Information About Education Loan

What does the Education Loan cover?

Our Education Loan covers:

• Tuition fees
• Hostel expenses
• The exam, library, and Laboratory fee when applicable
• Travelling expenses
• Other varied costs

Interest Rates

We offer competitive personal loan interest rates starting at 10.99%. However, education loan eligibility, financial institution, your future earning capacity are some of the factors that determine the interest rates for the loan offered.

How much EMI do you need to pay?

Equated Monthly Instalment (EMI) depends on the principal loan amount, the interest rate charged and the period for which the loan is taken.

You can choose your EMI amount that is comfortable to you by using the Education Loan EMI calculator.

How can you repay an Education Loan?

You can decide how you want to repay your personal loan for education. For a fixed amount of loan and interest, you can choose the tenure and EMI that is comfortable for you. The longer the tenure, lower will be the EMI. You can also prepay your education loan after meeting defined terms and conditions. 

You can pay your loan through auto debit or ECS facility. In exceptional cases, you can also opt for a post-dated cheque payment facility.

Eligibility

You are eligible for an Education Loan if you are an Indian National, between the age of 16-26 years and have a good past academic record. We expect you or your parents to have a stable income source. You should either show security or have a guarantor and your eligibility also depends on the credit history of your co-applicants. 

Documentation

These are the documents you will need to submit:

• Photo identity proof of both the student & parent (any one): Voter ID/Passport/Driving license/Aadhaar Card
• Attested Marks Sheets & Certificates (from 10th standard)
• Admission Letter as issued by the admitting School/College/Institute
• All essential documents issued by the admitting School/College/Institute, including prospectus, breakup of fees, etc.
• Income Proof - Bank statements for the past six months
• Salary slips for the last three months & ITR of Parent/Guarantor
• Studying Abroad-, Entry Permit, Admission letter & I-20 Form from Foreign Institution
• Property documents (if immovable property is offered as security)
• If Employed- Resignation letter, Acceptance of Resignation letter or Sanction letter for study leave.

Find out more about Education Loan Eligibility and Documents for further details.

You have to meet some basic conditions to get the Education Loan. At Tata Capital, we believe in extending a loan with minimal paperwork, competitive interest rate and flexible EMI plans .Check your Eligibility here.

What’s the maximum amount of Education Loan you can avail?

The maximum amount will depend on your needs and eligibility. Typically, the maximum loan amount approved to study domestically is ₹ 15 lakhs and internationally is ₹ 30 lakhs. 

What is an Education Loan EMI Calculator?

Education Loan EMI calculator helps you to understand the EMI that you will pay towards the principal payments and interest payment over the loan tenure. Use the EMI calculator to know how much money you can pay monthly over a course of time to repay your student loan. With the help of our education loan EMI calculator, you can plan your monthly instalments and conveniently pay off the loan. 

What does the Education Loan EMI Stand for?

EMI stands for Equated Monthly Instalments. It is the payment that you give for any education loan undertaken for a fixed tenure to pay off the loan.  You can take any time between 12 to 84 months to repay your loan with TATA Capital. Your EMI will include principal and interest payments made every month towards the repayment of the loan. Though the amount of EMI does not change, the percentage of principal & interest will change month on month.

How to calculate your Education Loan EMI using a calculator?

Enter the following information to calculate your EMI:

• Education Loan Amount (the loan amount you wish to get)
• Interest Rate (Tata Capital ‘s Education Loan interest rate begins at 10.99%)
• Loan Tenure (Tata Capital offers 12 -84 months of time)
• Click the Calculate button. The system shows your EMI monthly break-up of both the interest and principal payment. 
• If the Education Loan EMI is higher or lower than you want to pay, edit the principal amount and follow the same steps from 2 to 4.

The 3 Hows of deciding the right EMI

• How soon do you want to pay off the education loan?
• How much can you afford to pay in a month?
• How much of an interest rate are you comfortable with?