https://www.wemakescholars.com/education-loan/mp-chhattisgarh
Education Loan in MP & Chhattisgarh
✓ Up to 1.5 Cr Education Loan
✓ At a starting interest rate of 8.35%
Table of content
- Best Banks For Education Loans In MP & Chhattisgarh
- Education Loan Interest rate in MP & Chhattisgarh
- Other Education Loan Features Offered By Banks Or NBFCs In MP & Chhattisgarh
- Documents required for availing an Education Loan in MP & Chhattisgarh
- Common reasons for Education Loan rejection in MP & Chhattisgarh
- Why Choose WeMakeScholars For An Education Loan in MP & Chhattisgarh?
- The Repayment Plan For Education Loans In MP & Chhattisgarh
- Education loan subsidy schemes applicable to students from MP & Chhattisgarh
- Institutions For Higher Education in MP & Chhattisgarh
- FAQ's
- 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.
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 |
Upto 1.5 crores secured |
10K + GST |
|
Bank of Baroda |
Upto 1.5 Crores secured |
10K + GST |
|
Union Bank of India |
Upto 2 Crores with collateral |
No processing fee |
|
Karur Vysya bank |
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 |
Upto 40 Lakhs unsecured |
1-2% of the loan amount |
|
ICICI |
Upto 50 Lakhs unsecured |
1-2% of the loan amount |
|
IDFC First Bank |
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 |
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 |
Upto 40 Lakhs unsecured |
1-2% of the loan amount |
|
ICICI |
Upto 50 Lakhs unsecured |
1-2% of the loan amount |
|
IDFC First Bank |
Upto 50 Lakhs unsecured |
1-2% of the loan amount |
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 |
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.
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 |
The documents must be self-attested |
Applicant academic documents |
|
Financial Co-applicant Income documents |
If Salaried:
If Self-employed:
|
Other Documents |
|
Additional docs |
|
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
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.
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.
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 |
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.
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?
WeMakeScholars- supported by IT Ministry, Govt. of India.
Our Education Loan team will help you with any questions
Kindly login to comment and ask your questions about Education Loan in MP & Chhattisgarh