Posted Mar 2024

Education Loan

To live a full and prosperous life, one must be well educated. But education is becoming increasingly expensive. Even if a student is brilliant and capable, attending reputable institutions is already prohibitively expensive. 
As a result, not all parents have the means to send their children there...
Parents who want to provide their children with the best education possible make long-term investments.

Why Are Education Loans Becoming Necessary for Higher Education? 
Education loans are now required because tuition fees at engineering and medical universities have risen to the point where paying the full fee is no longer feasible. 
That is why educational loans have become necessary. In such a case, a student can simply apply for an education loan in India and enroll in a reputable college. 
Moving forward, let's discuss. 

Types of Education Loans in India 
Based on the location, there are two types of education loan processes: 
• Individuals can apply for an education loan to further their education in India. Only applicants who are accepted into Indian educational institutions and meet all of the lender's other requirements will have their loan applications approved. 
• Education loans help students pursue their dream of studying abroad. Students who want to study abroad can apply for a loan that will cover their airfare, lodging, and tuition as long as they meet the eligibility requirements. 
Moving on, let's discuss

The Features and Benefits of Educational Loans in India!
Here are a few:
• NRI students can borrow up to Rs 30 lakhs, while others have no loan limit.

 • Education loans in India are versatile and can be used for a variety of purposes. It covers all of the expenses associated with living as a student, including food, college fees, study materials, laptops, library fees, and much more.

• Taking on loan repayment responsibilities allows students to build a strong credit history. Making EMI payments on time helps the student maintain consistency and discipline while also building a positive CIBIL report. 

• Education loans typically have lower interest rates than personal loans. 
• Section 80E of the Income Tax Act of India, 1961 allows for tax benefits on education loan interest payments.

Which Courses are Eligible? 
Students can enroll in almost any course they want, as long as it is offered by an approved institution or has a good reputation. The courses that you can frequently apply for with a loan include: 

#1. Courses Eligible for Education Loans in India 

• PhD courses 

• Graduation/PG/Diploma courses from reputable institutions and universities

 • Technical, professional, and management courses 

#2. Courses Eligible for Education Loan Abroad 

• PhD courses 

• Graduation/PG degrees from reputable institutions/universities

 • Certified degree courses by CIMA, London, and CPA, USA, among others. 
Now that you've seen the features, benefits, and types of education loans in India, let's move on and discuss, 

How Can I Apply For An Education Loan Online In India?
There are several ways to apply for an education loan online in India.
• Online application: Attach all required documents and complete the form online for submission. Some banks may offer virtual assistants to help with the application process.
• To apply offline, bring all required paperwork and a completed application to your nearest branch office.
After you submit your loan application, the bank will begin the process by reviewing your paperwork, assessing the course of study for which you want the loan, and determining the type of collateral you can provide. 

What Documents Are Required for an Education Loan Abroad and in India? 
When applying for an education loan, the following documents are required. 
• Educational certificates and KYC documents. 
• Admission letter 

• Fee structure

 • Income proof and KYC documents for co-applicant. 
In addition to the aforementioned, additional documents may be required in some cases.