What is educational loan in India?
An education loan is a loan that students apply to meet the financial requirements to complete their course. Many banks and NBFCs in India offer education loans at competitive rates to help educate the upcoming innovators and leaders.
What is education loan in India Wikipedia?
A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses.
What is an educational loan?
Education loans are basically a form of monetary assistance availed by students to meet the expenses associated with their studies. Education loans can be taken by means of funding, scholarships, financing and rewards, and are granted in cash, which has to be repaid to the lender along with a rate of interest.
Is there any education loan in India?
The scheme envisages loans up to Rs. 7.5 lakh for studies in India and up to Rs. 15 lakh for studies abroad. The loans are to be repaid over a period of 5 to 7 years with provision of grace period of one year after completion of studies.
What are the rules for education loan?
Eligibility Criteria for Student Loans in India The applicant should be of age 18-35 years. The applicant should have a good academic record. The applicant should have secured admission to a recognized University/institution. The courses eligible for education loan are generally provided by the banks.
Is it good to take education loan?
Some students take an education loan for graduation and then avail of the top-up facility to complete their post-graduation. “Taking a top up on education loan is bad, because it will increase the liability further. It is better to finish the first education loan before taking the second one,” says C. S.
What is special about education loan?
Opting for an education loan reduces the strain on your family savings and eliminates the need to liquidate your investments in fixed deposits, mutual funds or bonds. Besides, the interest on an education loan is eligible for a tax rebate under Section 80 E of the Income Tax Act 1961.
What is included in education loan?
Your education loan will cover a number of things in addition to your tuition fees. These include hostel fees, exam fees, library fees, purchasing books, travel and other expenses for educational projects. Interest rates on educational loans depend on a number of factors.
Is education loan a good idea?
In either case, an education loan is a good idea and a commonly sought after resort. Pursuing higher studies usually involves high fees and an education loan comes in handy at this point. Banks provide education loans for graduation/PG, diploma or professional courses, at attractive interest rates.
What are the disadvantages of educational loan?
Disadvantage of Education loan:
- The banks ask for the mark sheet before disbursing the loan, so it is important to maintain a good academic record.
- The Education Loan has a floating Rate of Interest with a variable index which changes with time.
What documents need for education loan?
Documents required for Education Loan
- KYC documents.
- Bank Statement / Pass Book of last 6 months.
- Optional – Guarantor Form.
- Copy of admission letter of the Institute along with fees schedule.
- Mark sheets / passing certificates of S.S.C., H.S.C, Degree courses.
How to apply for an education loan in India?
Who Can Apply for Education Loans. Mentioned below is the general eligibility criteria for education loans in India: Must be a resident of India. Must have a secured admission into a recognized course in India or abroad. NRI applicants must have a valid Indian Passport. Applicant must provide collateral enforceable in India.
Is there a moratorium on education loans in India?
Yes, the Reserve Bank of India’s moratorium on retail loans, due to people undergoing financial challenges due to the Covid-19 pandemic, is applicable to education loans as well. The moratorium on Equated Monthly Instalments (EMIs) could be availed from March 2020 to August 2020.
What’s the interest rate on an education loan?
Education Loan. If you are searching for an education loan, the interest rates for such loans range from 8.45% to 15.2% pa. and come with flexible tenures up to 15 years.
How to apply for education loan in ICICI Bank?
Visit the nearest ICICI Bank branch, fill the form and get started with your loan approval process. To apply for Education Loans through VidyaLakshmi portal, please click here. Sorry, but the page you were trying to view does not exist.