In Sri Lanka, like in many other countries, if one wants to have a proper job, one needs to study and to get a diploma first. It happens though that it is not always possible to pay for studies, or for the accommodation of even food if a student lives on campus. In such cases, student loans come to help. They are a good assistance for students and their parents, but one should know what loan amount one can count on and the conditions under which the loan is issued.
What is Student Loan?
A student loan is a sum of money provided by a financial institution for particular purposes related to studies. These funds can be used to pay books, the accommodation, food if a student lives in a college campus, studies and so on. The main advantage of a student loan is that usually, it is provided with a lower interest rate than any conventional loan. As well, the lending financial institution usually doesn’t request any repayments until the student graduates. Hence, getting a student loan is a wise and very feasible solution if one wants and can study in a good college or university but doesn’t have sufficient funds for it.
How to Get a Student Loan in Sri Lanka?
If you are 18 years old and more, and if you are going to study, you can apply for a student loan in Sri Lanka from any financial institution that provides them. Even if you are an employee, self-employed or unemployed, it does not matter. You are still eligible for a student loan. So, if you qualify, you need to find a financial institution, preferably a reliable bank that issues student loans and to apply for it.
Apply for a Student Loan
To apply for an education loan in Sri Lanka, you need to submit:
- A confirmation letter from your college or university that you have been accepted;
- A special form to apply for a student loan;
- Your passport or an official ID;
- The schedule of course fee and the course duration issued by your college or university.
If you work, you would need the following documents:
- A bank statement and salary receipts;
- A confirmation letter about your employment issued by your employer;
- Your passport or an official ID;
- Residence confirmation.
In most cases, some property would be needed to secure the loan. As well, a guarantor might be needed.
Student Loan Interest Rates
Even though student loan interest rates are usually much lower than the rates of conventional loans, they still apply, hence, we recommend selecting a financing institution with the most favorable conditions.
|Bank name||Interest rate||Repayment time||Max loan sum|
|Sampath Bank||12,5%||25 years||50 Mn|
|Bank of Ceylon||13%||25 years||50 Mn|
|Commercial Bank||13.5%||20 years||50 Mn|
|People`s Bank||13.5%||20 years||50 Mn|
|DFCC Bank||13.5%||20 years||50 Mn|
|NSB||13.75%||30 years||25 Mn|
Select your option depending on the loan sum needed, your possibilities to repay within the provided time and the interest rate. There are many more financial institutions providing education loans in Sri Lanka, but their conditions are much less favorable.
Is Student loan safe?
What is the best place to get a Student loan?
The best place to get your students loan might be Sampath bank if the sum is sufficient for you. But you should select your loan provider based on your needs and requirements. We would recommend a commercial bank because they are reliable.
What are the requirements for a Student loan?
One should be already accepted in a college or university and be a resident of Sri Lanka.