Empower your future with easy financing for studies in India or abroad.
Empower your future with our Education Loan options, designed to cover tuition, living expenses, and other educational costs for studying in India or abroad. Whether you're aiming for a top-tier institution or pursuing specialized courses, our loans ensure that financial barriers don't stand in the way of your academic aspirations.
At Fincrest Fintech, we simplify financial solutions to help you achieve your goals with ease. Our commitment to transparency, speed, and customer-centric services means we're here to support you every step of the way. Reach out today and take the first step toward a bright and successful future.
Features and Benefits of Education Loan
- Attractive Interest Rate
Flexible Loan Amount Eligibility
Education loans can be up to Rs. 1 crore.
Flexible Loan Tenure and Moratorium Period
Repayment usually begins after the course is completed, allowing students time to find employment before starting repayments. During this period, the borrower pays simple interest on the amount disbursed.
Prepayment
There are no penalties for prepaying the loan.
Collateral and Non-Collateral Loans
Depending on the loan amount, some education loans may require collateral, while smaller loans might not need any security. Collateral can be in the form of immovable assets, deposits, or securities.
Tax Benefits
The interest paid on education loans may be eligible for tax deductions under Section 80E of the Income Tax Act, providing potential financial relief.
Co-applicant
The loan applicant's parents, siblings, spouse, parents-in-law, uncle, aunt, first cousin, brother-in-law, or sister-in-law can be a co-applicant.
Expenses
Education loans can cover a wide range of expenses, including tuition fees, hostel charges, travel costs, insurance premiums, living expenses, the purchase of computers, and uniforms.
Multiple Courses and Institutions
Education loans are available for a wide range of courses, from school education to higher studies, at both domestic and international institutions.
Eligibility Criteria – Education Loan
TEducation loan eligibility criteria can vary based on factors like the country of study, lender requirements, and the type of loan. However, the following factors typically influence eligibility.
- Age Requirements
Most lenders have a minimum and maximum age requirement for applicants. You usually need to be at least 18 years old to apply for an education loan.
- Eligible Course or Program
Education loans are often linked to specific courses or programs. Lenders may have a list of approved institutions and programs eligible for funding.
- Admission Confirmation
Many lenders require proof of admission to an eligible institution before approving your loan application.
- Academic Performance
A good academic record can improve eligibility. Some lenders assess your academic performance as part of their eligibility criteria, including your grades from high school or previous education.
- Co-borrower or Guarantor
If you have limited credit history or income, lenders may require a co-borrower or guarantor (often a parent or guardian) to share the repayment responsibility in case you are unable to pay.
- Credit History
Your credit history, along with that of your co-borrower or guarantor, can significantly affect your eligibility. A positive credit history increases your chances of loan approval and better loan terms.
- Income and Financial Stability
A stable income source, preferably from parents, can increase the chances of loan approval. Some lenders consider your income or that of your co-borrower to assess your ability to repay the loan.
- Loan Amount
The loan amount you request in relation to the cost of your program can influence your eligibility. Lenders may have maximum limits on the loan amount they are willing to approve.
- Collateral or Security
For larger loan amounts, lenders may require collateral, such as property or other valuable assets, to secure the loan.
- Required Documentation
You'll need to provide various documents during the application process, such as proof of identity, proof of admission, income statements, and more.
Documentation for Education Loan
- KYC Documents / Identification / Address proof
Aadhar Card / PAN card / Electricity Bill. - Admission letter
An offer letter or admission letter from the educational institution. - Income proof
Salary slips, bank statements, Form 16, income tax returns, and financial statements
Employment certificate from applicant and co-applicant. - Course cost breakdown
A schedule of expenses for the course. - Academic records
Mark sheets or passing certificates for 10th, 12th, and graduation. - Collateral
Documents for collateral security, if applicable. - Guarantor documents
Documents for a guarantor, if applicable
Frequently Asked Questions
Education loans cover tuition fees, hostel charges, books, travel expenses, and other academic-related costs.
A moratorium period is a grace period during which you don’t need to repay the loan. It typically lasts until the course completion plus 6-12 months.
Yes, under Section 80E of the Income Tax Act, the interest paid on education loans is tax-deductible for up to 8 years.
Yes, many lenders offer education loans for international studies, covering expenses such as tuition, travel, and living costs.
The repayment tenure for education loans ranges from 5 to 15 years, depending on the lender and loan amount.
Interest rates vary by lender and can range from 8% to 12% per annum, depending on the loan amount and tenure.
Yes, most education loans require a co-applicant, such as a parent or guardian, who serves as a guarantor.
Defaulting can affect your credit score and may lead to legal action. Communicate with your lender to explore restructuring options if needed.
Yes, education loans can be prepaid, and many lenders do not charge prepayment penalties for these loans.
Missing EMIs can impact your credit score and lead to penalties. Prolonged defaults may result in the lender initiating legal action or repossessing the property.
You need to submit an application form along with required documents, such as admission proof, fee structure, academic records, and income proof of the co-applicant. The lender will assess your application before disbursing the loan.