Education Loan Process After 12th there is a shortage of money for engineering, medical or other higher education degree? So you take the help of education loan. How to get education loan? It has been told about this in this article.
Many students have the possibility of higher studies, but they miss out because they cannot afford tuition fees, living in cities, etc. The cost of studying in top universities is increasing continuously. Many parents save for their children through Fixed Deposits ( FDs ), Mutual Funds etc. Yet the cost of studies exceeds the amount saved. It is not easy to meet the cost of higher education. This is where the Education Loan comes in handy. It covers your higher education expenses and helps you fulfill your dreams. Now the question is how to get education loan? Which documents are required for this? If you also want to take education loan for further studies, then in this article all the information related to it has been given.
About Education Loan
Education loan (Education loan) is the loan received for the expenses related to education after 12th in India or abroad such as tuition fees, hostel fees, etc. All private and public sector banks give education loans. Government banks usually provide Education Loan Interest Rate at a lower interest rate than private banks.
Education Loan Eligibility
A student can take loan for any kind of studies. Be it graduation, post graduation or diploma. Its applicant should be a citizen of India. Income tax exemption is also available on education loan interest payment under Section 80E of Income Tax.
Types of Education Loan:
Undergraduate Loan: This loan can be taken for any graduation course. The applicant can take this loan to study in the country or abroad after completing his schooling.
Career Education Loan: Taken for any career oriented course. Career education loan is available to study from a government college or institute.
Professional Graduate Student Loan: Professional Graduate Student Loan can be taken for Post Graduate (PG) or PG Diploma or other higher education programs after taking Bachelor’s degree.
Loan for Parents: Parents who cannot afford the education of their children can take a parent loan from the bank. However, it is necessary to have a co-applicant for availing any kind of education loan.
Documents for Education Loan
- Age proof
- passport size photo
- School, college or university marksheet
- ID proof
- Address proof
- Complete details about the course
- pan card and aadhar card
- Income proof and bank passbook of parents
Keep these things in mind before taking education loan
Citizenship of India: Education loan in the country is available only to Indian citizens. The age limit fixed by the banks for the students is 16 to 35 years.
Generally, education loan is easily available for government recognized institute or college. The student taking the loan must be selected in any college or university in the country and abroad.
One can get a loan of up to Rs 10 lakh to study in India. At the same time, a loan of up to Rs 20 lakh is available for studies abroad.
Apart from interest rate, get information about processing fee, prepayment, late fee before taking education loan from any bank.
Get information about loan amount, guarantor from the bank. Usually a guarantor is required on the loan amount.
The process of repayment of education loan starts 6 months after the completion of the course. Some banks give more time. Therefore, it is better to know about all the terms and conditions including the repayment tenure, EMI, in advance.
Is it right to take education loan?
People take loans to meet their needs. No matter what kind of loan, it is not good. When you take a loan, you are paying interest. But modern life is such that it is almost impossible without loans. If the college or university is good, degree means better job, better earning opportunities, then there is no problem in taking loan. But be careful in this. Take loan as per your requirement. Remember, you have a good credit score if you repay the loan on time, which makes it easier to take a loan again later. But by not making the payment on time, the credit score ie CIBIL deteriorates, due to which there is a problem in getting the loan later.
