As a student, education might be one of your most significant investments. Investing in your education is a long-term financial plan and a step you can take to achieve a brighter future.
Planning your education loan in Madhya Pradesh is crucial to make the right decision.
Read this blog to learn more about the top colleges, bank interest rate on education loans in Madhya Pradesh, repayment plans and more.
What is the Eligibility Criteria for Education Loan in Madhya Pradesh?
Eligibility Criteria for Applicants
Eligibility Criteria for Co-applicants
Must be an Indian citizen and have a valid Indian passport.
Must be an Indian citizen
The college should be a Recognised University.
Only the applicant's parents can serve as co-applicants
If the parents are deceased, guardians are eligible to be co-applicants
If the applicant is married, spouses or parents-in-law can serve as co-applicants
Documents Required for Education Loan in Madhya Pradesh
If you are taking an education loan in Madhya Pradesh, you must submit a few necessary documents. If you are taking a secured loan against collateral, you must also submit a few additional documents.
Here is the list of documents required for taking an education loan in Madhya Pradesh:
Category
Documents Required for an unsecured loan
Additional Documents required for a secured loan
Student Documents
- Aadhar card, PAN card, and passport
- Admission Letter
- Recent electricity bills or house tax receipts
- Mark sheets for 10th, 12th, degree/diploma
- Competitive Exam Scorecard
- Work Experience letters
- Property Title Deed
- Registered Agreements
- Original Receipt of The Agreement
- Allotment Letter
- Ownership Transfer Documents
- Property Tax and Utility Bills (Electricity Bills, etc)
Co-applicant Documents
For Salaried Individuals:
- Pay slips for the last 3 months
- Bank statements for the last 6 months
- Company ID
- Previous 2 years of Form 16
- Income Tax Returns for the last 2 years (ITRs)
For Self-Employed Individuals:
- Last 3 years of ITRs
- Bank statements for the last 6 months
- Balance sheet and profit & loss account for the previous 3 years
- Proof of business address
- Building Plan or Plot Layout
Other Documents
- A letter from the co-applicant accepting responsibility for any costs not covered by the loan (format provided by the financial officer)
- Bank statement detailing financial transactions of both student and co-applicant
- Invoice for additional expenses like travel or a laptop
- Receipts for any advance payments made
- A letter explaining the absence of the co-applicant's income tax return (if applicable)
Take a look at some schemes of education loan in Madhya Pradesh provided by banks for students studying within India and those planning to pursue education abroad:
Continue reading to find out how to apply for an education loan Madhya Pradesh education loan.
To apply online, take these actions.
1. Determine Your Financial Needs
Estimate the total cost of your education, including tuition fees, living expenses, books, and other miscellaneous costs.
2. Research Loan Options
Compare interest rates, repayment terms, and any additional benefits like moratorium periods or interest subsidies.
3. Apply for the Loan
Go to the official bank website or visit the bank’s nearest branch to apply for the loan.
4. Prepare Required Documents
Fill out the online application and upload the necessary documents per the bank's guidelines.
Once you know all the information is correct, apply. After that, you should go to the branch to complete any last-minute paperwork and review the loan terms and conditions.
5. Loan Processing
The bank will verify your application and documents. Once verified, the loan will be sanctioned.
6. Loan Disbursement
Upon approval, the bank will disburse the loan amount directly to the educational institution or your account, as per the loan agreement.
Components Of An Education Loan In Madhya Pradesh from NBFCs
It's crucial to know what an education loan from an NBFC in Madhya Pradesh typically covers. Some examples of the costs that are usually covered by NBFC school loans are books, living expenses, test fees, transportation, and insurance for study abroad.
You should be aware of the following other crucial components of an education loan from an NBFC:
1. Moratorium Period
The moratorium period allows you to defer loan repayments until you complete your studies and earn a regular income. Depending on the lender's terms, this period typically ranges from 6 to 12 months.
2. Loan Margin
Loan margin is the amount of money you contribute from your pocket. Public banks generally have a loan margin of about 10%, whereas private banks may require a margin ranging from 5% to 10%.
4. Expenses covered
In Madhya Pradesh, students can apply for education loans to help with various costs, such as tuition, exam fees, accommodation costs, and required supplies like books and equipment. Specific lenders may also design the loans to pay for living expenses like food and lodging. Therefore, it is best to review the loan terms in detail to see what expenses the loan can pay.
5. Collateral Margin
The collateral margin specifies the amount of the loan that is guaranteed by a promised asset. If you cannot repay the loan, the lender may take possession of the collateral to recover their losses. The requirements connected to the collateral margin must be thoroughly understood because they will affect the financial commitments you make.
Education Loan Schemes For Students From Madhya Pradesh
There are various Education Loan scheme programs that students of Madhya Pradesh can avail. They are:
Education Loan Scheme Name
Eligibility
Benefits
Mukhyamantri Medhavi Vidyarthi Yojana (MMVY)
- 75% or above in MP Board / 85% or above in CBSE/ICSE exams
- Annual family income should not exceed ₹6 lakh
- Applicable for UG, PG, and professional courses in recognised institutions
Full or partial reimbursement of tuition fees for eligible UG, PG, and professional courses.
Mukhya Mantri Jan Kalyan Yojana
- Parents registered under the unorganised labour department of MP
- Student must secure admission to a recognised institution
Covers tuition fees, examination fees, and other educational expenses.
Education Loan Scheme by MP Scheduled Caste Development Corporation
- Belonging to the Scheduled Caste (SC) community
- Admission to a recognised course in India or abroad
Concessional interest rate loans cover tuition fees, living expenses, and other educational costs.
Explore more education loan scheme options in Madhya Pradesh here.
Please carefully check the official website of the above education loan scheme documents.
Top Colleges in Madhya Pradesh
Aiming for a top college and trying to find the best education loan scheme in Madhya Pradesh?
Here are some of the top universities in Madhya Pradesh.
University
Location
Average Fees
Indian Institute of Technology (IIT)
Indore, Madhya Pradesh
INR 8.48 Lakhs
Maulana Azad National Institute of Technology (MANIT)
Bhopal, Madhya Pradesh
INR 5.73 Lakhs
Indian Institute of Science Education and Research (IISER)
Bhopal, Madhya Pradesh
INR 3.58 Lakhs
Indian Institute of Management (IIM)
Indore, Madhya Pradesh
INR 17.3 Lakhs - INR 35 Lakhs
All India Institute of Medical Sciences (AIIMS)
Bhopal, Madhya Pradesh
INR 4,788
Rajiv Gandhi Proudyogiki Vishwavidyalaya (RGPV)
Bhopal, Madhya Pradesh
INR 33,980 - INR 1 Lakh
Atal Bihari Vajpayee Indian Institute of Information Technology and Management (ABV-IIITM)
Gwalior, Madhya Pradesh
INR 2.96 Lakhs - INR 7.9 Lakhs
National Institute of Fashion Technology (NIFT)
Bhopal, Madhya Pradesh
INR 9 Lakhs - INR 12.3 Lakhs
Barkatullah University
Bhopal, Madhya Pradesh
INR 60,000 - INR 3 Lakhs
Devi Ahilya Vishwavidyalaya (DAVV)
Indore, Madhya Pradesh
INR 35,000 - INR 3 Lakhs
If you want to enrol in these best courses or other top colleges in Madhya Pradesh, it's a wise choice to plan an education loan in Madhya Pradesh soon.
Propelld offers some great education loan options for engineering students in Madhya Pradesh. Click here to learn more!
Why Choose Propelld for an Education Loan in Madhya Pradesh?
It may be highly challenging for a student under educational pressure to figure out how to apply for an education loan in Madhya Pradesh.
For this reason, Propelld offers you student-specific education financing solutions. Whether you're seeking an education loan for medical or engineering students in Madhya Pradesh, we have an answer. The following are some advantages of taking out an education loan with Propelld:
Why Propelld?
Feature
Details
Max Loan Amount
50 Lacs
Collateral
Not Required
Moratorium
Available
Processing Time
10 Times Faster than Banks
Disbursal Time
7 Days
Approval Rate
Higher than Banks
Special USP
Marks Based Approval
% Financed
100% of Fees
Get an easy education loan in Madhya Pradesh with Propelld now!
What are the eligibility criteria for obtaining an education loan in Madhya Pradesh?
To be eligible for an education loan, you generally need to be an Indian citizen, have a confirmed admission to a recognised institution in India or abroad, and meet the academic and financial requirements set by the bank. The co-borrower, usually a parent or guardian, must have a stable source of income.
What expenses are covered by education loans in Madhya Pradesh?
Education loans typically cover tuition fees, examination fees, accommodation, travel expenses (for overseas education), library and laboratory fees, and the cost of books and equipment. Some banks also cover the purchase of laptops and other essential gadgets.
What is the maximum amount I can borrow for an education loan in Madhya Pradesh?
The loan amount varies depending on the bank and the course. For studies within India, the loan amount can go up to INR 50 lakh, while for studies abroad, it can extend up to INR 1 crore or more in some cases.
Do I need to provide collateral for an education loan in Madhya Pradesh?
Collateral is generally required for loans exceeding INR 7.5 lakh. Loans below this amount may not require collateral, but a third-party guarantor might be needed.
What are the interest rates for education loans in Madhya Pradesh?
Interest rates vary by bank and scheme. Typically, they range between 8.15% and 13.70% per annum. Banks often offer concessional rates for female students and meritorious students(
Are there any special education loan schemes available for students in Madhya Pradesh?
Yes, several banks offer specialised schemes like the PNB Saraswati for deserving students, the Vidya Lakshmi portal for easy application, and the Canara Bank Vidya Turant for quick disbursement with lower interest rates.
How is the loan amount disbursed?
The loan amount is usually transferred directly to the educational institution in instalments per the fee schedule. Some banks also provide a debit card for managing these funds.
What is the repayment period for education loans in Madhya Pradesh?
The repayment tenure typically ranges from 10 to 15 years, starting after the completion of the course and a moratorium period of up to one year.
Can I get a subsidy on the interest rate for an education loan?
Some banks offer subsidies under government schemes like the Central Sector Interest Subsidy Scheme (CSIS) for students from economically weaker sections. Female students often receive additional concessions on interest rates.
Can I repay the loan early without penalty?
Many banks allow loan prepayment without penalty. However, it is advisable to confirm this with your lender, as terms may vary.
What happens if I am unable to repay my education loan?
In case of default, the bank may take legal action and claim the collateral. Defaulting to repay your loan can also negatively impact your credit score. This makes it challenging to obtain loans in the future.
Are there any tax benefits on education loans?
Under Section 80E of the Income Tax Act, the interest paid on education loans is eligible for a tax deduction up to eight years after the repayment starts.
How can I apply for an education loan in Madhya Pradesh?
You can apply directly through the bank's branch, online through their official websites, or via the Vidya Lakshmi portal, which allows you to apply to multiple banks simultaneously.
Can I get an education loan for vocational courses?
Yes, many banks offer loans for vocational courses under specific schemes, such as the PNB Kaushal and Bank of Baroda's Skill Loan Scheme(
Is there a moratorium period on education loans?
Yes, most education loans include a moratorium period during which you are not required to make any repayments. This period usually covers the course duration plus 6-12 months.
Do banks offer education loans for studying abroad?
Yes, several banks in Madhya Pradesh offer education loans for studying abroad, with higher loan amounts and coverage for additional expenses like travel and insurance
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