What is an Education loan?
A Student Loan or Education Loan is designed to help students pursuing Higher Education who are finding it difficult to finance their studies; which includes tuition fees, books, and living expenses. The interest rate will be substantially lower as against the other types of loans and the repayment schedule is deferred while the student is still in education.
As pursuing any professional course has become highly expensive in today's scenario, education loans help students tide over the expenses involved while chasing their dreams. Many public and private banks in India offer education loans. Most of the students end up getting high-paying jobs at the end of their course and are likely to be in a position to repay the loan.
Who can apply for an Education loan in India?
Any student who meets the following criterion is eligible to apply for an Education loan in India.
- The applicant should be an Indian National
- The applicant must have secured admission to a professional/technical course through Entrance Test/Selection process
- Secured admission to foreign university/Institution
Salient of the scheme include
- Loans of up to Rs. 7 lakhs for studies in India and Rs. 15 lakh for studies abroad
- Loans of up to Rs. 4 lakhs can be provided without any collateral and interest rates would not exceed Prime Lending Rates (PLR)
- Loans are to be paid over a period of 5-7 years
- Repayment of an educational loan enjoys tax benefits under section 80E of Income Tax act
A large number of banks have educational loan schemes as per guidelines from RBI. The links to the respective website of individual banks offering education are provided below.
Please note that rules, regulations, conditions, interest rates etc. are revised by banks from time to time. It is strongly advised that, the terms and conditions of educational loan scheme be thoroughly examined at the time of application. Please feel free to call our toll free number on weekdays between 9am to 6pm and we will be happy to help you.
