Education is a significant investment. You should pick out an education loan in Telangana after going through several schemes and their benefits.
Whether you are looking for an education loan for B.Tech students in Telangana or the best education loan for MBA students in Telangana, this blog has listed several loan schemes and details that will benefit you.
Keep reading to know!
Eligibility Criteria for Applying for an Education Loan in Telangana
To be eligible for an education loan in Telangana, candidates must fulfill specific qualifying requirements:
Eligibility Criteria
Details
Parental or Guardian Representation
A parent or guardian must serve as a co-borrower for students who are minors, ensuring legal and financial responsibility.
Joint Loan Agreement
The loan will name both the parent/guardian and the student, tying them to the repayment obligation.
Admission by Merit
The student must have been accepted based on merit, following a competitive selection process, into an accredited institution in India or outside.
These requirements guarantee that you use the loan amount for approved educational endeavours and that the student has the financial resources to sustain their academic plans. Suggested read: Education loan for MBA in Telangana
Documents Required for Education Loan In Telangana
To apply for an education loan in Hyderabad, here are the documents required:
Category
Applicant
Co-signer
Loan Application Form
Must be fully completed, signed, and accompanied by two photographs
Must be fully completed, signed, and accompanied by two photographs
Proof of Address
Voter ID, telephone bill, electricity bill, ration card, bank account statement, or Aadhar card
Voter ID, telephone bill, electricity bill, ration card, bank account statement, or Aadhar card
Proof of Identity
PAN card and passport
PAN card and passport
Personal Asset and Liability Statement
Follow the bank's specified format
Follow the bank's specified format
Bank Statements
Latest 6-month bank statement (salary or personal)
For self-employed, provide one year’s worth of company transaction statements
Existing Loan Statements
From the previous year, if applicable
Receipts for Advance Payments
For any upfront payments made
Proforma Invoice
If requesting funds for specific items like a trip or laptop
Explanation Letter
If the co-applicant lacks ITRs or has a gap in the applicant's academic or professional profile
Some academic documents are also required from the applicant while applying for an education loan in Hyderabad. They are:
Category
Details
Proof of Admission/Enrollment
The document should confirm the total duration of the program
Course Fee Structure
Include the I-20 form if applying for studies in the USA
Standardised Test Scorecards
GRE, IELTS, or GMAT results
University Ranking
A printout of the university's ranking
Educational MarkSheets and Certificates
Documentation from 10th and 12th grades and any degrees
The co-applicant will have to submit some specific income documents to the bank while applying for an education loan in Hyderabad. They are:
Keep reading if you are wondering how to get an education loan in Telangana. It is a straightforward, simple process:
Apply online by doing the following:
Visit the bank's official website.
As directed by the bank, complete the online application and upload the required files.
Apply after you are confident that all the information is accurate. Following that, you ought to visit the branch to finalise any outstanding documentation and go over the terms and conditions of the loan.
Government Schemes For Education Loan in Telangana
Wondering how to get an education loan in Telangana? Specifically for education loan for SC students or for BC education loans in Telangana, there are several schemes you can benefit from.
The Telangana government offers several government schemes for educational loans in Telangana. Some schemes are specifically for education loan for SC students in Telangana or students belonging to BC education loan in Telangana:
Scheme Name
Target Group
Benefits
Coverage
Chief Minister’s Overseas Scholarship Scheme
SC students in Telangana, ST students, and Marginalised Communities
Soft loan up to ₹10 lakh; covers tuition, living, and travel expenses
Higher education abroad
Mahatma Jyotiba Phule Overseas Vidya Nidhi Scheme
SC students in Telangana and ST Students
Soft loan up to ₹20 lakhs with interest subsidy
Postgraduate studies abroad
Dr. Ambedkar Central Sector Scheme
OBC and EBC Students
Interest subsidy on education loans for overseas studies
Studies abroad
CSIS (Central Sector Interest Subsidy)
Economically Weaker Sections
Interest subsidy on education loan for B.Tech students in Telangana and professionals in India
Higher education in India
Please check the latest details and specific eligibility criteria on the official website of the Telangana State Government or consult with your bank to ensure you meet all the requirements for this subsidy.
Expenses Covered by Education Loan in Telangana
It's essential to know the types of expenses that can be covered by an education loan from a bank or non-bank financial institution (NBFC) in Telangana.
Education loans usually cover a wide range of costs necessary to successfully complete your education, both domestically and overseas. Among them are the following.
Expense Type
Description
Tuition Fee
The primary expense for any educational program
Accommodation Fee
Costs associated with housing either on or off-campus
Examination Fee
Fees for exams throughout the study period
Library Fee
Charges for using the academic institution’s library resources
Laboratory Fee
Fees for using the laboratory facilities for science and technology courses
Cost of Books
The required textbooks and other study materials
Miscellaneous Expenses
Other necessary expenses related to education
Travel Tickets
Initial travel costs for students studying abroad
Insurance Premium for Applicant
Includes health and travel insurance for students going abroad
Understanding the loan features is crucial for making informed decisions when seeking an education loan in Telangana. Each financial institution may have slightly different terms, but most follow a standard structure to ensure the borrower's economic security and the loan's successful repayment.
1. Moratorium period
One crucial aspect of educational loans is the moratorium period, which gives the borrower time to prepare before initiating repayment:
Public Banks:
These banks usually provide a moratorium period that lasts the course plus an additional six months to a year, during which the bank imposes simple interest on the loan amount. During the moratorium, there is no requirement to pay this interest.
Private Banks:
When repayment starts, you must pay the compound interest accumulated during the moratorium period.
NBFCs:
EMI payments, which may include principal and interest, are typically required during the moratorium period.
2. Loan Margin
This represents the percentage of the total loan amount that the borrower is required to fund:
Public Banks:
Typically, they have a 10% loan margin.
Private Banks:
The loan margin may range from 5% to 10%, depending on several variables, such as the loan product's specifications and the borrower's financial history.
3. Collateral Margin
Banks use collateral to recoup the unpaid loan balance if the borrower defaults. The precise conditions governing the proportion of the loan amount that must be secured by collateral can fluctuate significantly among lending organisations.
Top Colleges in Telangana
There are various top colleges in Telangana for which you might want to get an education loan, like:
IIT Hyderabad
NIT Warangal
IIIT Hyderabad
University of Hyderabad (UoH)
Osmania University
BITS Pilani, Hyderabad Campus
JNTU Hyderabad
NALSAR University of Law, Hyderabad
SR University, Warangal
IBS Hyderabad
Why Choose Propelld for an Education Loan in Telangana?
For a student facing academic pressure, figuring out how to get education loan in Telangana might be very difficult.
Consequently, Propelld provides student-specific education funding options. Whether you're looking for an education loan in Telangana for engineering or medical students, we have an answer.
Some benefits of using Propelld for your student loan are as follows:
What are the eligibility criteria for availing an education loan in Telangana?
Most banks require the student to be an Indian citizen, have secured admission in a recognised course, and have a co-applicant (usually a parent or guardian) to guarantee the loan.
Which banks offer education loans in Telangana?
Central banks in Telangana, including the State Bank of India (SBI), Andhra Bank, ICICI Bank, and HDFC Bank, offer education loans.
What is the interest rate for education loans in Telangana?
The interest rate varies depending on the bank and the type of course. Typically, it ranges between 8% to 12% per annum.
Can I get an education loan to study abroad in Telangana?
Yes, many banks in Telangana offer education loans for students aspiring to study abroad, covering tuition fees, travel expenses, and other costs.
What documents are required to apply for an education loan in Telangana?
Commonly required documents include an admission letter, fee structure, academic records, identity proof, address proof, and income proof of the co-applicant.
Is there a government subsidy available on education loans in Telangana?
Yes, there are government schemes like the Central Scheme to provide Interest Subsidy (CSIS) on education loans for economically weaker sections.
What is the maximum amount I can borrow as an education loan in Telangana?
The maximum loan amount can vary by bank but typically ranges from ₹10 lakh for studies in India to ₹20 lakh or more for studies abroad.
How can I apply for an education loan in Telangana?
You can apply through the bank’s website or visit the nearest branch with the required documents. Many banks also offer doorstep services for loan applications.
What is the repayment period for education loans in Telangana?
Repayment usually begins 6 months to 1 year after course completion, with a typical repayment period of 5 to 15 years, depending on the loan amount.
Are there any specific education loan schemes for minority communities in Telangana?
The Telangana State Minorities Finance Corporation (TSMFC) provides education loans with interest subsidies for minority students.
Can I get a loan for vocational or skill development courses in Telangana?
Some banks and financial institutions offer education loans for vocational, skill development, and certificate courses.
What is the process for loan disbursement in Telangana?
Once the loan is approved, the bank disburses the amount directly to the educational institution based on the fee structure provided.
Are there any collateral requirements for education loans in Telangana?
Loans up to ₹4 lakh generally do not require collateral, while loans above this amount may require a guarantor or collateral security.
Can I prepay my education loan in Telangana without penalties?
Most banks allow education loan prepayment without penalties, but it’s best to check your bank's specific terms and conditions.
What should I do if my education loan application is rejected in Telangana?
If the bank rejects your educational loan application, review the reasons provided by the bank, improve your application, and consider reapplying or exploring loans from other banks.
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