Education-Loan

Education Loan: Interest Rates, Types, Process, Features, and Eligibility

Pursuing quality education is a priority for many students, but rising costs can be a challenge. Education loans provide financial assistance to students, enabling them to complete their chosen courses without financial strain. Banks and NBFCs in India offer competitive education loan options to support aspiring professionals.

Types of Education Loans

Based on Location

• Domestic Education Loan: For students enrolling in Indian educational institutions.
• Overseas Education Loan: Covers tuition fees, airfare, and accommodation for students studying abroad.

Based on Course

• Undergraduate Loan: Supports students pursuing bachelor's degrees.
• Postgraduate Loan: Financial aid for those continuing with master's or higher studies.
• Career Development Loan: Helps professionals enhance skills through specialized courses.

Based on Collateral

• Loan Against Property & Securities: Funds are secured against assets like land, fixed deposits, or bonds.
• Third-Party Guarantee: A guarantor helps in loan approval.

Features & Benefits

• Loan amounts up to Rs. 1 crore (international) and Rs. 50 lakh (domestic).
• 100% financing available under specific conditions.
• Covers additional costs like laptops and travel.
• Preferential forex rates for international students.
• Parents act as joint borrowers.
• Repayment tenure up to 15 years.
• Moratorium period of up to 1 year after course completion.
• Tax benefits on loan interest for up to 8 years.

Expenses Covered

• Tuition and examination fees.
• Library and laboratory expenses.
• Travel and insurance costs.
• Caution deposits and study materials.
• Cost of books, equipment, and computers.
• Study tours, projects, and thesis-related expenses.

Eligible Courses

• UG & PG programs under UGC, AICTE, IMC, and other recognized institutions.
• Specialized courses from IIM, IIT, IISc, XLRI, NIFT, ICWA, CA, CFA, etc.
• Professional courses like pilot training, aeronautics, and shipping.
• Job-oriented courses such as MBA, MCA, MS, CIMA (London), CPA (USA).
• Skill development courses.

Eligibility Criteria

• Applicants must be enrolled in approved undergraduate, postgraduate, PhD, diploma, or job-oriented courses.
• Admissions must be in recognized institutions, both in India and abroad.
• Minimum education qualification: 10+2 for UG courses and a degree for PG courses.

Required Documents

• KYC documents.
• Academic records (10th, 12th, graduation, entrance exam scores).
• Admission letter and fee structure.
• Co-applicant KYC and income proof (if applicable).

Tax Benefits

• Interest paid on an education loan qualifies for tax deduction under Section 80E.
• No limit on the claim amount for interest repayment.
• Tax benefits available for up to 8 years from the start of loan repayment.

Education Loan EMI Calculator

An EMI calculator helps estimate the monthly loan repayment based on principal amount, tenure, and interest rate.

Application Process

Online Application:

1. Visit the preferred bank’s website.
2. Select an education loan scheme.
3. Fill out and submit the application form with documents.
4. The bank verifies details and assesses eligibility.
5. Upon approval, the loan amount is disbursed.

Offline Application:

• Visit a bank branch.
• Submit a filled application form along with documents.
• The bank verifies and processes the application.

Loan Repayment

• A grace period of 6 months to 1 year is given post-course completion to start repayments.
• EMI amount depends on monthly income and loan tenure.
• Maximum repayment tenure is generally up to 8 years.

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Education Loans Available for Students in India

Below is a list of banks offering education loans for students in India. Click on the respective links to explore loan details and eligibility criteria.

For more details, visit the official websites of the respective banks.

For Support Call Us : 973 999 7337