Education Loan in MP & Chhattisgarh

✓ Up to 1.5 Cr Education Loan

✓ At a starting interest rate of 8.35%

 

 

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Table of content

  1. Best Banks For Education Loans In MP & Chhattisgarh
  2. Education Loan Interest rate in MP & Chhattisgarh
  3. Other Education Loan Features Offered By Banks Or NBFCs In MP & Chhattisgarh
  4. Documents required for availing an Education Loan in MP & Chhattisgarh
  5. Common reasons for Education Loan rejection in MP & Chhattisgarh
  6. Why Choose WeMakeScholars For An Education Loan in MP & Chhattisgarh?
  7. The Repayment Plan For Education Loans In MP & Chhattisgarh
  8. Education loan subsidy schemes applicable to students from MP & Chhattisgarh
  9. Institutions For Higher Education in MP & Chhattisgarh
  10. FAQ's
  11. Need Help? Ask Here!

This article is intended to assist individuals from MP & Chhattisgarh who are interested in furthering their education, either within India or abroad. It is estimated that students typically need up to 15 Lakhs for studying in India and 45 Lakhs for studying abroad. The interest rate for financing education can vary depending on the lender and can range from 8.30% to 13.5%. If you are considering pursuing higher studies in India or abroad and living in MP & Chhattisgarh, then this article may provide useful information for you.

Banks

Best Banks For Education Loans In MP & Chhattisgarh

For Studies In India

Bank Name

Scheme Name

Loan amount- Collateral Required

Processing fee

State Bank of India 

SBI Scholar Loan Scheme 

Upto 1.5 crores secured 

10K + GST

Bank of Baroda 

Baroda Education Loan to Students of Premier Institutions

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  

Auxilo education loan for studying in India

Upto 60 Lakhs 

1-2% of the loan amount 

Avanse

Education loan for studying in India  

Upto 60 Lakhs 

1-2% of the loan amount 

Incred 

Education loan for studying in India 

Upto 60 Lakhs  

1-2% of the loan amount 

Axis 

Education loan for study in India 

Upto 40 Lakhs unsecured 

1-2% of the loan amount 

ICICI 

Education loan for study in India

Upto 50 Lakhs unsecured 

1-2% of the loan amount 

IDFC First Bank

Education loan for study 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 

SBI Scholar Loan Scheme

Upto 1.5 Crores with collateral 

10K + GST 

Bank of Baroda 

Baroda Scholar 

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 

Union Bank Abroad Education Loan

Upto 1.5 Crores with collateral 

Zero 

Auxilo 

Education loan for studying abroad  

Upto 60 Lakhs for studying abroad 

1-2% of the loan amount 

Avanse 

Education loan for studying abroad 

Upto 60 Lakhs for studying abroad 

1-2% of the loan amount 

Incred 

Education loan for studying abroad 

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 

Pointer 2

Education Loan Interest rate in MP & Chhattisgarh

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 

Get the financial flexibility you need to pursue your education - apply with WeMakeScholars for a low-cost education loan.
Document

Other Education Loan Features Offered By Banks Or NBFCs In MP & Chhattisgarh

Expenses Covered

Education loans intend to cover various expenses related to the student's education. The lenders in MP & Chhattisgarh provide education loans that can help students fund their education.

  • The tuition fee of the Institution 
  • The expense of accommodation
  • Examination charges 
  • Library charges
  • Equipment charges 
  • Airfare Charges (For abroad education)
  • Insurance premium (For abroad education)

Moratorium Period

In most public banks, private banks, and NBFCs based in the city of MP & Chhattisgarh, the moratorium period lasts for a course duration plus 6 months to 1 year depending on the lender providing your loan. The conditions of loan repayment differ in every bank. Public banks do not require you to pay simple interest during the moratorium period. In private banks and NBFCs, simple interest is charged during the moratorium period which is compounded annually. Most NBFCs also provide an option of partial interest payment during the moratorium period. 

Loan Margin

The loan margin is an additional cost that the borrower must pay in order to obtain an education loan. This amount is typically a percentage of the total loan amount. In public banks, the loan margin is typically around 10%, while in private banks, it can range from 5% to 10%.

For example, if a bank charges a 10% loan margin and the student is applying for a loan of 50 Lakhs, the student would need to arrange an additional 5 Lakhs as the loan margin on their own in order for the loan to be disbursed. It's important to take the loan margin into account when considering an education loan, as it can affect the overall cost of the loan.

Collateral Margin

The collateral margin is calculated in the case of a secured or collateralized loan. The collateral margin is the amount calculated on the basis of the collateral provided as security. In cases where the student is unable to pay back the loan amount, the bank reclaims the amount by utilizing the property or collateral provided for the secured loan.

Document

Documents required for availing an Education Loan in MP & Chhattisgarh

Getting an education loan in Madhya Pradesh and Chhattisgarh needs several documents to be prepared. This section also describes the documents that are required from the applicants, co-applicants, and guarantors such as identification documents, residential proof, and other financial and academic documents. For the secured loans, clients are asked to provide documents such as property deeds and tax receipts. Permissible securities are residential and commercial properties, agricultural land, and fixed deposits, insurance policies. Knowledge of these necessities is useful in the elimination of hitches during the processing and approval of the loan. Keep reading to know more: 

Parameter 

Details

Basic documents for students, co-applicants, and guarantors

    1. Two passport-size photos and a completed application form containing the applicant's information. 
    2. As evidence of residency, you may use a passport, voter identification card, power bill, telephone bill, ration card, bank account statement, and Aadhar card. (Two different proofs are required if the applicant's current and permanent addresses are different.)
    3. Identity proof: PAN card and passport
    4. Statement of Personal Assets and Liabilities in the format chosen by the branch professional.
    5. The most current personal/salary six-month bank statement. The co-applicant credits must be submitted, and if the co-applicant is a self-employed individual, one year's worth of business transactions must be supported by documentation.

The documents must be self-attested 

Applicant academic documents

    1. Evidence of program enrolment or entrance (should be evidencing total course duration)
    2. The cost of the course (If available, i20 for USA)
    3. GRE, IELTS, and GMAT score report
    4. University Ranking printout form
    5. Education transcripts and diplomas—10th, 12th, and graduate

Financial Co-applicant Income documents 

If Salaried:

    • Current pay slips(for last 3 months)
    • Form 16 from the last two years.
    • A copy of the employer's ID
    • Two most recent ITRs

If Self-employed:

    • Three years' worth of ITR filed
    • P&L account's three-year balance sheet (only if self-employed businessman)
    • Company address documentation/Business address

Other Documents

    • A processing charge of Rs. 11,800 must be paid by check.
    • A letter stating that any costs not covered by the loan would be the co-responsibility. 
    • Applicant's additional cheques for the costs of the judge and the appraiser (if the bank itself does your legal and valuation process)
    • Owner's affidavit for the collateral property (on Rs. 100 stamp paper). If the property has many owners, each one of them is required to provide an affidavit

  Additional docs

    • Statements for any pending loans from the previous year
    • Receipt for any extra payment or payment done in advance
    • If you're asking for a loan for it, provide a proforma invoice for the trip, laptop, or another item
    • A letter noting the absence of co-applicants ITR if applicable 
      Notes for profile gaps

 

Collateral documents required for a secured education loan in MP & Chhattisgarh

If you are planning to go for a secured loan, you would also be required to provide some collateral documents for the property you are providing for the said loan. The collateral documents required for an education loan in MP & Chhattisgarh are mentioned below. 

1. The title deed to the pledged property

2. A recorded will, a selling agreement, or a gift deed.

3. The original receipt for the above-mentioned agreement's registration.

4. The letter of allocation from the local government or the appropriate authorized government agency.

5. A deed from a prior chain of sales that is at least 30 years old, an EC, or both are required to prove title. It is a 30-year record of who owned the property for the previous 30 years and from whom. The documents from the last transaction will suffice if you've owned the property for more than 30 years.

6. Present power and property tax bills originate from the same address.

Acceptable collaterals in MP & Chhattisgarh for education loans

There are some restrictions and requirements that apply to acceptable collateral for secured education loans. The list of collateral that is typically accepted in MP & Chhattisgarh for secured education loans is shown below.

  • House, Flat, Non- agricultural land with boundaries 
  • Commercial properties
  • Agricultural land
  • FD, Insurance policy, and Government bonds   
Read More
Don't settle for generic document lists - experience the difference of a custom document list today!
Pointer 1

Common reasons for Education Loan rejection in MP & Chhattisgarh

When banks or lenders have been directly approached for an education loan, the students are met with rejection. Below mentioned are a few of the specific reasons students face rejection for an education loan in MP & Chhattisgarh. 

  • Poor CIBIL scores: Loan applications may be denied if the financial co-applicants CIBIL score does not meet the bank's requirements. Banks usually require a minimum CIBIL score of 685, but SBI may accept scores as low as 591.
  • Poor academic scores: The applicant's prospects of getting the loan may reduce if they have a history of poor academic performance in the past.
  • Chosen country for higher studies: Third-world nations are typically not accepted as destinations for higher education by banks. This can be a result of worries regarding the caliber of instruction or the likelihood of finding employment after graduation. 
  • Chosen course for higher studies: Banks typically favor STEM degrees over courses in other academic disciplines because STEM graduates have better employment chances.
  • Insufficient documentation: Banks are unable to start the process of obtaining an education loan for international studies without the required paperwork. To be eligible for an overseas school loan, it is crucial to submit the required paperwork and income verification.
Don't let the fear of debt hold you back from pursuing your education. Check your eligibility for a loan now.
Idea/Solution/Tip

Why Choose WeMakeScholars For An Education Loan in MP & Chhattisgarh?

  • Direct engagement with lenders -You can contact the lender directly by obtaining the contact number of the executive responsible for your case from the lender's team.
  • Technologically advanced - With WeMakeScholars, you can conveniently apply for, monitor, and oversee your education loan from the comfort of your own home throughout the entire application process.
  • The cashback offered -   By applying for your study abroad education loan through WeMakeScholars, you are supporting the Digital India campaign and will be rewarded with a cashback of up to INR 3000 for multiple disbursements.
  • Negotiation - The team at WMS will work to secure the highest return on investment for you by negotiating with the lenders on your behalf. Additionally, we ensure that you are charged a fair price for the entire process, including the legal fees and any other expenses.
Make the education loan disbursement process simple with our post-sanction assistance.
Repayment

The Repayment Plan For Education Loans In MP & Chhattisgarh

Your amortization plan might be like this, for instance, if you took out a 20 lakh unsecured education loan from Hyderabad at a rate of interest of 10.5% with a grace period of 6 months and a repayment duration of 15 years.

  • Monthly EMI: 26,323
  • Total payment: 47,38,078
  • Total payable interest: 27,38,078

Repayment cycle

EMI

Interest portion

Loan Outstanding

Principal portion

End of 1st year

26323

20284

6038

2312181

End of 2nd year

26323

19619

6704

2235466

End of 3rd year

26323

18880

7442

2150297

End of 4th year

26323

18060

8263

2055741

End of 5th year

26323

17149

9173

1950766

End of 6th year

26323

16139

10184

1834221

End of 7th year

26323

15016

11306

1704834

End of 8th year

26323

13770

12552

1561187

End of 9th year

26323

12387

13936

1401709

End of 10th year

26323

10851

15472

1224657

End of 11th year

26323

9146

17177

1028093

End of 12th year

26323

7253

19069

809867

End of 13th year

26323

5152

21171

567592

End of 14th year

26323

2819

23504

298617

End of 15th year

26323

228

26094

0

Read More
Don't stress about completing the education loan disbursement process; our post-sanction help has got you covered.
Scholarship

Education loan subsidy schemes applicable to students from MP & Chhattisgarh

Padho Pardesh Scheme

Eligibility:

  • The applicant is a member of a religious minority (Muslim, Christian, Sikh, Buddhist, Jain, Zoroastrian) and has an annual family income of less than 6 lakhs.

Note: The Padho Pardesh Scheme is no longer in effect as of April 1, 2022. However, as of March 31, 2022, the previous beneficiaries will continue to receive the interest subsidies during the loan's term and its moratorium period.

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.
Banks

Institutions For Higher Education in MP & Chhattisgarh

In the Indian state of MP & MP & Chhattisgarh, there are many reputable educational institutions that offer a variety of academic programs. Some of the most notable institutions in the state offer courses in fields such as engineering, medicine, and the arts.IIT MP & Chhattisgarh.

  • Indian Institute of Technology (IIT) Indore
  • Devi Ahilya Vishwavidyalaya (DAVV) Indore
  • Jawaharlal Nehru Agriculture University (JNAU) Jabalpur
  • Dr. Harisingh Gour Vishwavidyalaya (DHSGSU) Sagar
  • Pandit Ravishankar Shukla University (PRSU) Raipur
  • All India Institute of Medical Sciences (AIIMS) Raipur
  • Pt. Sundarlal Sharma (Open) University (PSSOU) Bilaspur
  • National Institute of Technology (NIT) Raipur 

FAQs:

  • How to get an education loan in MP & Chhattisgarh?


  • What is MP & Chhattisgarh's upper age limit for receiving an education loan?


  • In MP & Chhattisgarh, who is eligible to be a co-borrower for an education loan?


  • What is the eligibility for an education loan in MP & Chhattisgarh?


  • Is a co-applicant for the student loan required in MP & Chhattisgarh?


Our Education Loan team will help you with any questions

Naresh Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.
Published: | Updated: