course without worrying about the education expenditure.