Education Loan in Kerala
Unlocking the doors to success often involves pursuing education, a journey that is not always financially smooth. In the picturesque state of Kerala, numerous bright minds harbor dreams of pursuing higher education, both within the country and beyond its borders. However, the stumbling block of financial limitations often hampers these aspirations. This is where the pivotal role of education loans becomes apparent.
In the forthcoming discussion, we delve into the intricacies of education loan in Kerala, shedding light on crucial aspects such as eligibility criteria, required documentation, prevailing interest rates, and repayment terms.
For students residing in Thiruvananthapuram, Kochi, and Alappuzha, the financial landscape reveals an average requirement of INR 15 lakhs to fund education within India. Conversely, those pursuing studies abroad face a more substantial financial commitment, with an estimated INR 45 lakhs. Navigating this financial terrain is further complicated by the varying interest rates on education loans in Kerala, spanning from 8.5% to 13%. The specific education loan interest rate in Kerala is contingent upon factors such as the type of loan selected and the lending institution in question.
Detailed information on these crucial facets will be explored further in the subsequent sections.
How to Get an Education Loan in Kerala?
Numerous financial institutions, both public and private, extend education loan in Kerala with varying interest rates, largely contingent on the borrower's financial profile and the presence or absence of collateral. Typically, public and private banks offer more favorable interest rates when a solid financial profile is accompanied by collateral. On the flip side, Non-Banking Financial Companies (NBFCs) often provide unsecured loans without the need for collateral, albeit at a higher education loan interest rate in Kerala.
Enter Propelld, a game-changer in the realm of education financing. Simplifying the journey to your dream school, Propelld streamlines the application process with online documentation and swift approvals. Propelld is committed to making education loan in Kerala accessible, featuring low-interest rates that empower you to pursue your aspirations without compromising on financial terms. In a departure from conventional lenders, Propelld focuses on investing in your future rather than dwelling on your past financial history. It's a paradigm shift that places your dreams at the forefront of the lending process.
Education Loan in Kerala – Key Highlights
- Covers Expenses: In the Indian context, educational loan in Kerala serve as a common avenue for funding various aspects of academic pursuits. These funds are typically utilized to cover a spectrum of expenses, encompassing tuition fees and examination costs and extending to study tours, project works, and miscellaneous expenditures associated with college or university life. Furthermore, education loans are designed to encompass living expenses, taking into account housing costs and meals, thus providing comprehensive financial support for the entirety of one's educational journey.
- Moratorium Period: The concept of a "moratorium period" entails a specific duration in which students are not obligated to commence the repayment of their education loan in Kerala. Typically, banks provide a grace period of 6 months to 1 year after the completion of the student's course, allowing them a window before they need to initiate loan repayments. This grace period will enable students to secure employment within the first six months to 1-year post-course completion, easing the transition into the repayment phase.
- Loan Margin: The loan margin represents the portion of the total loan amount the borrower must contribute from their funds. To illustrate, if the margin is set at 5%, the borrower is responsible for covering 5% of the total loan, while the lender covers the remaining 95%. This practice serves as a risk mitigation strategy for lenders, offering a safeguard in case the borrower encounters difficulties repaying the loan.
- Collateral Margin: The collateral margin represents the portion of the total education loan amount secured by an asset pledged as collateral. In this context, collateral serves as a guarantee the borrower provides. If the borrower cannot repay the loan, the lender retains the right to seize the collateral to recover their losses. Employing collateral margin is a common risk mitigation strategy adopted by lenders, offering protection in scenarios where the borrower faces challenges in meeting loan obligations.
Documents Required for Education Loan in Kerala
Initiating your education loan application requires submitting specific documents to your Bank. We've recently published an article detailing the precise documentation necessary to secure an education loan. To provide you with a brief overview, here is a summary of the fundamental documents required for an education loan in Kerala:
- Submission of online application
- Confirmation of identity (examples include Aadhaar Card, Voter ID, Passport, Driving License, etc.)
- Verification of address (such as Aadhaar Card, Voter ID, Passport, Driving License, etc.)
- Verification of enrollment status (official admission letter from the educational institution)
- Academic documentation (including reports for 10th grade, 12th grade, and graduation)
- Evidence of income for the preceding three months (such as pay slips or an official company letter confirming salary)
- Tax Form 16 for the last two years provided by your employer
- Submission of Income Tax Return (ITR) for the preceding two years
- Financial papers such as the balance sheet and profit/loss account for the last three years (required if the co-applicant is self-employed)
- A written statement addressing any breaks in academic or employment history is to be presented on stamp paper with a value of Rs. 100.
Why Choose Propelld for Education Loan in Kerala?
A considerable portion of Kerala comprises wetlands, making them ineligible for use as collateral. Additionally, a substantial portion of Kerala falls under non-serviceable areas, making securing an education loan in Kerala challenging.
Fortunately, there's a solution through Propelld. The Government of India endorses us under the Digital India Campaign and has established partnerships with many public and private banks. Explore the following points to gain insights into the advantages you can enjoy when working with us.
- Professional Guidance: When searching for a secured education loan, Propelld will designate a Financial Officer to accompany you throughout the process, guaranteeing a seamless and efficient experience. Additionally, we extend support for loan repayment.
- Interest Rate Negotiations: Unsecured loans generally have higher interest rates than secured loans. Nonetheless, Propelld is here to help you negotiate a reduced education loan interest rate in Kerala, potentially securing a rate as much as 2% lower than the initial quote from the lender.
- Zero Service Fees: Propelld provides its services at no cost and remains committed to supporting students until the loan is repaid.
- Transparency is Key: Propelld ensures to keep you updated on the status of your application, fostering a clear understanding of the entire process of education loan in Kerala.
- Experience in Challenging Cases: Propelld efficiently manages intricate cases involving multiple parties, prioritizing them to ensure swift loan approval. Our proven track record demonstrates our success in navigating these complexities and securing approvals promptly.
Education Loan in Kerala – Frequently Asked Questions
Which Bank Is Recommended For Education Loans In Kerala?
A: Banks offer diverse financial products, but the suitability of each may vary based on individual needs. Selecting an inappropriate product can result in unfavorable outcomes, such as a high education loan interest rate in Kerala. To avoid this, you can inquire about recommended banks for education loan in Kerala through a callback from Propelld.
What Is The Maximum Education Loan Amount Available In Kerala?
A: Typically, you can secure approximately INR 15 lakhs for education within India and around INR 45 lakhs for studying abroad. However, the actual amount may vary based on your profile. Propelld specializes in assisting you to obtain the highest possible loan amount from your lenders.
Is It Possible To Obtain An Education Loan Without Interest?
A: Education loans usually involve an interest rate. To explore the potential for a reduced interest rate, consider seeking assistance from Propelld. Their expertise lies in identifying loan options that align with your financial circumstances. It's important to note that the education loan interest rate in Kerala can differ based on the type of loan, the lending institution, and your income level.
What are the steps to Getting an education loan in Kerala?
A: To obtain an education loan in Kerala, assess your eligibility and select the most appropriate education loan product based on your profile. If you are a resident of Kerala seeking assistance with the education loan process, Propelld can provide comprehensive support at every step.