Along with growing awareness about the importance of education to succeed in the knowledge , the cost of quality education too is growing fast.

In recent years, a large number of students, especially those pursuing professional courses in India or abroad, are availing of education loans.

According to latest data from the Reserve Bank of India, education loans disbursed by Indian banks gross 51% to Rs 15,000 crores for the financial year ending March 2007.

An education loan typically has three repayment options

• Education loan with repayment moratorium. Many banks stipulate repayment within 1 year after completing the course or 6 months after getting a job, which ever is earlier.
• Interest alone is paid during the period of course. After the course completion, you start paying the actual EMI (principle and interest).
• You start repaying the loan through EMI immediately after loan disbursement, in which case you could get the loan at an interest rate lower by about 1 per cent.

The repayment conditions vary from bank to bank. So, talk with as many banks as possible to get the repayment option that suits your requirements.

Expenses covered by education loan

The amount of education loan sanctioned is in relation to the expenses that you will incur while pursuing the course. The most common expenses covered include:

• Fees payable to college/hostel
• Examination/Library/Laboratory fees
• Purchase of Books/Uniforms
• Caution Deposit/Building Fund/Refundable Deposit

To help you in getting the Bank Loan easily, NETGi Campus has tied up with following banks for providing education loan facilities:

• Canara Bank
• Syndicate Bank
• Punjab National Bank
• Union Bank of India
• Bank of India

Documents required

Different banks have different document requirements for granting education loans. But here are some of the documents you will typically have to submit along with your loan application:

• Mark sheets of the last qualifying examination.
• Proof of admission/ scholarship.
• Schedule of expenses for the specified course.
• Bank account statement for the last six months.
• An income tax assessment order for the previous two years.
• A brief statement of assets and liabilities of the co-borrower, which is usually the parent or guardian, and proof of income, if any.
• Passport-size photographs.

Note : the specific list of documents varies from bank to bank.