How Education Loans Can Solve Your Financial Needs for Higher Studies in India
Education is the tool for individual and collective development. It is only through proper education that one can progress in life and live a life of dignity. However, with the rise in fees of college and universities, it often gets hard for students to avail best quality education in India, especially at the Ivy League institutions. It so happens that in spite of being eligible, students have to opt out of from getting admitted to such institutions due to financial stagnancies.
Education loans fuel your dreams for higher education in India
Fees for engineering courses in the country vary between 5 to 12 lakhs, medical courses charge close to 50 lakhs in private medical colleges while MBA degrees are available at a cost of more than 10 lakh in the country. To help eligible students with fund issues Indian banks now offer attractive education loans. Banks of India, both private and public, provide financial support to students aspiring for higher education from premium institutes. They offer education loans which give opportunities to fulfil career goals of Indian youth.
The loans are often tailor-made to suit particular needs. It has now become easier to fuel your dreams with education loans for higher education in India. Students can apply for education loans for education in India and get up to 10 lakhs INR as loan amount along with an of an insurance cover. Doorstep services and quick disbursal of funds after you apply for education loans for Indian education will make your experience further smooth.
Eligibility for applying for an Education Loan for higher education in India
1. Resident Indians
2. Individuals between the ages of 16 and 35
3. For Loan amount 4lac 7.5lac: Tangible collateral security along with Parents to be joint borrower(s)
There is no need for any security for loans up to Rs. 4 lakh, only parents have to be joint borrower(s). For loans above Rs. 7.5 lakh, a tangible collateral security of suitable value acceptable to bank is required and parents need to be joint borrower(s). Collateral securities as generally approved by banks include residential property, Bank Fixed Deposit, LIC, NSC or KVP Policy. Loan repayment tenure is up to 10 years for a loan amount of Rs. 7.50 lakhs and up to 15 years for loans above Rs. 7.50 lakhs.
There is also a moratorium/repayment holiday available on for select courses against education Loans for Indian Education. Students have the option of servicing simple interest during moratorium period. The simple interest will be designed on the loan money given out and is payable monthly. Options of repaying loans are either through a Standing instruction, ACH or post-dated cheques. These loans also offer tax benefits under section 80(E) of the Income Tax Act 1961.
Benefits of Education Loans
1. Education loan is available at lower rates than personal loan.
2. The Comprehensive Educational Loan Scheme of GOI covers all courses in India.
3. Under the government-sponsored subsidy schemes like ‘Central Scheme to provide Interest subsidy’ (CSIS), any Indian student including those from economically backward segments can apply for education loans
4. Applicable for all courses in India, be it graduation, post-graduation, diploma or vocational courses.
5. Easily available and are in fact a priority product in all banks according to RBI guidelines.
6. These loans come with many additional benefits. Caution and building deposits, laboratory tuition, examination, hostel and library fees, money for buying books, instruments and uniform are some of the components that comes with education loans.
7. To support education among girls banks charge a low interest rate for girl students.
Author: Baishali Mukherjee
Profile- An independent writer and journalist for last nine years; presently working with Education World, Entrepreneur India, Scrabbl.com and Stoodnt.com. Worked as the content head for four books and have articles and features published in leading print and digital media spaces.
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