Here we will discuss about much vital topic how to get Education Loans and their Eligibility criteria .
The cost of education in India increased many folds in the last few years.
Also the cost of education is quite high and not feasible to the most of the desired students.
The cost of studying in reputed institutions of India is very high which is out of reach for middle and poor class people.
Responsible parents make savings to make their children educated and invest in many of the plans in markets like FDs,mutual funds etc.
Despite all these, education loans play an important role in providing the amount that is required for their higher studies.
Here ,we will discuss everything about the how to get education loans, intrest rates and other details .
What is education loan?
It provides student with money that is required for basic courses tuition fees, accomodation ,exams and other essentials that are needed.
Who is eligible to apply for loan?
A student is generally the applier who wants to pursue his/her education in India or abroad.
What are the sectors under which loan is provided to the students?
A student can avail loan for a full time,part time or vocational course according to the needs .
It may be in graduation,post graduation or higher studies in any field including science,medical,arts, architecture, management etc.
What are the documents required for education loan?
To apply for a loan ,one must take admission in the recognised university or college in india.
The applicant must complete his primary education upto higher secondary.
There is no certain age limit but some banks have Some additional documents are also required such as admission letter of the institution,fees structure, matriculation certificate,higher secondary marksheet .
The income certificate is also needed of co-applicant or guardian.
Is there any collateral requirements in loan procedure?
The banks finance upto 100% of the loan depending on the amount.
Banks will ask collateral for the loan if the loan amount is more than 7.5 lakhs.
And a third party is required for the amount between 4 lakhs to 7.5 lakhs.
How the amount is paid to the borrower?
The amount is directly paid to the institution according to the fee structure.
What is the interest rate asked by the banks?
The interest rates may very from 7.5% to 11% depending upon the banks.
How is repayment be made ?
The repayment us made by the student.It starts when the course is completed.
The repayment is made between 5-7 years,but can be extended accordingly.
What are the tax benefits associated with education loan?
Section 80E of the IT acts allow for deduction on the interest paid on the repayment.
Written By – Deepak Kumar (Senior Analyst)
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