Study Hotel Management with Education Loan

Most of the Indian banks offer educational loans for Hotel Management Courses by well-known reputed colleges. We believe given the right information every student has the potential to be successful. The aim of education loans is to enable every deserving student to reach their goals in life without giving away their dreams to become an hotelier due to lack of money. 

The aim of education Loan is to provide the financial support to the students who wish to pursue a career oriented course like Hotel Management Degree of diploma cleared the entry requirements, admission tests but unable, to take admission due to lack of money needed for the course fee and other expenses like hostel fees etc. during the course.

Government of India in session with Reserve bank of India (RBI) and Indian Banker's association (IBA) has framed a complete academic loan Scheme to be certain that no student in India is deprived of better schooling for need of finances. This scheme covers all type of Hotel Management Courses including bachelor and master’s degree courses offered by reputed hotel management colleges in Kolkata, India.

Education loan covers the tuition fees, books and supplies fees, hostel fees, transportation fees, health insurance fees, and also living expenses of the student. Altogether it takes care of all education related expenses during the Hotel Management Course. The banks actually don’t pay the money to the student but generally credit it into the colleges account as when required. 

The basics of the educational loan

Once the student collects the admission confirmed offer letter from the hotel management colleges, they should apply for an educational loan. Consulting the college in this regards is the best option because most of the Hotel Management colleges in Kolkata has a good reputation with various banks regarding education loans.

Banks offer loans with different rates of interest. It is important that student should involve their guardian and take some time to compare the different kind of loans various banks offering at that time. Always remember that most of the state government banks have lower interest rates in comparison to private banks. Its also better to apply to two or more banks, in case the loan application get rejected by one bank.

For more details better visit the nearest branch of the bank or visit their website. Most of the banks these days maintain interest rates on an average between 11% to 14%. Here we found some important information on education loan offered by some banks with their interest rates.

Sl.	Bank Name	Loan Value Up to	Rate of Interest	Contact
1	Bank of Baroda	Rs 20 lakhs	12% / Year for loans above Rs 4 lakhs	Local Branch
2	Canara Bank	Rs 20 lakhs	12% / Year for loans between Rs 4 and 7.5 lakhs and 9.5% for loans greater than Rs 7.5 lakhs.	Local Branch
3	Axis Bank	Rs 20 lakhs	13.75% to 15.75%. / Year	Local Branch
4	HDFC Bank	Rs 20 lakhs	13.5%. / Year	Local Branch
5	ICICI Bank	Rs 20 lakhs	15%. / Year	Local Branch
6	Indian Overseas Bank	Rs 20 lakhs	15%. / Year	Local Branch
7	State Bank of India	Rs 30 lakhs	13.75% for between Rs 4 – 7.5 lakhs, 11.75% for above Rs 7.5 lakhs.	Local Branch

List of other banks offers education loans are as follows: 

 AndhraBank, Allahabad Bank, Axis Bank, Bank of Baroda, Bank Of India, Bank of Maharashtra, Bank of Punjab, Bank of Rajasthan, Bassein Catholic Bank, Bharat Overseas Bank, Canara Bank, Catholic Syrian Bank,Central Bank of India, Centurion Bank of Punjab, Citi Bank,City Union Bank, Corporation Bank, Dena Bank,Development Credit Bank, Dhanalakshmi Bank, Federal Bank, HDFC Bank, HSBC, ICICI Bank,Indian Bank, Indian Overseas Bank, IDBI Bank, ING Vysya Bank, Jammu & Kashmir Bank, Karnataka Bank,Karur Vyasa Bank, Lakshmi Vilas Bank, Oriental Bank of Commerce, Punjab & Sind Bank, Punjab National Bank, Ratnakar Bank,Saraswat Bank, SBI Commercial and International Bank, South Indian Bank,State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of India (SBI),State Bank of Indore, State Bank of Mysore, State Bank of Patiala,State Bank of Saurashtra , State Bank of Travancore, Syndicate Bank, Tamilnad Mercantile Bank Ltd, Thane Janata Sahakari Bank, UCO Bank, Union Bank of India, United Bank of India, United Western Bank.

Eligibility criteria required for applying Education loans and step by step approach.

1. The eligibility criteria are the most important issue for Education loan. Most Indian banks offer educational loans for long term programs like bachelor degree, master degree and minimum 3 years Diploma in Hotel Management Courses offered by reputed colleges. Short term courses like certificate in hotel management courses are normally not eligible for loan grant. 
2. Generally, when Education loan is required more Rs 5 lakhs, a cosigner mostly parents has to sign the loan with the student, agreeing that he or she will pay the students debt, in case the student fails to repay the loan. 
3. If the loan amount is more than Rs 4 lakhs, students have to provide usually 15% of the loan amount to the bank [Margin money].
4. For loans about Rs 7.5 lakhs, Student will have to offer the bank an LIC policy or documents of immovable property in his or her name approved by the parents.
5. Student need to fill-up and document a KYC detail before applying for the loan to process, it is also recommended to have a savings account at the branch where he / she is applying for the loan to assured that the student has the ability to repay and that documents provided are accurate.

Documents and papers required to submit.:

Student should get in touch with the banks and collect the list from the branch mentioning all documents and papers required to submit. A common list of documents and papers required by banks are given below

• Identity Proof: Driving license, Passport, Pan card, Voter's identity card, Aadhar card, and a verification letter signed by a recognized public authority or gazeted officer for identity and residence.
• Address Proof: Passport , Bank account statement, Ration card, Aadhar card, Voter’s ID card, and Telephone bill/ water bill/ electricity bill.
• Signature Proof: signature verified by the bank, Driving license, PAN card, Passport copy, and KYC
• Mark sheet of last qualifying examination
• Proof of admission to the course
• Course fee structure and other expenses detail
• Copies of letter confirming scholarship if applicable
• 2 to 3 copies of passport size photographs
• last six months Bank account Statement

Repayment of the loan : 

For repayment of the loan student will have a moratorium period or holiday period, only after which he or she will be required to start with his or her installments. The period could last up to the duration of the hotel management course or up to the time period till the student find a job and varies from bank to bank, but in most cases hotel management students gets a job just before completing the course through campus interview. Course period + 1 year or 6 months after getting job, whichever is earlier.

It is always a wise step to cross check the terms and conditions written in the banks agreement and to ask for any clarification in case of not understanding any terms and clauses. Remember that the amount of loan applied for and the amount received during disbursement may get slightly lower due to the exchange rate at the time of disbursement.

These are just a few facts student should know while applying for a bank loan. Below is the list of few reputed and popular hotel management colleges in kolkata support education loan facility.

Subhas Bose Institute of Hotel Management (SBIHM) School of Management, Kolkata (West Bengal)
University Road, Nilganj Kajibari, PO : Malikapur , Kolkata (Kolkata Dist.) - 700126

NIPS School of Hotel Management, Kolkata (West Bengal)
297, Mahishbathan , Sector-V, Salt Lake City , Kolkata (Kolkata Dist.) - 700102

Institute of Hotel and Restaurant Management (IHRM), Kolkata (West Bengal)
Tegharia, Sonargaon Park, Sonarpur , Kolkata (Kolkata Dist.) - 700150

Guru Nanak Institute of Hotel Management, Kolkata (West Bengal)
157/F, Nilgunj Road, Panihati , Kolkata (Kolkata Dist.) - 700114

IIAS School of Hotel and Tourism Management, Kolkata (West Bengal)
IIAS,ICMARD Bldg.,5th Floor,Block 14/2,C.I.T. Scheme VIII(M),Ultadanga , Kolkata (Kolkata Dist.) - 700067

BNG Hotel Management Kolkata, Kolkata (West Bengal)
K-515,JL-21,PO-Krishnapur,Tarulia , Kolkata (Kolkata Dist.) - 700102

Indian Institute of Hotel Management (IIHM), Kolkata (West Bengal)
EN 33, Salt Lake, Sector V, Opp Bank of Baroda , Kolkata (Kolkata Dist.) - 700091

Institute of Advanced Management (IAM), Kolkata (West Bengal)
AN 1, Nayapatti, Sector - V, Salt Lake , Kolkata (Kolkata Dist.) - 700102

International Institute of Hotel Management (IIHM), Kolkata (West Bengal)
X - 1, 8/3 Salt lake, Sector - 5, Salt Lake Electronic Complex , Kolkata (Kolkata Dist.) - 700091