All in one guide for education loans: All you need to know in one place!

Cynapse has launched India’s first WhatsApp-based education loan. It has partnered with 11 major public and private sector banks exclusively to offer education loans for students. Cynapse has also developed India’s first Whatsapp-based process to make enquiring about and applying for education loans as easy as possible for students. Cynapse doesn’t charge students and has no hidden fees or processing charges.

When it comes to education or student loans, students have a lot of questions regarding the same:

In this blog post, we try and address all major questions to help you with your education loan. See detailed answers to the frequently asked questions below:

1. How much maximum education loan can I get?

Education loan covers your tuition expenses, living expenses, travel cost, stationary/laptop, and in certain cases additional equipment like a motorcycle as well. Education loans are designed to cover all expenses necessary to complete your education successfully. For study abroad programs, the cost of applying for a visa is not covered under education loans. In the case of secured loans, banks sanction the loan only if you are able to show that you are able to cover the entire cost of your education using the collateral that you have plus your own funds. For example, if your total cost of education is INR 20 lakhs, and you have applied for a loan of 10 lakhs, you need to provide collateral of 10 lakhs or more and also show proof of your own funds for the remaining 10 lakhs to complete your education. In the case of unsecured loans as well its similar. So it’s always better to apply for the maximum amount possible as your sanctioned amount for your education loan and only utilize what you require. 
To know more about what all are covered under education loans, please visit: https://cynapse.co.in/what-is-covered-under-education-loan/

2. What are the criteria for getting an education loan?

Banks do consider general guidelines for the consideration of education loans. For more information about various criteria, you can visit: https://cynapse.co.in/who-is-eligible-for-an-education-loan/

3. Will education loan affect CIBIL score?

Like other loans, education loans can also affect your CIBIL score. Various banks like SBI, Union Bank, Bank of Baroda and other private banks do not specify a minimum CIBIL score for an education loan as such. If there is a history of education loans or other loans that the student has previously taken and defaulted/restructured, then obtaining a new education loan might be difficult as your CIBIL score might be low in this case. Having said that, on the other end, you can improve your CIBIL score by utilising your education loan. Do visit this article to know how: https://cynapse.co.in/how-education-loans-can-boost-your-cibil-score/

4. Education loan eligibility without collateral?

It is possible to get collateral-free education loans for both international/study abroad courses and select tier-one domestic universities. To know about how to choose a security-free education loan for your abroad visit: https://cynapse.co.in/education-loan-for-abroad-studies-without-collateral/

Unsecured (without collateral) education loan has both pros and cons when compared to secured collateral-based loans. The following article has detailed information on the various procs and cons that’ll help you find which loan is best suited for you: https://cynapse.co.in/secured-v-s-unsecured-loans-what-should-i-choose/

5. Where to apply for an education loan?

Cynapse has made getting an education loan truly a seamless experience for students. It has boiled the process down to 3 simple steps: Initiate conversation on Whatsapp, know detailed info on your profile and eligibility across banks, and apply for & get a loan from the best possible banks. You can get a detailed overview of the process here: https://cynapse.co.in/student-education-loan-on-whatsapp/

6. When does an education loan EMI start?

Many students who avail of educational loans for their higher education (graduation or post-graduation) will be first-time borrowers. They might not have any idea of how a loan and subsequent interest calculations work. In this article, we try to give you an overview of how interest rates (simple interest and compound interest) affect your overall repayment amount: https://cynapse.co.in/interest-calculation-of-education-loans-during-studies-moratorium-period/

We hope you found the article relevant and it helped you choose between a secured or an un-secured education loan. Stay tuned with the latest news on the education sector by following our Instagram handle @cynapseindia. Write to us at contact@cynapse.co.in for clarifying any of your queries and we’d be happy to help.