How to Get an Education Loan After the 12th?

Embarking on your higher education journey just got easier! Wondering “How to get an education loan after 12th?” Look no further. This guide is your key to unlocking the world of education loans, offering a clear path through the financial hurdles that stand between you and your academic dreams. Financial constraints shouldn’t hold you back whether you’re aiming for prestigious universities in India or abroad. Here, we provide essential insights and practical advice to help you effortlessly secure the funding you need. Get ready to transform your educational aspirations into reality without letting money be an obstacle.

What are Education Loans?

An education loan is a beacon of hope for many students wondering how to get an education loan after the 12th, dreaming of pursuing higher education in India or abroad but are constrained by financial limitations. These loans cover a variety of educational expenses, enabling students to focus on their studies without worrying about the financial burden. Education loans can be availed from various banks and financial institutions, each offering different terms and benefits to meet the diverse needs of students. The significance of education loans extends beyond mere financial assistance; they are investments in the future, empowering students to unlock their full potential and achieve their academic and career goals.

Types of Education Loans

Education loans can broadly be categorized into two types: Secured and unsecured. Here’s a comparative overview to help you understand the differences:

Feature	Secured Education Loan	Unsecured Education Loan
Collateral	Required	Not Required
Interest Rate	Generally lower	Higher than secured loans
Loan Amount	Can be higher, depending on the collateral value	Usually has a cap or limit
Repayment Terms	EMI/SI/PI	EMI/SI
Processing Time	May take longer due to collateral assessment process	Quicker processing time

Secured loans require collateral, such as property, making them a lower-risk option for lenders and hence often come with lower interest rates and more flexible repayment terms. Unsecured loans, on the other hand, do not require any collateral but usually have higher interest rates and stricter repayment terms due to the higher risk for lenders.

Education Loan Options After 12th

Several education loan providers can assist you in understanding how to get an education loan after the 12th. securing the necessary funding after the 12th grade. A major factor determining which lender to choose is whether you intend to pursue your undergraduate studies in India or abroad. To aid in a clearer understanding, we have listed a few lenders, considering both scenarios.

Education Loan for Indian Institutes

Lender Name	Maximum Loan Amount (INR)	Interest Rate Range
State Bank of India	Up to COE	8.55% to 11.15%
Punjab National Bank	No upper limit, varies	Up to 12%
ICICI Bank	1 Crore Unsecured/2 Cr Secured	9.50% – 15.85%
Axis Bank	Up to 40 Lakh	13.7% – 15.2%
HDFC Credila	Up to 15 Lakh unsecured/ Secured upto COE	9.55% – 13.25%
Bank of Baroda	Up to 1.50 Crore	9.15% to 12.50%
Canara Bank	Varies, up to 50 Lakh	9.25% – 11.35%
South Indian Bank	Up to COE	12.90% – 13.65%

Education Loan for Abroad Institutes

Lender Name	Maximum Loan Amount (INR)	Interest Rate Range
SBI	Upto COE	10.15% – 10.65% (males)10.65% – 11.15% (females)
UBI	Upto COE	9.25% – 9.75%
Axis Bank	85% of Collateral	9.99% – 11.50%
ICICI Bank	1 Crore Unsecured/2 Cr Secured	9.50% – 11.25%
HDFC Credila	Unsecured Up to 30 Lakhs/ Secured upto COE	12% – 13%
Avanse	Upto 50 Lac unsecure/upto COE under Secured	12% – 13%
MPOWER Financing	Up to 100,000 USD	12.99% – 15.99%

Eligibility Criteria for Education Loans After 12th

When it comes to availing an education loan, the eligibility criteria can vary from one lender to another. However, there are some common requirements that most banks and financial institutions consider:

• The applicant must be an Indian citizen.
• Must have secured admission to a recognized university or course, either in India or abroad.
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• The age of the applicant typically falls between 18 to 35 years at the time of application.

Documentations for Education Loan after 12th

To apply for an education loan, the following documents are generally required:

Application Documents:

• Duly filled loan application form
• Passport-sized photographs
• Academic records (mark sheets and certificates)
• Admission letter from the educational institution

Co-applicant Documents:

• Identity proof (Aadhar card, Passport, Voter ID)
• Residence proof (Utility bills, Passport)

Income Documents:

• Latest salary slips or income tax returns for last 3 years with COI and Financials
• Bank statements for the last 6 or 12 months
• Business Registration proof i.e. GST, MSME etc

It’s important to note that the required documents may vary depending on the lender’s policy and the specifics of the loan.

How to Apply for an Education Loan through Wecare Capital?

Understanding how to get an education loan after the 12th is easy with Wecare Capital. All you need to do is follow the given steps –

• Check Eligibility: Begin by checking your eligibility on the Wecare Capital website.(www.wecarecapital.in)
• Consult Education Loan Counselor: Get personalized advice by consulting with an education loan counselor.
• Submit Documents: Provide all the necessary documents for processing your application.
• Get Approval and Sign Agreement: Once approved, review and sign the loan agreement.
• Disbursement: The loan amount will be disbursed as per the requirements stated in the admission letter.

Expenses Covered under Education Loans

Education loans are designed to cover a wide range of expenses to ensure that students can pursue their education without financial hindrances. These typically include:

• Interest rate: The amount of interest you’ll pay on top of the principal loan amount.
• Processing fee and time: The cost and duration required to process your loan.
• Margin money: The percentage of the total expense that the bank will not cover.
• Moratorium period: A grace period during which you are not required to make loan payments or may require to pay partial interest monthly.
• Tax benefit: Potential tax deductions available on the interest paid on the loan.
• Loan duration: The total time you have to repay the loan.
• Covered expenses: What the loan will cover, such as tuition, living expenses, books, and other academic fees.
• Prepayment terms and conditions: Rules around repaying the loan early, including any penalties or benefits.
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By carefully considering these aspects, students can make an informed decision that aligns with their financial and educational goals, setting a solid foundation for their future endeavors. And there you have it—a straightforward guide to understanding how to get an education loan after 12th, navigating the world of education loans. Whether it’s about choosing the right lender or understanding the nitty-gritty of loan options, we’ve got you covered. Remember, the right funding can set you on a path to academic and professional success without the burden of financial worry. If you’re ready to take the next step towards securing your education loan, why not start with Wecare Capital? Check your eligibility and find the best education loan tailored to your dreams. Let’s make your educational journey as rewarding as it should be!

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