Nainital Bank Education Loan

The Nainital Bank offers up to Rs. 75 lakhs for students for technical or professional courses under their Gyani Education Loan scheme. This loan targets costs such as fees, tuition, examination fees, books, laptops, and other learning materials and living expenses such as accommodation and food expenses. Permissible co-applicants are parents, father/mother-in-law, siblings, and the spouse. Interest rates stand between 12% and 14%, although borrowers with collateral and female students enjoy a lower rate. The term of repayment also differs, it can be up to 10 years for loans not exceeding 7. For amounts up to five lakhs, the moratorium will be 3 years and for higher amounts, it will be 15 years with an option for paying only the interest amount during the moratorium period.

Tip: If you own collateral, then go for a collateral loan as the interest rates will be lower. Check other eligibility parameters considered by banks regarding an education loan to choose the best education loan.

A few schemes were introduced by the government to help students by providing interest subsidies in their education loans

Dr. Ambedkar Central sector scheme

The scheme is to provide interest subsidies to students from EBC and OBC backgrounds(family income should be less than 8 lacs per annum). 

Padho Pardesh scheme

The students from minorities(Buddhists, Sikhs, Muslims, Jains, Christians, and Zoroastrians) having a family income of fewer than 6 lacs per annum are eligible for interest subsidies under Padho Pardesh Scheme.

Note: The Padho Pardesh scheme has been stopped by the government. However, previous beneficiaries(before 31st march) will receive the interest subsidy as usual. 

Central Scheme for Interest Subsidy for Economically Weaker Sections

Students from Economically weaker sections of society whose family income is less than 4.5 lacs per annum are eligible for interest subsidies in the moratorium under this scheme.

Read the below documents to start a Nainital Bank education loan.

Section 1: Application form

• Fill out the Nainital bank education loan application provided by the WeMakeScholars Financial officer with your signature and 2 photographs. 

Section 2: Required documents for the applicant and co-applicant

• Applicant Identity proof
  • Aadhar card
  • Passport in case you are going abroad
  • Pan card
• Residence proof
  • Aadhar card
  • Utility bills(electricity bill, telephone bill)
  • Voter ID card
  • Bank account statement
  • Ration card
• For Co-applicant
  • Salaried: Last 6 months' bank account statements
  • Self-employed: 1-year business transactions
• Self attest Personal Asset and Liability statement

Section 3: Academic documents of the applicant

• 10th, 12th, degree mark sheets, and certificates
• Proof of admission for the course with the duration of the course
• Fee structure
• Scorecard of GRE/GMAT/IELTS
• Ranking of the university

Section 4: Financial co-applicant income documents

• Salaried
  • Payslips for the last 3 months
  • Form 16(last 2 yrs)
  • ID card of the organization working in
  • ITR of the last 2 yrs
• Self-employed
  • ITR of previous 3 years
  • Balance sheet and profit and loss account for last 3 yrs
  • Address proof of your business

Section 5: Other documents

• Your financial officer will provide a format of the letter in which you have to state that the leftover expenses apart from the loan will be covered by the co-applicant
• A Notarised joint affidavit of the student and co-applicant in the standard format of the bank(the format will be provided by your financial officer)

Section 6: Other additional documents

• Receipts of any payment made to the university for tuition fees or admission fees, if you want reimbursement
• Statement of any pending loans
• Explain if you have had any gap in your studies through a letter on Rs 100 stamp paper whose format will be provided by WeMakeScholars financial officer. 

Section 7: Documents for collateral (optional)

• These are only required when you are going for a collateralized loan. The collateral documents vary with state and so talk to your financial officer for accurate details.

Follow the education loan process through WeMakeScholars to apply for an education loan from Nainital bank.

• Fill out a common application form or request a callback from WeMakeScholars
• A financial officer from WeMakeScholars will get in touch with you and check your eligibility for an education loan by asking some basic questions
• Once done with checking the eligibility, he/she will then connect you to eligible lenders and will also send you a document uploading link to upload all the required documents
• The next process will be carried on by the lenders until the loan is sanctioned. However, your financial officer from WeMakeScholars will be in touch with you throughout the process and will clear all your doubts.
• You will get the loan sanction in the promised time provided you follow the process diligently.

Why you should not go directly to banks?

The education loan process directly through banks has the following consequences.

• The interest rate will be a little higher when compared to going through WeMakeScholars
• Inaccurate and incomplete education loan process information
• Pay several visits to the bank for the complete list of documents
• You will have a lot of hidden charges and the process will also be longer
• The chances of loan sanction will be lesser than through WeMakeScholars

To calculate the EMI for a Nainital Bank Education Loan, consider this example: a loan amount of 10 lakhs at an interest rate of 12% per annum, with a 2-year course duration and a 10-year repayment period, excluding the moratorium period (course duration plus 1 year). The EMI schedule shows an EMI of 18,479, with the interest portion decreasing and the principal portion increasing each year. By the end of the 10th year, the loan is fully repaid. This structured approach helps manage repayment effectively over time.

If confused with the calculation of EMI, request a callback from WeMakeScholars and ask him/her to calculate it for you.