Education and Career Forum

Hello sir, I have cleared JEE Mains exam and get Mechanical Engineering branch at NIT Durgapur. I want to get education loan to study. Which bank should I apply to get loan a Government or Private bank?

There are several advantages and disadvantages between a Private and a Government bank in order to get educational loan.

In Private banks the processing fees are much higher as compared to Government banks.

The paper work of Private banks are much faster than the Government banks.

The interest rate policies keeps on fluctuating in Private banks, but the Government banks keeps the rate policies same for all customers.

Most of the Private banks charge a sum of Rs. 100 plus service tax to entertain you at their branch, whereas you can visit as many times as u want in a Government bank.

After all, a loan is a product that the bank is selling to the customer. They need to make profit out of it. But as a customer you should buy a product which is cheap and affordable. So, make a wise decision considering the above facts which I have mentioned and choose Government bank.

You can apply for an education loan in any bank whether it is Government or a Private bank. It is best to apply for an education loan from Government bank. To get education loan from any bank, you have to fill the application form and submit your documents like Academic Certificates, Identity Proof, Residence Proof, Income Proof, etc.,. For an education loan of more than Rs.7.5 lakhs, you have to submit Collateral Security documents and for loan amount less than Rs. 4 lakhs, no security is required.

Government banks will be better if you want to get all the benefits announced by the government. There is a central government scheme for interest subsidy if your family's income is below 4.5 lacs.

Hence, it would surely be better option to go for PSU banks. NIT is a reputed institute and banks won't have problem in granting you loan.

You can get education loan from any bank - government or private bank. It is almost the same when it comes to education loan since the terms and conditions and education loan scheme is strictly regulated by the Reserve Bank of India. You should apply for education loan in the bank which is near your residence and preferably where you have good contacts to get your loan processing done smoothly and quickly. It is better to opt for public sector banks as you can be eligible for various subsidies.