YES Bank Education Loan for Higher Studies

YES Bank Education Loan for Higher Studies

This YES Bank study loan helps students finance their education and realise their dreams of pursuing higher education at recognised educational institutions. The loan can be availed for all expenses directly related to the course including for fees, purchase of books, laptops, hostel fees, lab fees, examination fees, etc. The maximum loan amount depends on the repayment capacity of the borrower and co-borrower. YES Bank offers quick approval service, low-interest rate and minimal documentation formalities for this loan.

Features of YES Bank Education Loan

Why this Loan?

• The loan is meant to help students who have secured admission into a higher education course in a recognised institution through entrance test or merit-based selection process
• This YES Bank Education Loan is disbursed as a series of payments over the required number of years and not as a lump sum
• Borrowers can avail Tax deduction under Section 80E on interest paid, if applicable

Loan Amount

• The maximum loan amount to be sanctioned for each applicant is decided by the bank on a case-to-case basis. The bank takes the income and repayment capacity of the borrower and co-applicant into consideration to sanction the loan

Interest

• The bank offers the education loan at a rate of 12.0% to 14.0%

Repayment

• The bank claims to offer “flexible repayment and tenure option to suit your needs”. The actual repayment period is not mentioned on the website as of November 2020. Please check with the bank for more details
• It charges a penal interest at 24% per annum from EMI due date if any EMI is unpaid or overdue
• The bank allows the loan to be prepaid in part of full without any charges after the moratorium period ends

Security Needed

• As of November 2020, this information is not available on the bank’s website. Please get in touch with the bank for details

Eligibility

• The applicant must be an Indian national
• The student should have gained admission into a recognised higher education course in a recognised institution in India or abroad through Entrance Test or Merit-based Selection process

Borrower Contribution to Total Cost (Margin Money)

• As of November 2020, this information is not available on the bank’s website. Please get in touch with the bank for details

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 20 lakh in which case if the borrower has to provide a margin money percentage of 10%, then she will have to contribute Rs. 2 lakh (10% of Rs. 20 lakh) while the bank offers the rest.

Processing and Other Charges

• If applicable, borrowers may need to pay up to 1% of the total loan amount or Rs. 2,000 whichever is higher
• YES Bank charges upto 6% of the outstanding balance prepaid if the loan is s foreclosed or prepaid in part during the moratorium period. There are no prepayment charges if the loan is prepaid after the moratorium ends

Other Features to Know

• The bank may ask for the student’s progress report to be submitted with the bank at regular intervals
• The loan is disbursed directly to the school, bookseller or publisher, computer seller, and so on and not to the applicant(s)

Documents Needed

• Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
• A declaration/ affidavit from the borrower confirming that, no educational loans have been availed from other banks
• Two Passport Size Photographs of student, applicant and/or guarantor
• Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
• Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
• Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
• Admission Letter, Course Details and Prospectus as proof of admission
• Fee Details with Demand of Fee by the Institution
• All Proofs of Past Academic Record including Mark Sheets and Certificates
• For the co-borrower, documents as age, ID, signature, address, employment/business/income proofs are required
• For studying abroad, a self-attested copy of the passport is also required along with a self-attested form issued by the institute for visa purposes

Reference Facts:

• YES Bank Website: www.yesbank.in
• Headquarters: Mumbai, Maharashtra
• Call Centre Toll-Free Number: 1800 1200