An education loan is designed to financially aid the applicant in affording the cost of education. Since, the it caters to customers going for higher studies, the loans can be classified based on two parameters:
There are numerous banks in the country which offer loans specifically for students who aim study in India and for those who aim to study abroad. This distinction in the loan has been made keeping in mind the different financial needs that arises from studying in India or studying abroad.
Such loans are aimed at applicants who plan to study abroad. Generally, lenders have a list of institutions or specifications they support. The loan is approved if the applicant secured a seat in one of those institutes.
Domestic loans are meant for applicants who wish to pursue higher education in India. Lenders have eligibility criteria for the Indian institutes as well. Similar to study abroad loans, domestic education loans are approved if the applicant secured admission in an institute that meets the requirement.
Many banks and NBFCs offer loans that are based on the type of course the applicant is going for. There are loans which are also made for studying in premier institution like IITs and IIMs. Similarly, customers may also find loans that specifically offers financial solutions for the course their planning to pursue. Some types of course based loans are:
These loans offer financial support for pursuing undergraduate degree programs.
These loans are designed for applicants who want to pursue post-graduate studies or other professional courses.