Sir my son has been admitted to the B Tech course in Jecrc university jaipur through Kalvium Company. I want to take a study loan for him from the 3rd year onwards. How will it, be possible for him?

Ans: It’s wonderful to know your son has secured admission for B.Tech through Kalvium at JECRC University, Jaipur. That’s a proud achievement. Choosing to support his education through a student loan from the 3rd year is thoughtful and practical.

Let’s explore this from all angles—cost, eligibility, repayment, and impact—step by step.

? Loan eligibility for the student

– Your son must be an Indian citizen.
– He should be enrolled in a recognised Indian university. JECRC is recognised.
– He must have cleared the previous semesters.
– Co-borrower is mandatory. Usually, the parent or guardian becomes the co-borrower.
– CIBIL score of co-borrower matters. A score above 700 improves loan chances.

? Loan coverage and expenses included

– Most banks and NBFCs cover tuition, hostel, exam, library, and lab fees.
– Travel expenses, laptop cost, and study material can also be included.
– Some also allow a fixed monthly living expense to be included.

? Loan amount generally approved

– Rs 4 to 7.5 lakhs: Usually sanctioned without collateral.
– Rs 7.5 lakhs and above: Needs collateral security.
– Government banks usually offer up to Rs 10 lakhs for domestic education.
– NBFCs offer higher, but charge more interest.

? Documents usually required

– Admission letter from JECRC University.
– Kalvium tie-up acceptance or enrolment confirmation.
– Course fee structure on university letterhead.
– Academic records of the student (10th, 12th, current semester).
– KYC of student and co-borrower.
– Income proof of co-borrower (salary slip or ITR).
– Bank statements of last 6 months.
– PAN and Aadhaar for both.

? Which banks you may explore

– PSU Banks like SBI, Union Bank, Canara Bank.
– Private banks like Axis, ICICI, IDFC First.
– NBFCs like Avanse, InCred, Auxilo, HDFC Credila.
– Some offer pre-admission approval too.
– Government-backed Vidya Lakshmi portal also lists education loans.

? Role of Kalvium in loan support

– Kalvium-backed programs are skill-based, with internships.
– Banks will review the internship offer and earning potential.
– This may help boost the employability profile and repayment capacity.

? From 3rd year – special consideration

– Taking a loan mid-course is allowed.
– Banks may ask for academic records of 1st and 2nd year.
– Consistent academic performance builds trust for approval.
– Bank may disburse loan directly to the college account.

? Interest rate range and type

– For government banks: Around 8.5% to 10.5%.
– For NBFCs: Can go up to 13%-15%.
– Some banks offer interest subsidy (explained below).
– Simple interest may apply during study period.
– After moratorium, full EMI starts with compound interest.

? Interest subsidy by Government

– Central Sector Interest Subsidy (CSIS) is available.
– Applies to families with income less than Rs 4.5 lakhs yearly.
– Covers interest during moratorium (study period + 1 year).
– You must apply through a government-recognised bank.
– Co-borrower’s income proof is mandatory.

? Moratorium period and EMI start

– Moratorium = course duration + 1 year.
– EMI starts after this period ends.
– You can choose to pay only interest during study years.
– Or you can opt for full EMI if financially comfortable.
– Early interest payments reduce overall burden.

? Tax benefit under Section 80E

– Interest paid on education loan is tax deductible.
– There is no cap on deduction amount.
– Benefit can be claimed for 8 years.
– Only the interest part of EMI qualifies.
– Co-borrower (parent) can claim if loan is in their name.

? Impact on your credit profile

– Loan gets reflected in both student and co-borrower’s credit report.
– Timely EMI ensures good credit record for your son.
– This builds financial discipline and future loan eligibility.
– Any missed EMI will affect your CIBIL score.

? Loan process and disbursement timeline

– First step: Apply online or at bank branch.
– Approval may take 7–15 working days.
– Banks may verify documents, co-borrower’s profile, and course details.
– Loan is disbursed semester-wise or yearly, not lump sum.
– Funds go directly to the college account, not student.

? Things to avoid while selecting lender

– Don’t choose lender just for quick approval.
– Check prepayment charges. Many banks don’t charge, NBFCs do.
– Compare processing fees (ranges Rs 5,000 to Rs 15,000).
– Fixed interest loans can become costly in long run.
– Choose floating rates if possible, with option to refinance.

? Loan repayment post studies – a snapshot

– Total tenure is usually 7–10 years after moratorium.
– Option to extend tenure reduces EMI but increases interest.
– Foreclosure allowed after 6–12 months in most cases.
– If placed early, start repayment early to save interest.
– Some banks allow part payments without penalty.

? In case of job loss or delay in placement

– Banks usually grant grace period of 3–6 months.
– But written request must be submitted with justification.
– This is at bank’s discretion, not mandatory.
– Always stay in touch with bank during hardship.

? Collateral requirement – when and how

– Loans up to Rs 7.5 lakhs are unsecured.
– Above that, banks ask for residential property, LIC policy, or FD as collateral.
– Property should have clear title and be in India.
– Co-borrower must be legal owner or co-owner.

? Alternatives if loan is rejected

– Explore NBFCs that are education loan specialists.
– Consider gold loan as last resort, if amount is low.
– Loan against FD can be cheaper if funds are available.
– Educational scholarships may ease burden. Explore Kalvium or JECRC support.

? Should you delay and save instead of loan?

– From 3rd year, time is short for meaningful saving.
– Education is a productive loan.
– Don’t compromise child’s future for short-term liquidity.
– Use your earnings to support early part.
– Let loan fund the remaining.

? Final documentation check-list reminder

– Student KYC and 10th/12th mark sheets.
– College admission proof and fee breakup.
– Co-borrower’s KYC, income, PAN, Aadhaar.
– Previous academic semester reports.
– Bank passbook or salary slips.
– Property documents, if collateral required.

? Final Insights

– Education loan is a practical way to invest in your son’s career.
– From 3rd year, approval depends on consistent performance and clear documentation.
– Compare banks and NBFCs patiently.
– Prioritise lower interest, transparent terms, and service support.
– Avoid over-borrowing.
– Make your son part of the repayment journey.
– This builds responsibility and discipline.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment