Education Loan in Tamil Nadu For Students
Tamil Nadu has stood out as an exemplary state in the field of education for decades. Due to the 100% gross enrollment ratio (GER) in primary and secondary education, students of Tamil Nadu rely on education loans to finance their higher education. These education loans are much more important, especially considering the enormous costs of college these days.
To help students finance their education, the Tamil Nadu government offers education loans for different courses. However, there is an education loan eligibility in Tamilnadu that students must adhere to. If you are looking for an education loan in Tamil Nadu, look no further! Today, we will find out how to get education loan in Tamil Nadu, along with its eligibility criteria and document requirements.
Top Education Loan Providers in Tamil Nadu
If you are a student from Tamil Nadu, you must first know which bank is best for education loan in Tamil Nadu. 8.98% of the total education loans disbursed by the public sector of India were for the students of Tamil Nadu in the financial year 2023-24. This is why the government of Tamil Nadu is highly considerate about providing education loans to its students. Private banks have also joined the race and together account for huge education loan disbursals. Here are some of the best banks for education loan in Tamil Nadu you must know:
For Studying in India
For Foreign studies
Education Loan Interest Rates to Students in Tamil Nadu
Based on available statistics, students in Chennai, Coimbatore, or Madurai typically need education loans totaling around INR 15 lakhs for study inside India and roughly INR 45 lakhs for studies overseas. The interest rates on education loans in Tamil Nadu vary from 9% to 14%, contingent upon the loan type and the lending institution.
Education loan interest is one of the most sought-after information students want to know while choosing a bank. To ease your pain, we have outlined the education loan interest offered by different banks:
Studies in India
Studies Abroad
Factors Influencing Education Loans in Tamil Nadu
Getting an education loan in Tamil Nadu necessitates considering factors that have greater influence over your eligibility and approval. Some of these factors are:
Expenses Covered Under Education Loan
- Tuition fees for college/university
- Examination fee
- Lab/library fee
- Books, uniform, equipment fee
- Computer/laptop fee
- Travel expenses
Margin Money
Public banks provide education loans of up to 80-90% of the entire amount asked. You should pay and cover the remaining balance. On the other hand, NBFCs and private lenders offer 100% financing with no margin money.
Education Loan Eligibility in Tamilnadu
Before you apply for an education loan, the emphasis on eligibility criteria can not be neglected. Let us have a look at education loan eligibility in Tamil Nadu:
- You should be a resident of India.
- You should have a co-borrower who will take the responsibility for your liability. It can be your immediate family member like parents or siblings.
- You have received the admission letter from the institute you applied for.
- If you are not sure about college but decided to move ahead with higher studies, then you can get the loan based on scorecards of competitive exams like GRE, GMAT, TOEFL or IELTS.
Documents Necessary to Avail Education Loan in Tamil Nadu
The education loan process requires a set of documents to properly authenticate your identity and other information. Whether it's a secured loan or an unsecured one, each process is different and requires different documents. We understand that arranging documents is quite overwhelming. So, we have compiled all the necessary documents according to the types of loans and entities for an easy loan process.
For Unsecured Loans
Student Document
- The application form must be attested with your two passport-size photographs, signature, and information from the financial officer.
- Identification documents such as adhaar card, passport, and PAN card
- Admission letter from the college/university
- Electricity bills or house tax bill
- 10th, 12th, degree/diploma mark sheet
- Gap certificate, if applicable
- Work experience certificate
- Scores from competitive exams
Co-Applicant Documents
- For salaried individuals: Bank statements of the last six months, salary slips of the last 3 months, the company ID, Form 16 of the last 2 years, and the previous 2 years of ITRs.
- For self-employed individuals: ITRs of the previous 3 years, last 6 months of bank statements, balance sheet, last 3 years of P/L account, and address proof of business.
Other Documents
- Authenticated letter citing that co-applicant is responsible for any lapse in loan repayment.
- Standard bank statement manifested with student and co-applicant
- Expenses invoices such as laptop and travel if the loan promises to cover those expenses
- Receipts for advance transactions.
- Loan statements from previous years
- Gap certificate, if applicable, on ₹100 stamp paper
- Letter explaining lack of co-applicants ITR
For Secured Loans
- The income certificate of the co-applicant
- Ownership document property
- Gift deed, registered sale agreement, or will that proves property ownership
- Original receipt of ownership
- An allotment letter from the government, like CMDA approvals for Chennai and Manai Patta with DTCP from Coimbatore, Madurai, and Salem.
- A photocopy of a building/plot layout approved by the municipality
- Latest property bill and electricity bill
What Collaterals Can Be Accepted for Education Loans in Tamil Nadu
The following are the types of collateral that can be accepted for education loans in Tamil Nadu:
- The title deed or patta(a type of document that grants ownership of the land) is a mandatory document.
- Commercial properties accepted by private lenders
- Agriculture lands
- Fixed Deposit (FD), Insurance policies, and government bonds
It comprises both private and government education loan details in Tamil Nadu.
Education Loan for MBBS in Tamilnadu
From MBBS to MBA, students can avail of education loans for different programs and courses. This allows students to opt for a program of their choice and choose to apply for an education loan without any restrictions. Some of the most popular MBBS colleges in Tamilnadu are Madras Medical College in Chennai, Christian Medical College in Vellore, Coimbatore Medical College in Coimbatore, Stanley Medical College in Chennai, and Tirunelveli Medical College in Tirunelveli.
Up to INR 10 lakh can be borrowed for MBBS in India, while up to INR 40 lakh can be borrowed for study overseas. The majority of NBFCs offer loans with no maximum but do demand collateral.
Benefits and Features of Education Loans in Tamil Nadu
Applying for education loans in Tamil Nadu offers its own set of benefits. It also offers access to additional features such as:
- Expenses Covered: The loans cover tuition fees, test fees, books, equipment, dormitory fees, accommodation, and food.
- Moratorium Period: The moratorium period, which often lasts between six and twelve months after the course is over, might vary in duration depending on the lending bank and the terms of the loan.
- Loan Margin: There are private banks in Tamil Nadu that offer a 0% loan margin.
Rejection of Education Loan in Tamil Nadu
There are multiple factors that can lead to rejection of education loans in Tamil Nadu.
- Firstly, most students provide Kotu Patta which is not applicable during loan application. Instead, you should provide a Patta, an individual property.
- Secondly, the property should have some mandatory approvals such as CMDA in Chennai or DTCP in Coimbatore, Madurai, Tiruchirappalli, and Salem so that you become eligible for a secured loan.
- Thirdly, not ensuring that collaterals provided are not constructed as per the approved building plan will result in an FSI deviation, leading to loan rejection.
We, at Propelld, provide end-to-end assistance from experts so that everything is scrutinized precisely by your relationship manager. This will lower your chances of facing rejection significantly and help expedite your loan disbursal process.
Avail an Education Loan in Tamil Nadu through Propelld
If you are looking for an education loan in Chennai or any city in Tamil Nadu, Propelld will simplify the process for you and increase your chances of successful approval. We will connect you with the experts who will assist you with the process so that you can get a super quick loan. Whether you want to negotiate the interest rate, issue loan sanction or seek help in the loan repayment process, Propelld fully understands your need and acts with great efficiency.
- Moratorium: Get an education loan in Tamil Nadu with a moratorium period ranging from 6 months to 12 months.
- Income Share Agreement: Get a loan that you repay only when you get a job.
- Study Now, Pay Later: Focus on your study without stressing about the repayment of the loan.
Conclusion
Whether studying in Tamil Nadu or abroad, the expenses associated with education are enormous in this era. Applying for an education loan is the easiest way to finance those educational expenses and chase your dreams. However, applying for an education loan is a tedious and complex process.
Propelld not only helps you get through this process easily but also apply for the loan with successful approval. We will give you private education loan options as per your profile and needs. With a 100% online process, get it done at the ease of your home and remove the barrier to financial access with us.
