With the cost of higher education abroad rising every year, parents have no option but to apply for education loan
to enroll their children in a foreign university. There are several
misconceptions about student loan offered by banks and financial
institutions. Majority of the fears associated with the education loans
are far from truth. Getting education loan in India is not complicated
as thought to be. The eligibility, payment terms, interest rate, tax
rebate and terms of loans are some of the important loan elements that
you should focus upon while applying for a student loan. Let’s take a look at some of these important elements of the student loan and know about the procedure to get an education loan in India.
• Eligibility: Only Indian resident aged between 16-35 can apply for a student loan. The applicant must have secured admission to the professional or technical course before applying for the loan.
• Repayment terms: the repayment of education loan in India generally starts six months after taking up a job or one year after completing the professional course whichever is earlier.
• Tax rebate: The Government of India offers tax rebate on the interest you pay on the education loan. The tax rebate is based on Section 80-E of the Income Tax Act 1961.
• Term of loan: the term of the loan is generally 7 years which also includes the period when the borrower is not required to make any repayment.
• Interest rate: the interest rate of education loan is generally in the range of 15%-18%
The above given information is only general. Every bank and financial institution has their own terms and conditions, interest rates and eligibility criteria for the student loan. The maximum loan amount you can get differs with the financial institution offering it. For education loans above 7.5 lacs, you need to present collateral.
To get an education loan, you need to visit the financial institution or bank which offers student loan. You can talk to education loan consultant hired by the financial institution who can give you clear idea about the eligibility criteria and the procedure to apply for the loan. You need to carry your educational documents including the application of the foreign university in which you want to enroll. If you are applying for an education loan above 7.5 lacs, your guardian or the parent has to sign as co-applicant for the education loan. The role of the co-applicant in the loan process is that of the primary debtor. The financial institution may also ask for additional security as collateral if you are seeking 100% education loan. The education loan will be only granted after you present University’s fee demand letter.
Some banks and financial institutions have their list of approved educational institutions and professional courses. The loan procedure is simple and more quick if you are seeking admission in their approved list of educational institutions. So, if you have secured admission in foreign university and looking for an education loan in India then head towards any bank or financial institution that offers education loan for higher studies.
Source: http://benoyj.hubpages.com/hub/How-to-get-Education-loan-in-India
• Eligibility: Only Indian resident aged between 16-35 can apply for a student loan. The applicant must have secured admission to the professional or technical course before applying for the loan.
• Repayment terms: the repayment of education loan in India generally starts six months after taking up a job or one year after completing the professional course whichever is earlier.
• Tax rebate: The Government of India offers tax rebate on the interest you pay on the education loan. The tax rebate is based on Section 80-E of the Income Tax Act 1961.
• Term of loan: the term of the loan is generally 7 years which also includes the period when the borrower is not required to make any repayment.
• Interest rate: the interest rate of education loan is generally in the range of 15%-18%
The above given information is only general. Every bank and financial institution has their own terms and conditions, interest rates and eligibility criteria for the student loan. The maximum loan amount you can get differs with the financial institution offering it. For education loans above 7.5 lacs, you need to present collateral.
To get an education loan, you need to visit the financial institution or bank which offers student loan. You can talk to education loan consultant hired by the financial institution who can give you clear idea about the eligibility criteria and the procedure to apply for the loan. You need to carry your educational documents including the application of the foreign university in which you want to enroll. If you are applying for an education loan above 7.5 lacs, your guardian or the parent has to sign as co-applicant for the education loan. The role of the co-applicant in the loan process is that of the primary debtor. The financial institution may also ask for additional security as collateral if you are seeking 100% education loan. The education loan will be only granted after you present University’s fee demand letter.
Some banks and financial institutions have their list of approved educational institutions and professional courses. The loan procedure is simple and more quick if you are seeking admission in their approved list of educational institutions. So, if you have secured admission in foreign university and looking for an education loan in India then head towards any bank or financial institution that offers education loan for higher studies.
Source: http://benoyj.hubpages.com/hub/How-to-get-Education-loan-in-India
