Basics of Education Loan
Education is what helps an individual to rise higher in life, the word education itself has been derived from a Latin word “ed-u-care” which means “to raise”. Over years, right from The Mahatma’s and The Guru’s, what has remained common is the impartation of knowledge and skills to others. However unlike that era, education is no longer free.
Many students in India have brilliant brain and skills. But due to financial shortcomings, their skills remain behind curtail and they can’t study further. To help such students, concept of loan for education in India were brought.
Education loan is a loan provided to a student for higher studies by banks. A student who can’t afford fees and other expenses for study after 10+2 may get education loan on certain terms and conditions of the bank.
How to get an Education Loan?
Certain documentation is required to apply for an education loan in India :
- The first and the foremost requirement is that your course should be eligible for loan. Banks provide education loan for graduation course, post graduation course and professional course. The courses approved by UGC/ Government or AICTE are also eligible for education loan.
- Documents such as identity proof, course details, fee structure and academics mark sheets are some more documents needed.
- Fees payable to the college/school/hostel.
- Examination/library/laboratory fees.
- Purchase of books, equipment etc.
- Purchase of computer if necessary for studies.
- Caution deposit/ Refundable deposit(maximum 10% of tuition fee for entire course).
- Cost of two wheeler up to Rs. 50000.
- Any other expense which bank find necessary for studies.
One can avail tax benefits u/s 80E for interest paid by him for education loan from the year he starts paying interest and for next 7 immediately succeeding assessment year i.e. one can enjoy tax benefit for 8 years for interest paid on education loan for himself or spouse or children.
|Leading Education Loan Providers (Click to Apply)|
|HDFC Bank Education Loan||BOI Education Loan||ICICI Bank Education Loan||Other Banks|
|REMINDER SERVICES||EMI CALCULATOR|
EDUCATION LOAN INTEREST RATES
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