How to Apply for a School Loan in India?
Last Updated : May 28, 2020, 5:11 p.m.
The penetration of education loans is getting deeper with a few lenders offering loans to parents whose kids are studying in schools. So, all those wanting loans for the study of their kids will need to go through a simple process. The parent needs to provide the income details and list of fees required. Your loan is disbursed directly to the school so that there is no late fee payment. Read this post to know more about this loan.
| Lender | Interest Rate | Tenure | Loan | Offers |
|---|---|---|---|---|
| Bank of Baroda | 7.75%-10.00% | 12 months | INR 4 Lakh | No margin and processing fee is required. And the loan is free from collateral |
| Avanse Financial Services Limited | 0% with Tie-up Schools For other schools, the lender will charge a spread over the base rate, which can change from time to time | 6 months | INR 3 Lakh | There is no paperwork required and the loan is disbursed quickly. And the processing fee of INR 999 is charged with 18% GST on it. |
| SMFG India Credit | 12.99% onwards | 3-24months | INR 5 Lakh | You can finance 24 months of school fee and the loan is disbursed in your account in just 24 hours. |
Bank of Baroda
You can go to the Bank of Baroda branch and ask for a school loan. Then the bank representative will offer you an application form. You need to fill the form and submit it to the bank official with KYC proof and income documents like salary slip, ITR report, Form 16, etc. After the verification process, the bank approves the loan and disburses the amount. Once the loan is sanctioned, you need to pay it in 12 months.
Avanse School Fee Financing Loan
The financial institution helps parents to borrow funds for the studies of their kids at a zero rate of interest. However, the zero rate benefit is for the partnered schools only. Otherwise, there would be an applicable interest over your loan. You can apply for a school loan from Avanse by filling an online application form and uploading a few documents. You need to pay a processing fee of INR 999 to get the loan processed. When the loan is sanctioned, you have 3 to 6 months to pay the loan amount in equated monthly installments.
SMFG India Credit School Loan
SMFG India disburses loans instantly to parents wanting to help their kids without any stoppages. Your children’s school fee would be managed with the loan amount and an attractive interest rate of 12.99% will make it affordable. To get this loan, you need to give the fee details, income proof and general KYC details to the lender. The moment all these details are verified successfully, you will get the loan in your bank account.
Documents
As a parent, you need to submit a few documents so that the loan can be disbursed to your account.
- Aadhar Card
- PAN Card
- Salary Slip
- Income Tax Return (ITR) report
- Bank statement
- Form 16
- Fee Details verified by the school