A tuition fee loan is money you can borrow from the financial institutions like banks to cover the cost of your course.
Eligible students can borrow up to the full cost of their course. Where you live, your age , your family background and the course you intend to take can affect whether you can get a loan. The majority of Indian students are eligible, but if you have taken a degree previously or are not ordinarily resident in India, please check with the bank you are applying to in order to double-check.
Please note that if you have previously taken a course at the same or a higher level, you are not usually eligible for a loan but may still be able to apply for other funding.
Leading financial institutions in India provide funding for up to 95% of the programme expenses to NIMT admits. The amount you borrow depends on the cost of your course.
Note:
- The details mentioned below are only indicative. NIMT does not take the responsibility for change in any terms & conditions, rate of interest or coverage at the bank / financial institution level.
- The particulars of the loan facilities shall be as per the sanction letters and loan agreements entered in to between the bank / financial institution and the student.
What you pay depends on how much you earn not how much you owe, so if you are unemployed or a low earner once you’ve graduated don’t worry.
Usually repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.
Also usually If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years.
Under section 80(e) of the Indian income tax act, a person can exempt the amount paid against the interest of the education loan – either for self or for his/her spouse or children – for eight years from the year (s)he starts to repay the loan or for the duration the loan is in effect, whichever is more.
| Logo |  |
|---|---|
| Maximum loan amount | 25 Lakhs or 95% of the cost whichever is lower (inclusive of insurance cover on the loan amount) |
| Interest rate | Base Rate(Floating) |
| Repayment period | 10 years (Option to remit only interest during the first 2 years. Principal payment for these two years will be included and EMI calculated and to be remitted in the balance 8 years period. |
| Moratorium | 18 Months or soon after placement, whichever is earlier |
| EMI Option | Option-1: Standard Option-2: Remittance of only interest during the first two years and balance interest and principal to be adjusted and collected within the remaining period. |
| Security | 1) Co-applicant OR 2) Personal Guarantor (preferably parent or spouse) 3) Third party guarantee accepted, if parent/s cannot be guarantor/s |
| Payment of Interest | Will be collected as a part of the EMI after the moratorium, whenever the repayment commences. |
| Pre-payment Charges | NIL |
| Insurance Cover | On the loan amount availed (Required) |
| Logo |  |
|---|---|
| Maximum loan amount | 95% of the total course fees |
| Interest rate | Base Rate + Mark up, Current base rate is 10.15% For Loan Amount Up to 10 Lakhs Effective Rate 10.15%+0.60% = 10.75% For Loan Amount Above 10 Lakhs Effective Rate 10.15%+0.85% = 11.00% (floating rate linked to base rate) |
| Repayment period | up to 15 years i,e. 180 Months Maximum |
| Moratorium | Course period plus one year or 6 months after securing a job, whichever is earlier |
| EMI Option | Standard |
| Security | Loans up to Rs. 20 lakhs – No security Loans above Rs. 20 lakhs – Acceptable security covering the loan amount. |
| Payment of Interest | To be paid during the moratorium period |
| Pre-payment Charges | Nil |
| Insurance Cover | On the loan amount availed. Insurance amount can be included in the loan amount. |
Apply for Educational Loan at Axis Bank
Document Required by Axis Bank:
| Purpose | Salaried | Others |
|---|---|---|
|
Proof of identity
|
Passport or Voter’s ID card or driving license or PAN card or government department ID card | Passport or Voter’s ID card or driving license or PAN card |
|
Proof of income
|
Latest salary slip showing all deductions or Form 16 along with recent salary certificate | IT returns for the last 2 years and computation of income for the last 2 years certified by a CA |
|
Proof of residence
|
Bank account statement or latest electricity bill or latest mobile or telephone bill or latest credit card statement or existing house lease agreement | Bank account statement or latest electricity bill or latest mobile or telephone bill or latest credit card statement or existing house lease agreement |
|
Bank statement or Pass Book where salary or income is credited
|
Last 6 months | Last 6 months |
|
Guarantor form
|
Optional | Optional |
| Other Documents | Copy of admission letter of the Institute along with Fees schedule, mark sheets / pass certificates of S.S.C, H.S.C , Degree courses | Copy of admission letter of the Institute along with Fees schedule, mark sheets / pass certificates of S.S.C, H.S.C , Degree courses |
| Logo |  |
|---|---|
| Maximum loan amount | 90%-100% of Course Fee |
| Margin Money Required (Yes/No) | No |
| Repayment Period | 120 months |
| Moratorium period | 12 months course + 6 months grace period ( Simple Interest to be paid during moratorium) |
| Rate of Interest | 11.95% for Unsecured loans (floating) 11.75% for Secured loans (floating) |
| EMI Option | 1. Standard 2. Step-Up EMI |
| Processing Fee Amount | 1-2% of the loan amount |
| Insurance Cover | Required |
| Security | 1. Co-applicant 2. Collateral to be property or FD, if applicable |
| Pre-payment Charges | Waived after 1yr of disbursement |
Apply for Educational Loan via Avanse
| Logo |  |
|---|---|
| Maximum loan amount | 80% – 95% of course fee(inclusive of insurance cover on the loan amount) |
| Interest rate | 10.75% (Floating) and 0.50% special concession for female students |
| Repayment period | 10 years upto Rs. 7.5 Lakhs 15 Years above Rs. 7.5 Lakhs |
| Moratorium | Course period +1 Year or 6 months or soon after placement, whichever is earlier |
| EMI Option | Standard |
| Security | 1) Co-applicant OR 2) Personal Guarantor (preferably parent or spouse) Acceptable by the bank |
| Payment of Interest | Included in the EMI |
| Pre-payment Charges | NIL |
| Insurance Cover | On the loan amount availed (Required) |
| Logo |  |
|---|---|
| Application type | Online / Offline application |
| Eligibility | |
| Quantum of loan | Upto 80% – 100% of Course Fee |
| Rate of interest | 9.65% |
| Processing fee | NIL |
| Margin | For loans above rs. 4 lacs :- 5% |
| Security | 1. assignment of future income of the student 2. Parent / guardian has to join as co- borrower |
| Repayment tenure | 10 years – for loans upto rs. 7.50 lacs
15 years – for loans above rs. 7.50 lacs to rs. 30 lacs |
| Maximum processing time | 48 hours |
| Logo |  |
|---|---|
| Maximum loan amount |
All of the tuition fees as determined by the college/University
Up to 100% of other expenses including living and hostel expenses, travelling expenses, examination fees, library/laboratory fees; purchase of books / equipment’s / instruments / uniforms; passage money for studies into India; purchase of computers / laptops considered necessary for completion of the course as decided by Credila.
|
| Interest rate | 11.95% (floating) with full moratorium during course 11.75% (floating) with interest repayment during course |
| Repayment period | 10 years |
| EMI Option | Standard |
| Moratorium | 18 Months from the commencement of the programme or placement whichever is earlier |
| Security | Co-borrower is required as Father, Mother, Brother, Sister, Spouse, Brother-in-LawPaternal Uncle as acceptable by Credila |
| Collateral | None up to 25 Lakhs |
| Pre-payment Charges | None after 2 years from the first date of disbursement |
| Insurance Cover | On the loan amount availed (Required) from HDFC Ergo General Insurance. |
| Processing Fees | Rs.5000/- Flat Inclusive of Taxes |
Vidya Lakshmi Portal
Vidya Lakshmi (NSDL)
Vidya Lakshmi is a first of its kind portal for students seeking Education Loan. This portal has been developed under the guidance of Department of Financial Services, (Ministry of Finance) , Department of Higher Education (Ministry of Human Resource Development) and Indian Banks™ Association (IBA).The portal has been developed and being maintained by NSDL e-Governance Infrastructure Limited.
Students can view, apply and track the education loan applications to banks anytime, anywhere by accessing the portal. The portal also provides linkages to National Scholarship Portal.
Vidya Lakshmi is a first of its kind portal for students seeking Education Loan. This portal has been developed under the guidance of Department of Financial Services, (Ministry of Finance), Department of Higher Education (Ministry of Human Resource Development) and Indian Banks Association™ (IBA).The portal has been developed and being maintained by NSDL e-Governance Infrastructure Limited.
Students can view, apply and track the education loan applications to banks anytime, anywhere by accessing the portal. The portal also provides linkages to National Scholarship Portal.
Loan is granted to Indian Nationals for pursuing higher education in India where admission has been secured.
If you want to be admitted in August of admission year you should apply for student finance online from mid or preferably early in the year.
Although each bank/financial loan granting organization has its independent deciding criteria and requires documents accordingly, but generally below mentioned is the list of documents that most banks in India require:
- Completed Education Loan Application Form.
- Mark sheets of last qualifying examination
- Proof of admission scholarship, studentship etc
- Schedule of expenses for the specified course
- 2 passport size photographs
- PAN Card of the student and the Parent/ Guardian
- Borrower’s Bank account statement for the last six months
- Income tax Returns/ IT assessment order, of last 2 yrs (If IT Payee)
- Brief statement of assets and liabilities, of the Co-borrower
- Proof of Income (i.e. Salary slips/ Form 16 etc. if applicable)
Your tuition fee loan is paid directly to the college at which you have accepted a admission so you don’t have to worry about fees on your first day. You must although remember to register and inform the college about the sanctioned loan details.
Shri Arun Jaitley, Honorable Union Finance Minister in his budget speech for FY 2015-16: ‘With a view to enable all poor and middle class students to pursue higher education of their choice without any constraint of funds, I propose to set up a fully IT based Student Financial Aid Authority to administer and monitor Scholarship as well Educational Loan Schemes, through the Pradhan Mantri Vidya Lakshmi Karyakram.
