All of us want to give quality education to our children. The facilities provided by schools, colleges and educational institutions are costly. Constant price hike in the cost of education is a big challenge for all. Here comes the option of Student Loan or Education Loan. The requirement of fund during admission, tuition fee, course fee, accommodation charges, library or any similar expenses can be easily covered through it. Our team of education loan experts have listed all the details on Student Loan or Education Loan. We are sure that it will resolve all your queries on it.
About Student Loan or Education Loan
Student Loan or Education Loan as the name is evident, is meant for the purpose of education. We avail this loan for payment of school or college fees, admission charges, higher education charges in India or Abroad and similar purposes. Almost all the banks in India offer Education loan. The demand of this loan has constantly been increasing among student community.
Why Education Loan is Better
- When we compare education loan with other category of loan like Personal Loan or Loan Against Property you will find it more economic.
- There are many types of cost associated with education charges like fees of tuition, purchase of laptop and books or equipment, course admission charges, accommodation charges, examination fee, library fee, visa or flight charges etc . These can only be covered under Education loan.
- Increasing cost of quality education will make your accumulated wealth lesser due to high inflation and price hike. You may not be sure bearing 100% cost of education so considering Education Loan will fulfill your dream.
Top 10 Benefits of Taking Education Loan
- Government provides subsidy under CSIS (Central Scheme to provide Interest Subsidy) on these loans
- The loan given under this category is lower in interest rate (average 14%-14.5%) compared to personal loan (average 16%-18%)
- Loan amount up to 10 lakh for the Study in India could be taken where for foreign it is up to 30 lakh
- Longer tenure of repayment (5 Years-15 Years) makes the EMI easy for repayment
- The EMI is payable when your children complete the course and start earning
- Best for graduation, post-graduation, degree course or vocational courses funding
- Female students gets lower rate of interest
- Usually, Loan below 4 Lakh does not require any security or guarantor
- Available for all who wants to study
- Easy online application and transparent loan process, approval and disbursement
Checklist to apply Education loan
- Check your loan amount requirement
- Compare the best interest rate and loan tenure with attractive repayment options
- letter of admission issued by school or college
- All related important documents like prospectors, fees beak-up etc
- Basic KYC documents-Address proof, Income proof, bank account etc
- Income proof and bank statement of parent/guardian & Guarantor
- In case of studying in foreign educational institute-entry permit, employment contract, Form-I 20, Passport and visa
- Documents required for security when loan amount is more than 4 Lakh
- Affidavit of no default of loan, any other education loan
- In case of employee- resignation letter, sanction letter
Interest Rate and EMI
Major lenders like State Bank of India (SBI), Punjab National Bank, they offer the interest rate of education loan starting from 11.5% to 13% . Maximum loan amount for study in India is 10 Lakh. Loan tenure is generally 5-7 years. The EMI is lower when rate of interest is lower and loan tenure is higher. Vice versa is also applicable.
Keeping all the above facts in mind, when in the near future you feel the need to take education loan either for your children or even for yourself, get expert advises from us at Loan Guru. If you like the information listed, do not forget to like and share it on your social media Facebook and twitter.