Education Loan Interest Rates 2020237 views
- Why is Tata Capital Education Loan a preferred option?
- Attractive interest rates, customized EMI options make it so
You can apply for an education loan and complete your higher studies with the same. One of the financial institutions that makes it possible is Tata Capital, a leading non-banking finance company (NBFC) in India. Students aged between 16 to 26 years with good academic performance can apply for graduate and post-graduate courses with the help of Tata Capital education loan. And the student’s guardian or parents are the primary debtors for the borrowed amount. The interest rate on your loan is based on the co-borrower credit score. Read on to find out more about the education loan.
|Loan Quantum||INR 75,000 to 25 lakh|
|Processing Fee||2.75% of the loan quantum + GST|
Table of Contents
- 1 Tata Capital Education Loan for Study in India or Overseas
- 2 Tata Capital Education Loan EMI Calculator
- 3 EMI Plans for Tata Capital Education Loan
- 4 Collateral for Tata Capital Education Loan
- 5 Documents for Tata Capital Education Loan
- 6 How to Apply for Tata Capital Education Loan?
- 7 Payment Service for Tata Capital Education Loan
Tata Capital Education Loan for Study in India or Overseas
To finance the study for higher education in India or abroad, you can borrow the loan from Tata Capital Finance. The lender expects a stable source of income of yours or your parents before approving the loan. To ensure the loan is backed, the lender expects you to either submit security or present a guarantor. The lender will determine the loan eligibility based on the credit score of your co-applicants. With the quick approval and sanction of an education loan, you can meet all your expenses required to secure admission to a university or any other educational institution. Using the easy payment options, you can pay the loan in equated monthly installments. The loan can run for a maximum of 6 years, giving you enough time to pay back the debt.
Tata Capital Education Loan EMI Calculator
Using the Tata Capital finance EMI Calculator, you could manage your education loan payment during the tenure. The calculator functions using a mathematical formula. You just need to enter the loan amount, tenure and interest rate to find out the EMI you’ll be paying. It will also indicate the interest you will pay over the loan term. Suppose, the loan is INR 10 lakh and the repayment period you have chosen for it is 5 years, then the EMI would be INR 22,239 at an interest rate of 11.99% per annum.
EMI Plans for Tata Capital Education Loan
There are 3-ways to schedule your EMI during the loan tenure as per your income. Look at the details of those three EMI methods below.
STANDARD EMI PLAN
Applicants who have a regular source of income can use the standard EMI plan. Because, in this method, the EMI is debited without a single change. Your EMI remains the same throughout the tenure. You can use the Electronic Clearing Service to pay the EMI automatically from your bank account.
STEP UP FLEXI EMI PLAN
This EMI plan increases your loan eligibility. In the beginning, you’ll pay lower EMIs, and as your salary goes up, the EMI will increase. With this plan, you can pay the loan before the expiry of the original loan tenure.
Step Down Flexi EMI Plan
The EMI plan allows you to pay a higher EMI amount at the beginning of the repayment period. As a result, the interest payment reduces substantially. So, if you have a greater disposable income, you can choose this plan and save on your outgo.
Collateral for Tata Capital Education Loan
You do not need to provide any type of collateral to the financial institution until your loan is in the range of INR 4 lakh. When you borrow above INR 4 lakh for higher education in India or abroad, there is a need for tangible collateral which can be your property, fixed deposits and insurance policies.
The quantum of loan for higher education is INR 25 lakh for studies in India and INR 30 lakh for foreign education. You need to submit the collateral proof and documents along with the other KYC and income details during the loan processing.
Documents for Tata Capital Education Loan
You don’t need to worry about the documents for your education loan as the financial institution requires a few documents which are mentioned below.
KYC Proof of Student & Co-borrower
- Aadhar Card
- Voter Id card
- PAN card
- 10+2 Marksheet or certificate
Income Details of Parent or Guardian
- Salary Slip
- Salary Certificate
- Bank Statement
- TDS Report
- Income Tax Return (ITR) report
- FD receipts
- Insurance policy papers
- Property documents
Proof of Admission
- Admission letter from the institution or college
- List of fees during the course
- Other important documents from the educational institution
How to Apply for Tata Capital Education Loan?
You can apply for the loan online. Just visit the official website of Tata Capital and follow the instructions mentioned below to apply for the loan.
- Go to the ‘Education Loan’ section
- Fill the details sought in the online application form
- Mention your name, mobile, PAN details and submit
- After the loan approval, you can proceed to the next step
Pay the processing fee to the financial institution and submit the documents as mentioned. Once the borrower details are verified, the loan is disbursed to the bank account.
Payment Service for Tata Capital Education Loan
You can pay the EMI using the ECS or cheque. With the ECS, the payment can be made automatically from the bank account on the due date. For payment via a cheque, you can visit the Tata Capital branch and submit the post-dated cheques so that the EMI would be deducted on or before the due date of the payment. Failing to pay the EMI on time could attract a 3% penalty on the amount due. You can also use the ‘Pay Online’ service with which the EMI is debited from your bank account at the very moment you confirm the payment. To use this feature visit the Tata Capital official website or use its mobile app.
To find a solution to your loan queries, you can visit the nearest branch or contact the customer care representative. Dial 1860 267 6060 from your registered number. Once you get in touch with the representative, you can tell your problems related to the education loan. The representative would then solve your queries at the earliest.