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What is the Process to Get an Education Loan for Studying at IIT?

Highlights

  • Eyeing an admission to IIT but don’t have funds to pursue your dream?
  • Don’t worry, just crack the entrance test and apply for an education loan for admission to this reputed institute

Indian Institute of Technology (IIT) is a dream destination for students wanting to pursue engineering. The study expenses can be pretty high and make it virtually impossible for students whose family is not financially strong. If your situation is such, you could look for education loans to pursue your dream of studying at IIT. You can borrow money from the bank to meet your expenses for admission and other expenses during the course. Read the article below and know what is the process to get a loan for admission to any of the IITs India has.

Check the List of IIT institutes Approved by Banks for Education Loan

First, you need to check the name of your institution. Because the bank classifies the loan into different categories. If your institution comes under List A, you can borrow a high loan amount even without collateral. Whereas List C institutes allow you to borrow INR 7.5 lakh unsecured loan. Loans above the same limit will require you to submit the collateral.

Documents Required

You are required to submit a list of documents along with your duly filled application form and 2 passport size photographs, see the documents mentioned below.

  • Aadhaar Card
  • PAN Card (Parent or Guardian)
  • Passport
  • Admission Letter
  • Salary Slip/Certificate
  • ITR Report
  • Last 6 months bank statement
  • Collateral documents such as property papers, Fixed Deposit receipts, Insurance, etc.
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Note – Income documents like salary slip/certificate, ITR report, last 6 months bank statement are to submitted by the

Once these documents are verified by the lender, the loan processing comes to its next procedure i.e. the processing fee accounting for upto 1% of the loan amount. A few lenders don’t charge a processing fee.

Before applying for an education loan, look at a few factors

Interest Rate: After comparing rates from the other lender, you must make the final so that you won’t regret getting a high-interest rate. See the below banks which offer you an education loan for IIT.

BankInterest Rate
State Bank of India (SBI)6.90% - 9.30%
ICICI Bank11.25% - 11.75%
Bank of Baroda7.00% - 10.10%
HDFC Bank9.65% - 13.25%
Union Bank of India7.20% - 10.45%
Canara Bank6.90% - 9.30%
Axis Bank13.70% - 15.20%
YES BANK12.00% - 14.00%
Bank of Maharashtra7.20% - 9.05%

Moratorium Period: The repayment holiday is provided when the student course period is over. It is done to give some time to the student to find a job for the payment of the borrowed amount. The repayment holiday spans for a maximum of 12 months. However, you can make interest payments during the moratorium period. If you don’t, the interest will be added to the loan amount and go through an increased EMI, or the tenure is enhanced.

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Personal Loan Interest Rates September 2020
Fullerton India14.00% - 33.00%
HDFC Bank10.75% - 21.45%
ICICI Bank10.75% - 18.49%
IndusInd Bank11.25%
Kotak Bank10.99% - 20.99%
RBL17.50% - 24.00%
Standard Chartered Bank11.00% - 15.00%
Tata Capital10.99% - 18.00%
Home Loan Interest Rates September 2020
Axis Bank7.75% - 8.55%
Bank of Baroda7.00% - 8.40%
Citibank8.20%
HDFC6.95% - 8.00%
ICICI Bank6.95% - 8.05%
Indiabulls Housing Finance Limited8.80% - 11.05%
Kotak Bank7.20% - 9.30%
LIC Housing6.90% - 7.90%
Piramal Capital & Housing Finance9.00% - 9.10%
PNB Housing Finance8.60% - 9.45%
Reliance Home Finance8.75% - 14.00%
State Bank of India/SBI6.95% - 7.60%
Tata Capital9.20% - 9.35%