What is the Process to Get an Education Loan for Studying at IIT?
Last Updated : June 2, 2020, 1:10 p.m.
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.
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.
| Bank | Interest Rate |
|---|---|
| State Bank of India (SBI) | 6.90% - 9.30% |
| ICICI Bank | 11.25% - 11.75% |
| Bank of Baroda | 6.85% - 9.95% |
| HDFC Bank | 9.25% - 13.68% |
| Union Bank of India | 7.20% - 10.45% |
| Canara Bank | 7.40% - 9.40% |
| Axis Bank | 13.70% - 15.20% |
| YES BANK | 12.00% - 14.00% |
| Bank of Maharashtra | 7.05% - 8.90% |
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.