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What is Education Loan?
What is Education Loan?
Quality education is paramount to anyone, and students will strive to get it. But, the price of education has been rising recently, and obtaining loans for education seems to be the most effective option.
Education loans are a kind of loan that students seek to satisfy the financial requirements necessary to complete their studies. Numerous banks and NBFCs in India offer loans for education at affordable rates to educate the next generation of leaders and innovators.
Types of Education Loans
Based on Location
- Students looking to study in India are eligible to apply for this type of loan. The loan will be granted only if the applicant has been accepted into an Indian education institution and meets the lender’s other conditions.
- These loans allow students to realize their goal of pursuing the path they want to take at an international institution. The loan pays for accommodation, airfare, and tuition fees for students who plan to study abroad but only if they meet the criteria for eligibility.
- This kind of loan is made available to students to provide aid in financial assistance so they can finish their undergraduate studies. An undergraduate degree can be a 3 – to four-year course covering various study areas. A degree earned at the undergraduate level helps students to secure a job and begin making.
- Many students would like to pursue their studies with an advanced postgraduate program, typically for a two-year course in India. A higher degree is required to gain a deeper understanding of the field of study.
- Many professionals who have worked for several years in corporate positions decide to take a break from their careers and enrol in professional courses and further training to boost their job prospects. They will work hard to gain admission into well-known technical and business institutions to sharpen their abilities and achieve greater heights in their careers.
- Loan Against Property, Deposits, and Securities
- You can pledge immovable assets, including residential land, agricultural property, flat, home and other fixed deposit certificates, recurring deposits and bonds, gold deposits, equity shares, and debentures to receive the needed funds to further your higher education.
- A letter of guarantee by a bank employee or a home bank could aid the student in obtaining the education loans.
Features and Benefits
- The amount that can be borrowed can go all the way to Rs.1 lakh for international students and as high as Rs.50 lakh for students from the country.
- 100% financing is available under certain conditions.
- The most favourable rates for foreign exchange might be available for international transfers.
- The loan repayment period can extend for up to 12 years following six months of completing the course.
- Parents must be joint borrowers on loans for education.
List of expenses covered under the Education Loan
- Fees due to educational institutions.
- Examination/library/laboratory fee.
- Money for travel expenses/passage to study in other countries.
- The premium for insurance for students in the event of a claim.
- Purchase books/equipment/instruments/uniforms (total expense should not exceed 20% of full loan).
- The purchase of a computer should be at a reasonable cost should you be required to finish the course (total expenditure cannot surpass 20% of the whole loan).
- Additional expenses are needed to complete the course, like projects, study tours, thesis, etc. (total costs cannot surpass 20% of the whole loan).
- When computing loan requirement fees, scholarships, fee waivers or fee waivers. Suppose any are available to the student who wants to borrow.
Education Loan Eligibility
- Indian Nationals only.
- University admission or invitation to a recognized college or university for a degree or diploma course.
- Education: Must have completed the 10+2 (12th standard) to be eligible for an undergraduate course and an advanced degree for postgraduate study.
- Approved courses leading to graduate/postgraduate degrees and PG diplomas were conducted by recognized colleges/universities by UGC/Govt./AICTE/AIBMS/CMR.
- Courses like ICWA, CA, CFA etc.
- Courses are offered by IIMs and IITs IISc, XLRI, NIFT and NID.
- Regular degree/diploma-granting courses including a pilot, aeronautical shipping, pilot training
- Degree/diploma in nursing or any other discipline approved by the Director General of Civil Aviation/Shipping/Indian Nursing Council or any other regulatory body, as the case may be if the course is pursued in India.