Education is the best way to secure future. Undoubtedly, marks and grades are important but not enough. Yes, apart from good grades, a strong financial background is also important.
What if the financial status is not strong?
An education loan is the best solution.
But, a better choice of the education loan can be a better solution.
What are the factors you look for when choosing any loan? You may read this article for other loans and factors to look for when making a choice.
Here are the top Banks offering the best education loans:
There are very few banks which offer specialized medical education loan and HDFC is one of them with best plans. Any student who has secured admission in a medical college is eligible for this loan. The course can be MBBS or MD. The maximum amount of loan offered is of Rs 10 Lakh. For an amount, up to Rs 7.5 Lakh, no collateral is required. Amount exceeding Rs 7.5 Lakh, easy collateral options are available. A fixed deposit with the bank or a long-term insurance policy can be used as a collateral. There are other options also. The loans can be repaid within 15 years after the completion of the course. HDFC also offers lucrative interest rates for premier universities. Apart from all this, being a private sector bank it offers various privileges like door-step service, lower interest rate, easy EMI, flexible repayment, etc.
2. SBI-State Bank of India
The biggest public sector bank of the country has a promising offer. It is one of the few banks to present specialized loan for medical studies. There are two major divisions: Student loan and Scholar loan. The maximum amount of loan the bank provides is of Rs 10 Lakh. There is no need of any collateral security up to an amount of Rs 7.5 Lakh. For an amount exceeding that, a collateral security is required. SBI tries to cover almost all the expenses incurred during the course. The expense may include tuition fees, laboratory fees, books, journals, exam fees, etc. The variant also has a difference. The scholar education loan is a better option for the scholastic students. Under this loan, if the applicant has secured admission in any of the 105 premier institutions listed by the Bank, the loan amount is extended to Rs 30 Lakh. The bank offers 100% financing and the loan is sanction faster. For both loans, the repayment period is of 15 years.
3. Bank of Baroda
Bank of Baroda also provides the education loan for medical students. The scheme under which the loan is available is known as “Baroda Gyan”. The maximum amount of loan is Rs 10 Lakh. There is no need for collateral security for an amount up to Rs 4 Lakh, however, collateral security is must for any amount exceeding 4 Lakh. The loan can be paid in maximum 120 installments for an amount up to Rs 7.5 Lakh. Amount exceeding Rs 7.5 Lakh, the installments are 180, which means 10 years and 15 years respectively. The courses include graduate and postgraduate. A concession of 1% interest rate is given to students who secure admission in a premier institution listed by the Bank. An additional 0.5 % concession on the interest rate is given to girls.
4. IDBI Bank
The bank whose main objective is to fund the industrial development and the project related to it also offers education loans for medical students and other professional courses. The maximum drawing power is Rs 10 Lakh. There is no need for collateral security for an amount up to Rs 4 Lakh. IDBI focuses on students who have secured admission through a competitive exam or under management quota. For students of the premier institution,m IDBI offers the loan up to Rs 30 Lakh or 95% of the entire program. Mutual transfer from another bank to IDBI bank is also possible. A concession is also offered to the girl student.
5.Punjab National Bank
A bank which is a renowned and reputed bank in the financial sector, offer loan to aspiring medical students. The loan covers all the expenses that are mandatory to complete the opted course like books, accommodation and hostel fees, refundable deposits, examination fees. The maximum amount of loan sanctioned is Rs 10 Lakh. Like other banks, the repayment period is 10 years or 120 installments at max for an amount up to Rs 7.5 Lakh. The repayment period is 15 years or 180 installments for an amount exceeding 7.5 Lakhs. Collateral security is mandatory for an amount exceeding 7.5 Lakhs.
6. Bank of India
Bank of India provides financial assistance to the students who have secured admission in a medical institute. The course can be MBBS or MD. The course covers all the expenses incurred till the completion of the course. The loan is provided on strict criteria, it may assess the financial condition of the parents/caretaker, admission secured should be recognized by the national boards which follow government regulations. A maximum of Rs 10 Lakh can be given as a loan to the applicant for studying in India. There is no need of collateral security for an amount up to Rs 4 Lakhs, however, for an amount up to 7.5 Lakhs 5% margin is required.
7. Avanse Education Loan
A new name for many, right?
Avanse is not a complete bank but it is a financial service provider. It is a venture of the DHFL which mainly focuses on funding house developments. Avanse being a private sector bank has less restriction and is independent because of the less interference of the dividends. The bank offers massive loan of up to Rs 50 Lakhs to study in India. For loans up to Rs 4 Lakh, the estimated rate of interest rate is 11.5% and for an amount up to 7.5 Lakhs or above, the interest rate is uniform with minor adjustments. The margin requirement is 100% for any type of loan. Even, the repayment period is fixed for 10 years irrespective of any amount borrowed. The bank also levies some prepayment charges, rounding to 2%. The payment has to start either after 6 months of course completion or 3 months of getting a job, whichever earlier.