Along with growing awareness about the importance of education to succeed in the knowledge economy, the cost of quality education too is growing fast.
In recent years, a large number of students, especially those pursuing professional courses in India or abroad, are availing of education loans. According to latest data from the Reserve Bank of India, education loans disbursed by Indian banks rose 51% to Rs 15,000 crore for the financial year ending March 2007 from Rs 9,962 crore at the end of March 2006.

An education loan typically has three repayment options :

Education loan with repayment moratorium. Many banks stipulate repayment within 1 year after completing the course or 6 months after getting a job, which ever is earlier. Interest alone is paid during the period of course. After the course completion, you start paying the actual EMI (principle and interest). You start repaying the loan through EMI immediately after loan disbursement, in which case you could get the loan at an interest rate lower by about 1 per cent.
The repayment conditions vary from bank to bank. So, talk with as many banks as possible to get the repayment option that suits your requirements.

Expenses covered by education loan :

The amount of education loan sanctioned is in relation to the expenses that you will incur while pursuing the course. The most common expenses covered include:
Fees payable to college/hostel Examination/Library/Laboratory fees Purchase of Books/Uniforms Caution Deposit/Building Fund/Refundable Deposit
Besides the above mentioned, there may be other costs incurred for the completion of the course. Like the cost of instruments, lap-top and other aids necessary for completion of the course. Some banks like SBI also offer loans up to Rs 50,000 for two-wheelers as part of education loan. Banks provide about 80% to 90% of the cost of education as education loan. But the important factor to check here is the education expenses that are recognized by your lender.

If part of your education (course fee, for example) is funded through a scholarship, you could still get a loan to cover the balance expenditure. In such cases, most banks include the scholarship amount as part of the total cost of education. This way you could end up financing the entire cost of your education through loans and scholarships.

To help you in getting the Bank Loan easily, NSHM Knowledge Campus has tied up with following banks for providing education loan facilities:
Indian Overseas Bank Syndicate Bank Punjab National Bank HDFC Bank

Documents required :

Different banks have different document requirements for granting education loans. But here are some of the documents you will typically have to submit along with your loan application:
Mark sheets of the last qualifying examination. Proof of admission/ scholarship. Schedule of expenses for the specified course. Bank account statement for the last six months. An income tax assessment order for the previous two years. A brief statement of assets and liabilities of the co-borrower, which is usually the parent or guardian, and proof of income, if any. Passport-size photographs.
Note: the specific list of documents varies from bank to bank.

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