A wise man once quoted “An investment in education pays the best interest.”
So true! Education is imperative to thrive in today’s fiercely competitive world. But what if money becomes a stumbling block in your dreams? Let the Education Loans be your savior.
Education Loan is the money, a student or his parent borrows from a loan issuing authority for financing an educational course in India or abroad. It is granted for a multitude of academic, professional, vocational and technical courses.
Education Loan Coverage
The maximum sum that can be loaned out can be up to 10 lakh for education in India and up to 20 lakh for education abroad. The interest rate may vary from 5 to 15% depending on both the borrower and the lender.
How Education Loans Differ from Scholarships?
Unlike grants and scholarships that are available only for meritorious students, education loans can be availed by anyone willing to pursue a specific course of his/her choice.
Features & Benefits
There’s more to education loans than just financing your child’s education. Here are a few unique benefits that Education Loans offer:
- An education loan covers not just tuition fees but also examination fees, hostel fees, books, laptops and other resources, study tours, etcetera.
- You get to enjoy deductible tax benefit on the interest you pay on your loan (as per Section 80E of the Indian Income Tax Act).
- The repayment is not be made while pursuing the course or even immediately after the course is completed.
- The repayment begins after 1 year of course completion or 6 months from the commencement of a job, whichever is earlier.
- The repayment period is extendible up to 8 years.
Checklist: Before you go for education loan
- The granting of education loan isn’t much time consuming it should be applied for only after the admission is confirmed.
- It gets easier to get the loan approved if the student is insured. The reason being, the lender can recover the outstanding money from his/her policy.
- Before an educational loan is granted, the lender verifies parent’s income, student’s academic background of the student, and the reputation of the institution the student opts for.
Ensure a brighter future for your child. Compare the best Education Plans at Policy Bazaar.