Education loan FAQ (frequently asked questions)

1. What is an education loan?
   • An education loan is a type of loan designed to help students pay for their educational expenses such as tuition fees, accommodation, books, and other related costs.
2. Who is eligible for an education loan?
   • Generally, students who are pursuing higher education in India or abroad can apply for an education loan. However, eligibility criteria may differ among lenders.
3. What is the maximum amount that can be availed through an education loan?
   • The maximum amount that can be availed through an education loan may vary from lender to lender. However, in general, it can be up to 100% of the total cost of education.
4. What is the repayment period for an education loan?
   • The repayment period for an education loan may vary from lender to lender. However, it usually ranges from 5-15 years, depending on the loan amount and the lender’s policies.
5. Can education loans be used for studying abroad?
   • Yes, education loans can be used for studying abroad as well. In fact, many lenders have specific education loan schemes for students who wish to study abroad.
6. What documents are required to apply for an education loan?
   • The documents required to apply for an education loan may differ among lenders. However, some of the common documents required include mark sheets, admission letter, income proof of the co-applicant, KYC documents, etc.
7. Do education loans require collateral or security?
   • Education loans may or may not require collateral or security. In general, loans above a certain amount may require collateral or a guarantor.
8. What is the interest rate for education loans?
   • The interest rate for education loans may vary among lenders. However, it is usually lower than personal loans and credit card loans. The interest rate may also depend on the loan amount, the repayment period, and the borrower’s credit score.
9. Can education loans be prepaid?
   • Yes, education loans can be prepaid. However, some lenders may charge a prepayment penalty, while others may not.
10. Can a student apply for an education loan without a co-applicant?
    • In most cases, education loans require a co-applicant, who can be a parent, guardian, or spouse. However, some lenders may have specific schemes for students who wish to apply without a co-applicant.

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