Admission in big private schools is no longer just by merit. The fees of private schools are also important. From the country’s capital Delhi to Mumbai, Noida, Bangalore and small towns, parents are troubled by the growing school fees of children. However, the dream of better education should not remain incomplete even among expensive fees. In this, school education loan can help. If you understand the correct information and eligibility rules, then it is no longer difficult to provide quality education to your child.
Can you get a loan for school studies?
Yes, in India, now not only college and university studies, but also for education from nursery to 12th, education loans are also getting the facility. Many public and private banks such as SBI, Bank of Baroda, HDFC, ICICI and some financial institutions are also giving loans for school education. This loan covers tuition fees, uniforms, books, hostel expenses and other needs, especially for those who are unable to spend the expense in expensive private schools.
Who can take school education loan?
The eligibility for taking a loan may be slightly different in different banks, but usually these conditions are common. It is necessary to be an Indian citizen. Some banks also give loans to NRIs if they have an Indian passport. The child should be between 3 and 18 years of age. The child is studying in a school recognized by CBSE, ICSE, State Board or International Board. A coal-applicant is necessary, who are parents or parents and who should have regular income.
If you are taking a loan under the government CSIS scheme, then the annual income of the family should not be more than Rs 4.5 lakh, while private banks also give loans to families with income up to Rs 8 lakh.
How much loan can you get?
Most banks give loans up to Rs 4 lakh without any guarantee. Some banks also offer loans up to Rs 10 lakh, but the government’s credit guarantee Fund Scheme for Education Loan (CGFSEL) is applied to loans up to Rs 7.5 lakh. These loans cover the expenses mentioned below.
Tuition fees and hostel expenses.
Books, uniforms, stationery.
Laptop or other essential devices.
Travel expenses of boarding school going children.
What documents are needed?
Student Documents.
Aadhar card, PAN card, passport size photo, proof of admission in school.
Co-applicant documents
ID proof, income proof like salary slip, ITR etc., bank statement
School information
Fees structure, bills, school recognition.
Security Documents (If the loan is high)
Information related to property papers or other property.
This government scheme also helps
PM Vidyalakshmi Yojana: Meritorious students get without guarantee loan, and families with income up to 8 lakh get interest subsidy up to 3%.
CSIS Plan: Those with income less than 4.5 lakh get interest rebate during the course period and one year period.
Vidyalakshmi portal: Loans can be applied in many banks through the same application.
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