There is no denying the fact that the youth of India is immensely flooded with talent. Children are born with dreams here. However, some families fail to achieve their goals due to the biggest hurdle of increasing cost of higher education. Often they have to give up on their dreams and live with regret as they can’t afford higher education from good colleges and institutions. For such students, the banks come up with an incredibly fantastic opportunity called the Education Loan. Students who can’t afford higher studies due to inflation in the education sector can avail this Loan. They can apply for this Loan, and once they get it, they can begin studying and can fulfill their goals.
The students must have completed their higher secondary education to apply for the same. Different banks have grand schemes for Education Loan. Such loans make students responsible and self-dependent as they value the cost and know it is helping them settle well in life. The best part of the Education Loan is that it incurs every cost included during the particular course of study. It provides tuition fee, travel expenses, hostel accommodation, exam fee, etc.
Benefits of Education Loan
1. The interest paid during the education is taxable under Section 80E of income tax. Therefore, it turns out to be very economical as there is a rebate. Also, the interest rate of this Loan is quite low. In some banks, female candidates can avail special schemes which include a very low-interest rate.
2. It is not necessarily required to pay back the Loan as soon as the education gets completed. The students get enough time to pay back the Loan. Some banks give the time of around six months for the repayment of the Loan after the studies get completed.
3. There is no burden as such for the parents to begin the education of their children. As soon as the children complete their school studies, one can go ahead and apply for the Loan and hence, start higher education in the most reputed and good colleges.
4. To apply for the Loan, one needs to meet specific eligibility criteria. A person should be a citizen of India and must have completed the school. There are some documents including Identity proof, residential proof, age proof, and the education documents which a person need to submit to apply for the Loan. One needs to contact the bank for complete information.
Things to Notice and take care of while applying for a Loan:
The interest rate and duration: When it comes to Education Loan, many different schemes and offers are available for students where the burden of paying the loan amount can be eased. Before selecting an Education Loan, check for the interest they are charging and the amount of rebate that is being provided to a student. Also, check multiple educations Loan and their offer for the amount of time the Loan is being provided for.
Special Offers for Students: Since Education Loan is meant for students, there are many different offers available for them. Some companies provide lower interest just for Education Loan; some provide scholarships and an extra amount for students. Some companies have also offered fee waiver and other different types of the exemption on Education Loan.
Subsidized Home Loans: The Government gives education the highest priority, and due to this, many Education loan schemes offer some great features for students. Supported Educational Loan is given tax relaxation and relaxation in interest rates. Especially for these, flexible pay term is also available where the loans can be quickly paid with lower installments.
The Government has been emphasizing a lot on the education for the youth, which has enabled a lot of educational policies helping students to study abroad or in higher educational institutes within the country. The primary purpose of this is to increase the professional and academic education among individuals. Many different companies are offering Educational Loan under this to promote education courses well. Many companies and banks have also brought out deals and provide in association with educational institutes.
In this, if the fees of the educational institute are high, them one can take an educational loan from the bank that is working with the educational institutions. These banks will provide the mortgage at the lowest interest rate possible with other facilities to the student, such as waivers and scholarships. Since the bank or financial institutions are working with each other to provide the educational loans, the requirements for the Loan is eased out, and the process of approval is much faster than average.
In recent years, many big industrial organizations have also been more inclined to provide academic and educational courses to youth, which can directly help them to learn the practices used in the industry with prior experience as an intern. These industries have brought out their management degree courses such as BBA, MBA and have offered a lot of attractive deals for the students in association with Educational Loan providing institutions. These institutions provided education loans for professional courses and also delivered extra facilities as promised by the technical classes. Educational loans have made a mark in both academic courses and technical courses. Since professional courses are in high demand, we can see a lot of youngsters opting for Education Loan.
Another reason is studying abroad. For any educational course that is being provided elsewhere, once takes an Educational loan for. Educational credits for studying abroad are provided especially at attractive interest rates, to provide the flexibility in paying back. Banks often crack a deal with many foreign educational institutions to offer educational loans at a lower interest rate for the interested individual. The Government has also been supporting the individuals in applying for educational institutes outside India, by providing them with subsidized rates and waiver of any Loan or government fee. The future of Education loan in the market seems to be very promising and will see consistent growth in the future.