There are several top banks for educational loans which are provided to the engineering students in India. People approach different banks offering loans for engineering because of the increasing expenditure in this educational sector. The basic documents which are required for applying for such loans can be stated as follows:
1. Confirmation of admission of the student under a properly affiliated engineering college in India
2. Age proof
3. Residential proof
4. Agreement of parents or guardians with the student
5. The performance report of the student at secondary and higher secondary level examination
6. Income certificate of the parents, IT files and other proofs of steady source of salary
Banks offering educational loan to engineering students are summarized below:
1. State Bank of India Education Loan Scheme: This government bank provides educational loans for engineering students under Diploma or technical Degree. The college must be approved under AICTE/Govt. /UGC. Students studying at IIT and IIM can also apply for this loan. A maximum amount of Rs.10 Lakhs can be accepted by this bank if the student wants to study engineering in India. Expenses like tuition fees, caution deposits, examination fees, cost of any two-wheeler, having a maximum amount of Rs.50, 000 are all borne in the loan sanctioned by this bank. The interest rate is applied as per the RBI regulations.
2. Canara Bank educational loan: This bank provides loan to engineering students up to an amount of Rs10.5 Lakhs for studying in India. The interest rate charged by Canara Bank is 10.5% of the base amount.
3. HDFC Bank Educational Loan: HDFC bank offering loans for engineering covers 90% of the entire cost as determined through HDFC. This bank lends a maximum amount of Rs.2 Lakhs. The interest rate charged by HDFC Bank is 14%.
4. UCO Bank: This bank lends up to an amount of Rs.4 Lakhs for pursuing an engineering degree in India. The hostel fees, books or journal expenditures are also covered under this education loan scheme.
5. IBDI Bank Education Loan Scheme: Under this scheme the annual income of the family must be more than Rs.3 Lakhs. The student must secure at least 75% marks in the 12th standard for getting educational loans for engineering students.
6. Vijaya Bank Educational Loan: An amount up to Rs 4 Lakhs is provided to engineering students. The margin is of 25% above the amount of Rs.25,000. Here the mode of repayment is 6 months after completion of the course or 3 months after the students get a job.
