Education Loan: Acquire the Skills You Always Dream

Education of the highest quality has become one of the costliest but essential things we can acquire in this day and age. Although education can be expensive today but we cannot afford to neglect it for our children or ourselves. According to studies the cost of schooling is increasing by 15% every year. If we look at it the same manner that the schooling course cost approximately Rs. 2 lakhs at present would cost about 25 lakhs. 25 lakhs in 15 years later. Therefore, when we save or invest to cover the cost of education for our children, we must be prepared for the expenses that will be incurred in the next 15 years. Due to this rapid increase in the field of education often to visit here, our savings are not enough to pay for the educational expenses.

For the benefit of many individuals with a low income, getting the professional qualification from a recognized school is within possibility of a person with the financing tool known as -Education Loan. The loan is designed to help parents and students pay the costs of getting a higher educational degree. Learn more about what an education loan is and how it operates.

What is an Education Loan?

A loan for education is an unsecure loan, which can be used to study professional courses. The majority of Indian banks provide loans for education. In general, these loans can be used to pursue professional programs such as engineering, medicine and management. A person can take advantage of the loan to study in the United States or even abroad.

Benefits of Education Loan

The loan for education comes with numerous advantages. These are some of the benefits you will get by taking of an educational loan your child or yourself.

  1. Make Education Affordable

A loan for education helps parents and students to keep with the high price of an education of high quality. The cost of self-financing professional education is out of the means of many of us. An education loan is the light of hope that allows the degree to be accessible to us.

  • Tax Benefit

An education loan attracts tax benefits. In accordance with section 80E, the amount of interest paid for a education loan is tax-free. You can claim tax benefits for up to eight years old.

  • Larger Coverage

An education loan doesn’t just pay for the tuition It will also pay for expenses such as the hotel fees, library fees exam fees, books and lab costs, among others. A loan for education is a complete way to finance your professional education.

  • Protects Savings

A student loan can protect the savings of parents or students. It is possible to meet other requirements with savings. An education loan is sufficient to cover the education costs.

  • Moratorium Period

A loan for education grants an opportunity for a moratorium or vacation period during which the borrower doesn’t have to make EMI for the loan. The period begins after end of the program. The duration of the moratorium is 6 months to one year. This allows the borrower time to locate a job and be financially stable enough before they can begin paying EMIs.

  • Credit History

A student loan can be helpful in building credit history for the borrower and co-borrower (if relevant). A good credit score as a student can help you obtain more prominent and more lucrative loans in the future.

The Eligibility Criteria of Education Loan

To be eligible for an aid to education, an person applying must meet the requirementsto qualify.

A loan for education can be utilized by both citizens as well as NRI. For NRIs they must have a valid passport. is required.

  • The minimum age of an applicant or co-applicant has to be 18 years old.
  • The applicant must be able to score certain marks during SSC, HSC, and graduation
  • Some lenders may require an applicant to pass the entrance exam at the national level.
  • The applicant and the applicant’s co-applicant (parents) need to have a steady or regular source of earnings.
  • A confirmed admission letter from an accredited college or education institution is essential.

Documents Required for an Education Loan

  • Two passport size photograph
  • Age evidence
  • Identity document
  • Residence evidence
  • Statement of bank account for the past six months
  • Documents that prove any scholarships applicants are eligible for.
  • Letter of admission confirmation from the institution of study.
  • The cost of the course
  • Test sheet with marks
  • Copy of the Foreign Exchange Permit (if admission was taken)

The Last Lines

A loan for education helps to ease the gap of having to pay for high cost of education. The typical time for a loan to finance education is about a week or so to be approved. The loan is paid out occurs in small installments, directly to the institution of study.