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Get education loans at Mumbai banks and NBFCs with quick processing and faster disbursals. Minimal paperwork and higher loan amounts. Higher loan amounts provided for education done abroad. Apply now through CreditMantri!
Education loans in Mumbai are provided by almost all major banks and NBFC’s present in the city. There are many reasons why you should consider taking an education loan. An education loan can pave way for stepping into a reputed college or university or pursuing higher studies abroad.
Located on India’s west coast, Mumbai is the largest city and financial power house of the country. Ranked among the fastest countries in the world for business start-ups, the city reverberates with full of energy and contributes to the economy of the nation in the fields of IT, textiles, gems and jewellery, leather processing, entertainment and healthcare.
Loan Amount: The loan amount generally depends on the courses taken by the student or the education institution where you have secured the admission. The range of the loan amount is up to 10 lakhs for studies in India and 25 lakhs or more for studies abroad.
Margin: Most of the banks do not ask for a margin for loans up to INR 4 Lakhs. Beyond that amount, the banks ask for margin for the education loan in Mumbai. The range of the margin can vary as per the banks’ rules.
Repayment Period: The tenure of the loan is fixed based on the loan amount and it also depends on the internal policies of the banks.
Moratorium Period: The moratorium period is generally up to 6 months after you have secured a job or 12 months after completing your education. It is purely decided as per the rules of the banks.
Security: The parents or the guardian will be the co-applicant of the loan and the primary debtor. Tangible collateral will be accepted as security by the bank with the third-party guarantee. No security required for loans up to 4 Lakhs.
Processing Fees: Most of the banks do not charge processing fees for education loans in Mumbai. However, check with the bank before applying for the loan.
The courses covered under education loan are graduation, post-graduation, including technical/professional courses with employment potentials conducted by colleges/universities approved by UGC/Government, AICTE/Department of Electronics/IMC, autonomous institutions like IIM, IIT, etc. Regular or diploma courses approved by the Government too are covered.
For studies abroad, job-oriented professional graduation and post-graduation courses such as MBA, MS, MCA etc. are covered.
Expenses covered under education loan are payment of course fees, purchase of books, equipment, instruments, uniform, payment of hostel fees, examination fees, study tools, and passage expenses, for study abroad and various other miscellaneous fees.
Following are some of the benefits that you can get from applying for an education loan in Mumbai.
The interest rates vary from bank to bank. You can get the cheapest interest rate on education loan in Mumbaiif you have secured admission in the premier institutions listed by the bank and have a good credit history or the good credit score of your co-borrowers. The interest rate generally starts from 9.5% onwards. The interest rates are purely decided by the banks and it is subject to change as per the lenders’ internal policies.
Once your loan is approved, the banks levy various fees and charges while the education loan is disbursed. You will be notified about the charges before sanctioning of the loan and only after your acknowledgement, it will be disbursed to your account. Following are some of the fees and charges levied on an education loan in Mumbai.
Processing fee: For processing your education loan, banks charge a certain percentage of the loan amount as the fee and some banks do not charge anything for processing the education loan. This fee could normally range between 1% to2% of the loan amount.
Stamp Duty: it is defined as the duty paid to the concerned authority on different documents used in the loan process.
Late Payment: If you are unable to pay the education loan on time, you may have to pay a penalty to the bank.
Loan cancellation: If you have obtained funds from another source and decided to cancel the loan after the approval, you may have to pay a penalty for your action. It could generally be up to 2% of your loan amount.
Before applying for an education loan in Mumbai, it is important to check the eligibility criteria in order avoid the rejection. Following are the eligibility criteria that you must be qualified for
Documentation is an important process that banks do before approving your education loan. To go through a successful documentation, make a checklist of documents. Following are the most important documents required for applying for an education loan in Mumbai.
An education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.
The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. The moratorium period is the time of your education plus 6 months or 1 year given in which time you can search and get a job. It is only after this time that you are expected to pay the loan.
The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.
This way your loan amount at the time of graduation is drastically reduced.
There are 4 types of education loans in India
1. Under graduate education loan
These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.
2. Post graduate education loan
These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.
This question does not have a singular answer. The best lender is easily the one which suits all your requirements! You need to comply to various criteria to qualify for an education loan. You might be eligible for an education loan with one lender at a lower interest rate where as another lender might offer you value added services but a higher interest rate.
How to apply for education loan in Mumbai
Applying for an education loan in Mumbaiis simple and easy. You can apply either online or offline. Online: Visit the nearest branch of any bank where you wish to apply for the education loan and meet the bank’s representative who will guide you through the process. You may have to fill out the application form and submit the required documents. Once the documents and personal details are verified, your application will be processed for approval.
You can also download the application from the official website of the bank and submit it to the nearest branch of the bank.
Offline: Applying for an education loan offline is much simple and easy. While some banks may allow you apply directly on the website, some banks request you to leave your personal and contact details and an executive from the bank will contact and guide you through the process. When you apply online with the bank where you have an account, sometimes you might also get instant e-approval based on the admission you have secured.
Applying Through CreditMantri
You can check your eligibility and apply for an education loan by signing up with CreditMantri. It is quick, simple and above all, free.
CreditMantri matches your credit and demographic profile to the lender's lending criteria and presents you a shortlist of only those lenders willing to lend to you based on your unique credit profile. In effect, we pre-screen your application to make sure you are likely to qualify as per the lender’s credit criteria. Hence, the chances of your education loan application getting approved is higher.
1. What is the interest charged during moratorium period?
Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.
2. Is a co-applicant needed for the education loan?
Yes, for all the full-time courses, a co-applicant is required. It could be your parents/guardian or relative.
3. What is the maximum tenure of education loan in Mumbai?
The maximum tenure on the education loan can be up to 15 years on higher loan amount.
4. Is collateral required to get the education loan in Mumbai?
For loans above 7.5 lakhs, you will have to pledge your collateral to secure the education loan in Mumbai.
5. Can I prepay the education loan?
Yes, you can, prepay the loan. Most banks do not charge a penalty on prepayment. However, it is better to check with the lender before applying for the loan.
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