Education Loan: Be it admission in medical or engineering institutes or dream of studying abroad, many times students have to stay away from their favorite career due to financial problems. Due to high fees of the institute, many students are not able to fulfill their dreams. In such a situation, education loan proves to be very beneficial for them. This loan not only helps in pursuing courses like medical, engineering, management but also helps in realizing the dream of studying abroad.
If you are thinking of taking an education loan, then you must know these important things. Let us know which documents are required for educational loan and how to apply for it.
What is education loan?
Education loan is financial assistance given by banks and other financial institutions to students to cover the cost of their education. These loans cover tuition fees, boarding fees, travel and all other expenses that the student may incur while studying. Students can repay it by doing a job after completing the course.
How many types of education loans are there?
There are many types of education loans, which are helpful in meeting the different needs of students. If you have attended college after high school and need a loan. In such a situation, you can take a graduation loan. Additionally, if you wish to pursue further studies after graduation, the option of post graduation loan is available. Whereas if you want to get education for any professional course or certificate, then Professional Unnati Loan can be taken. This loan helps in enhancing your skills. Additionally, many times parents also take education loans to financially support their children’s education.
Benefits of education loan
1. Higher Loan Amount: Loan up to ₹1 crore can be taken for further education.
2. Flexible Repayment Limit: A maximum repayment tenure of up to 15 years is available.
3. Global Coverage: Student loans are provided not only in India but also abroad.
4. Visa Prepayment: Some lenders release a certain amount of money before getting a visa for overseas studies.
5. Simple Process: Facility of collecting documents from home is also available.
6. Special Benefits: Discounts for female students and children of bank employees get priority pricing.
7. Moratorium Period: No repayments are required for one year after the completion of your course.
8. Tax Benefit: Tax exemption can be availed on interest payment for education loan for eight years.
Eligibility for taking education loan
Education loan is available for all courses that are government recognized, such as undergraduate, postgraduate, diploma, technical, professional and career courses. Furthermore, the student applying must have passed from government recognized universities or foreign institutions. Talking about its educational qualification, for undergraduate course it is necessary to pass 12th class and for postgraduate course, the applicant should have a graduate degree.
How to apply for education loan
Education loan can be applied for both online and offline.
online application
step 1: First of all open the website of the bank of your choice.
Step 2: Find the Education Loan section from the website and select it.
Step 3: Fill all the necessary information in the application form
Step 4: Submit all the required documents like ID proof, address proof and educational documents.
Step 5: After this the bank will verify your application. After everything is verified, the bank will deposit the loan amount in your account.
offline application
step 1: For education loan, first go to the nearest bank branch.
Step 2: Take the application form for education loan from the bank.
Step 3: Fill the required personal information in the application form.
Step 4: Submit the application form along with all the required documents so that verification can be done.
Step 5: The bank will verify your application and if satisfied, the loan amount will be credited to your account.
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