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Education Loan in Hyderabad
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Table of content
- Best banks for education loans in Hyderabad
- Education Loan Interest rate in Hyderabad
- Other Education Loan features offered by Banks or NBFCs in Hyderabad
- Documents required for availing an Education Loan in Hyderabad
- Common reasons for Education Loan rejection in Hyderabad
- Why Choose WeMakeScholars for an Education Loan in Hyderabad?
- The Repayment Plan for Education loans in Hyderabad
- Education loan subsidy schemes applicable to students from Hyderabad
- Institutions For Higher Education in Hyderabad
- FAQ's
- Need Help? Ask Here!
This article is for you if you live in Hyderabad and are seeking a student loan to pay for your education in India or abroad. According to statistics, students in Hyderabad typically need an education loan of roughly 15 lacs to study domestically and 45 lacs to study overseas. Depending on the kind of loan and lender, Hyderabad's education loan interest ranges from 8.30% to 13.5%. You can find further information down below.
Best banks for education loans in Hyderabad
For studies in India
Bank Name |
Scheme Name |
Loan amount- Collateral Required |
Processing fee |
State Bank of India |
Upto 1.5 crores secured |
10K + GST |
|
Bank of Baroda |
Upto 1.5 Crores secured |
10K + GST |
|
Union Bank of India |
Union Bank India Education Loan |
Upto 2 Crores with collateral |
No processing fee |
Karur Vysya bank |
Education Loan Scheme |
Upto 1.5 Crores with collateral |
10K + GST |
Auxilo |
Upto 60 Lakhs |
1-2% of the loan amount |
|
Avanse |
Upto 60 Lakhs |
1-2% of the loan amount |
|
Incred |
Upto 60 Lakhs |
1-2% of the loan amount |
|
Axis |
Education loan for studying in India |
Upto 40 Lakhs unsecured |
1-2% of the loan amount |
ICICI |
Education loan for studying in India |
Upto 50 Lakhs unsecured |
1-2% of the loan amount |
IDFC First Bank |
Education loan for studying in India |
Upto 35 Lakhs unsecured |
1-2% of the loan amount |
For Foreign studies
Bank Name |
Scheme Name |
Loan amount- Collateral Required |
Processing fee |
State Bank of India |
Upto 1.5 Crores with collateral |
10K + GST |
|
Bank of Baroda |
Upto 1.5 Crores with collateral |
10K + GST |
|
Karur Vysya Bank |
Education Loan Scheme |
Upto 1.5 Crores with collateral |
10K + GST |
Union Bank of India |
Upto 1.5 Crores with collateral |
Zero |
|
Auxilo |
Upto 60 Lakhs for studying abroad |
1-2% of the loan amount |
|
Avanse |
Upto 60 Lakhs for studying abroad |
1-2% of the loan amount |
|
Incred |
Upto 60 Lakhs for studying abroad |
1-2% of the loan amount |
|
Axis |
Education loan for studying abroad |
Upto 40 Lakhs unsecured |
1-2% of the loan amount |
ICICI |
Education loan for studying abroad |
Upto 50 Lakhs unsecured |
1-2% of the loan amount |
IDFC First Bank |
Education loan for studying abroad |
Upto 50 Lakhs unsecured |
1-2% of the loan amount |
Education Loan Interest rate in Hyderabad
For studies in India
Bank Name |
Interest rate |
Interest rate concession |
State Bank of India |
Starts from 8.30% |
0.50% - for female students 0.50% - Rinn Raksha |
Bank of Baroda |
Starts from 10.60% |
Upto 2% on going through with WemakeScholars |
Union Bank of India |
Starts from 11.15% |
0.5% for female students 1% if the SI is paid in full |
Karur Vysya bank |
Starts from 10% |
Upto 2% on going through with WemakeScholars |
Auxilo |
Starts from 11% |
Upto 2% on going through with WemakeScholars |
Avanse |
Starts from 11% |
Upto 2% on going through with WemakeScholars |
Incred |
Starts from 11% |
Upto 2% on going through with WemakeScholars |
Axis |
Starts from 11.5% |
Upto 2% on going through with WemakeScholars |
ICICI |
Starts from 10.5% |
Upto 2% on going through with WemakeScholars |
IDFC First Bank |
Starts from 8.5% |
Upto 2% on going through with WemakeScholars |
For Foreign studies
Bank Name |
Interest rate |
Interest rate concession |
State Bank of India |
Starts from 10.90% |
0.50% - for female students, 0.50% - Rinn Raksha |
Bank of Baroda |
Starts from 10.60% |
Upto 2% on going through with WemakeScholars |
Union Bank of India |
Starts from 11.15% |
0.5% for female students 1% if the SI is paid in full |
Karur Vysya bank |
Starts from 10% |
Upto 2% on going through with WemakeScholars |
Auxilo |
Starts from 11% |
Upto 2% on going through with WemakeScholars |
Avanse |
Starts from 11% |
Upto 2% on going through with WemakeScholars |
Incred |
Starts from 11% |
Upto 2% on going through with WemakeScholars |
Axis |
Starts from 11.5% |
Upto 2% on going through with WemakeScholars |
ICICI |
Starts from 10.5% |
Upto 2% on going through with WemakeScholars |
IDFC First Bank |
Starts from 8.5% |
Upto 2% on going through with WemakeScholars |
Other Education Loan features offered by Banks or NBFCs in Hyderabad
Education loans from Non-Banking Financial Companies in Hyderabad are taken to cover expenses like tuition fees, hostel charges, examination fees, books, and other expenses related to abroad studies and traveling insurance, etc. The moratorium period ranges from a course duration of up to 6 months to a year. This is the period where the public banks collect simple interest, the private banks demand compound interest and the NBFC demands EMI. Loan margins which is the amount arranged by the applicant are 10% of the public banks and 5-10% for private banks. Security margins apply where security is taken in exchange for the loans where security can be sold to recover the outstanding balance in case of default. Know about the exact details by reading more.
Expenses Covered
The expenses covered by education loans given out by Banks or NBFCs include,
- Tuition fee
- Accommodation fee
- Examination fee
- Library fee
- Laboratory fee
- Cost of Books
- Miscellaneous expenses
- Travel tickets (For abroad education)
- Insurance premium for applicant (For abroad education)
Moratorium Period
The moratorium period in most banks based in Hyderabad is course duration + 6 months or 1 year. The loan repayment condition during the moratorium period is different in Public banks, Private banks, and NBFCs. In Public banks simple interest is charged on the taken loan amount, however, is not mandatory for applicants to pay simple interest in the moratorium period. In private banks compound interest is to be paid during the moratorium period. In NBFCs, EMI is to be paid during the moratorium period.
Loan Margin
Loan margin is a percentage of the entire loan amount which is to be arranged by the student/ applicant. For example, if the loan margin is around 5% and the loan amount is around 40 Lakhs, then that would mean that the student would have to arrange 2 Lakhs in order for the loan to get sanctioned.
In public banks, the loan margin is generally around 10% of the total loan amount. In private banks, the loan margin ranges between 5 to 10%.
Collateral Margin
The portion of the entire loan amount that is covered by collateral is known as the collateral margin. The collateral margin is generally calculated in the case of secured loans. In case the loan is unable to be repaid by the applicant, banks use the collateral offered by the student or the applicant to recover the due amount.
Documents required for availing an Education Loan in Hyderabad
To avail of an education loan in Hyderabad, the documents required are a completed loan application form, identity proof and proof of residence, personal asset and liability statement, and the latest bank statements. Such documents include admission letters, the structure of fees, test results, and mark statements. Income proofs for co-signer are as follows: Salaried: pay slip of last three months, Form 16, Latest ITR filed Self-employed pay slip of last three months, Latest ITR filed, Balance sheet. Other essentials comprise processing fee cheques, collateral affidavits, and other pending loan statements. For secured loans, documents related to the property as well as the municipal approval are required. To know the exact list of documents keep reading.
Parameters |
Details |
Basic documentation needed for the applicant and co-signer |
Note: if the co-applicant is self-employed, one year’s worth of company transactions must be provided. The documents must be self-attested |
Applicant academic documents
|
|
Income Documents of Financial Co-signer |
If Salaried:
If Self-employed:
|
Other Documents |
|
Additional documentation |
|
Collateral documents required for a secured education loan in Hyderabad
Along with the above-mentioned documents you would also require a few collateral documents in order to get started on your secured education loan process. The following documents are required when immovable property is pledged as collateral.
1. The title deed of the property being pledged
2. Gift Deed, Sale Agreement, or will which has been registered.
3. The Original registration receipt for the agreement mentioned above.
4. Allotment letter by the municipal corporation or authorized govt authority.
5. Document with a 30-year connection or It is necessary to have a prior chain of sale deed establishing title or EC. It is a 30-year history of who purchased the property from whom in the previous 30 years. The prior sale document is sufficient if you have owned the property for more than 30 years.
6. Recent electricity and property tax bills from the same address
7. A copy of the building plan or plot layout that the municipality has authorized.
Acceptable collaterals in Hyderabad for education loans
- House, Flat, Non- agricultural land with boundaries
- Commercial properties
- Agricultural land
- FD, Insurance policy, and Government bonds
Note: In order to get a secured education loan for a property based or located in Telangana, some specifications/ exceptions are mentioned below:
- The Land Regularization Scheme (LRS), which is needed for open plots, and the Building Regularization Scheme (BRS), which is needed for built-up properties, are extra documents needed in Telangana.
- Notarized properties are not accepted.
- Government-assigned properties are not accepted.
- Cantonment properties are not accepted.
Common reasons for Education Loan rejection in Hyderabad
Generally, when students try to approach lenders directly for an education loan they are faced with rejection. There are many reasons because of which banks can refuse to sanction a student loan
- Poor CIBIL scores: If the CIBIL Score of the co-applicant or the financial co-applicant doesn’t meet the CIBIL requirement of the bank the loan application gets rejected. Generally, the minimum required CIBIL by banks is 685 but in SBI it can go as low as 591
- Poor academic scores: If the applicant has poor academic scores in the past, it can affect the chances of getting the loan sanctioned
Chosen country for higher studies: Banks generally do not accept third-world countries as a destination for higher education. - Chosen course for higher studies: Banks usually prefer STEM courses over courses from other fields as the chances of employability are higher for STEM courses
- Insufficient documentation: Without the proper documentation banks cannot start your abroad education loan process. Hence, proper documentation and income proofs are required for an education loan to study overseas.
Why Choose WeMakeScholars for an Education Loan in Hyderabad?
Direct engagement with lenders - You can directly get in touch with the lender by taking the number of the executive overlooking your case from the lender's team
Technologically advanced - By going through your education loan application process with WeMakeScholars, you can apply, track and manage your student loan from the comfort of your home.
The cashback offered - As a reward for supporting the Digital India campaign by applying for your study abroad education loan through WeMakeScholars, you will receive cashback on multiple disbursements up to a maximum of INR 3000.
Negotiation - In order to achieve the best ROI, the WMS team will negotiate with the lenders on your part. Furthermore, we make sure that you pay a reasonable rate for the full process, including the lawyer's fee and other expenses.
The Repayment Plan for Education loans in Hyderabad
For Example, if you take out an unsecured education loan of 27.5 Lakhs from Hyderabad, at a rate of interest of 10.5% with a grace period of 6 months and a repayment period of 10 Years, your amortization schedule would look something like this.
- Monthly EMI: 44,181
- Total payment: 53,01,750
- Total payable interest: 25,51,750
Repayment cycle |
EMI |
Interest portion |
Principal portion |
Loan Outstanding |
End of 1st year |
44181 |
27088 |
17094 |
3078648 |
End of 2nd year |
44181 |
25204 |
18977 |
2861477 |
End of 3rd year |
44181 |
23113 |
21069 |
2620373 |
End of 4th year |
44181 |
20791 |
23390 |
2352698 |
End of 5th year |
44181 |
18213 |
25968 |
2055525 |
End of 6th year |
44181 |
15351 |
28830 |
1725602 |
End of 7th year |
44181 |
12174 |
32007 |
1359321 |
End of 8th year |
44181 |
8647 |
35534 |
952674 |
End of 9th year |
44181 |
4731 |
39450 |
501213 |
End of 10th year |
44181 |
383 |
43798 |
0 |
Education loan subsidy schemes applicable to students from Hyderabad
Central Scheme for Interest Subsidy for Economically Weaker Sections
Eligibility:
- The household income of the applicant is less than 4.5 lakhs.
Dr. Ambedkar Central Sector Scheme
Eligibility:
- The applicant comes from a financially underprivileged class, and their total annual family income is less than 8 lakhs.
- The applicant is from the OBC class, and their family makes less than 8 lakhs per year.
Institutions For Higher Education in Hyderabad
Numerous well-known institutions in Hyderabad provide courses that range from engineering to medicine and arts. Below are a few of the top institutions.
- Nizam college
- IIT Hyderabad
- IIIT Hyderabad
- Jawaharlal Nehru Technological Institute Hyderabad (JNTUH)
- Osmania University
- Birla Institute of Technology and Science, Pilani (BITS Pilani)
- Nizam Institute of Medical Sciences (NIMS)
- GITAM school of science
FAQs:
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Which Bank is best for education loans in Hyderabad?
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What is the EMI for an education loan?
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How much education loan can I get from SBI?
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Do banks give loans without interest?
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Can I get a loan without a job?
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Can I get a loan without income proof?
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Can I get an education loan in 10 days?
NEWS
Radiology student Bathula Venkata Subba Reddy, 34, has accused an acquaintance, Divakar Reddy, of cheating him out of Rs 25 lakh ($33,695). Subba Reddy filed a complaint with the Subramanyanagar police in Bengaluru, alleging that Divakar Reddy promised to secure a loan of Rs 1.5 crore ($202,044) for his master's course but failed to deliver.
Subba Reddy, met Divakar Reddy in August 2022, who claimed to have connections with a private finance firm in Hyderabad. Divakar Reddy convinced Subba Reddy to deposit Rs 25 lakh in order to gain the firm's trust. Subba Reddy made several payments between August and December 2022 but never received the promised loan, nor did he get his money back.
The police have registered a case against Divakar Reddy under IPC section 420 for cheating and dishonestly inducing the delivery of property. Subba Reddy, currently pursuing his master's degree in radiology in Chennai, hopes for justice in his case.
An investigation has been launched to bring the accused to justice and determine the truth behind the alleged loan scam.
Last Updated - 13/07/2023
Telangana's Health Minister T. Harish Rao disclosed that the state government invests significantly in medical education, offering generous financial aid of Rs 30 lakh for each MBBS student, Rs 45 lakh for postgraduate students, and Rs 75 lakh for super specialty medical students. The government aims to attract more students to pursue careers in medicine.
Telangana already boasts an impressive ratio of 22 MBBS students per one lakh population and ranks second in the country with eight postgraduate medical students per one lakh population. The government's focus on medical education aligns with its mission to enhance the healthcare workforce's capabilities and cater to residents' medical needs.
By investing substantially in medical education, the government seeks to alleviate the financial burden on aspiring doctors and promote inclusivity in the healthcare sector. Financial aid is expected to attract more talented individuals to medical colleges, ensuring the availability of skilled healthcare professionals.
Telangana's dedicated approach to nurturing medical talent and improving healthcare accessibility positions it to realize its vision of becoming the number one state in doctor count. This commitment reflects the government's mission to ensure equal access to quality medical services for all residents, ultimately enhancing the overall health and well-being of the population.
Telangana's State government is in active preparation for the rollout of the second phase of its unique 100 percent subsidy loan program tailored for minorities. According to officials from the Minority Welfare Department, the Telangana Minority Finance Corporation is presently in the process of disbursing Rs 1 lakh to each of the 14,300 applicants. An allocation of Rs 153 crore has been set aside for this phase, with District Collectors and District Minority Welfare Officers entrusted to oversee its seamless implementation.
Officials highlight that the smooth execution of the initial phase has paved the way for this subsequent leg of the subsidy scheme for minorities. During the inaugural phase, the government allocated and disbursed Rs 100 crore, providing checks of Rs 1 lakh to 10,000 minority beneficiaries on August 19.
In this initiative, the government aims to extend subsidies to around 120 eligible individuals from minority communities within each assembly constituency.
Telangana and Andhra Pradesh stand out in Indian overseas education, contributing 12.5% of Indian students studying abroad, as per the "Beyond Beds & Boundaries: Indian Student Mobility Report 2023." Most students from these states head to the US, Canada, Australia, and the UK, while emerging destinations like Germany, Kyrgyzstan, Ireland, Singapore, Russia, the Philippines, France, and New Zealand are also gaining popularity.
The surge in student mobility is driven by promising financial prospects, research opportunities, and diverse courses offered by foreign universities. These institutions favor a flexible, multi-disciplinary approach, fostering global networking and cultural exposure.
The report notes a significant rise in the number of Indian students abroad. In 2019, 10.9 lakh Indian students studied abroad, increasing to 13.24 lakh in 2022, with a projected 20 lakh students by 2025. Spending on overseas education is expected to grow from $37 billion in 2019 to $70 billion by 2025.
Yet, challenges persist within the Indian higher education system. Indian universities struggle to achieve global recognition, and capacity limitations require the establishment of numerous new institutions to accommodate the growing number of students. Furthermore, outdated curricula call for a more job-oriented approach to education.
Last Updated - 06/11/2023
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