Education Loan is more accessible and cheaper today than five years ago. Moreover, with the rising cost of education, education loans have become a facility by which students can fulfill their dreams. So, if you are willing to study in the top educational institutions in the country and are looking for a loan with repayment leave or moratorium, it can help you.
What things are covered in Loan:
- College / School / Fees for hostel.
- Exam / Library / Laboratory fees.
- Life insurance premium for the student, if applicable. Books/Devices/ Loan for a uniform.
- To complete the course, if necessary, purchase the computer at a reasonable cost.
- Any other expenses required to complete the course are study tours, project work, thesis, etc.
Who can get a loan:
- The person should be an Indian citizen.
- They should be admitted to regular full-time degree/diploma courses at premier institutions.
- Part-time Post Graduate Program in 'Executive for Management in Executives' offered by the Indian Institute of Management (IIM) in all institutions.
- Post Graduate Programme in Management for Senior Executive Officers (PGPMAX) proposed by the Indian School of Business (ISB) Hyderabad and Mohali campus.
Students should first decide where to take admission. Which institution and in which course you want to enroll? It has to be decided first. Generally, banks do not demand a third-party guarantor for education loans up to Rs. 4 lakhs. For the loan, the institute will first ensure that you are taking admission there. Payment of interest in income tax is the benefit of no limit. This benefit is available for 8 years from the commencement of the claim, and the student and his father have given a joint application, the student's father can also claim. The repayment of the education loan can start a year after the course is over or six months after getting a job. Both of them can be done earlier.
Process of Availing Education Loan:
Students or their parents can take education loans from banks for children's graduation, post-graduation, or professional courses. However, the Educational Institute is recognized by the government. It may be easier for you to take an education loan from the bank in which you already have an account.
- Bank's interest rate on education loan:
- 8.85% interest rate for studying in India and 10.00% for studying abroad in SBI
- Axis Bank Education Loan- 13.70% for studies in India and abroad
- Bank of Baroda Education Loan- 8.40% in India, 9.15% abroad
- Union Bank of India - 10.20% in India, 10.20% for studying abroad
How much loan amount can be:
Normally, banks give education loans up to Rs. 10 to 15 lakhs for studies in the country. In the case of foreign studies, the amount may be more than Rs. 20 lakhs. The loan amount is not regulated, and banks or financial institutions can also give more or less.
Read also: How to open SBI Digital Savings Account? What are the benefits and eligibility of this account
Keep these tips in mind for a low-interest rate on a Personal loan
Are you having trouble handling your salary? Follow these easy steps to avoid money issues
Image credit: cnbc