Whether it’s gaining admission to medical or engineering institutes or pursuing the dream of studying abroad, financial difficulties often force students to give up on their desired careers. High tuition fees prevent many from achieving their goals.
In such cases, an education loan becomes a great support. This loan not only aids in pursuing courses like medical, engineering, and management but also helps turn the dream of studying abroad into reality.
If you’re considering an education loan, it’s important to know a few key things.
Here’s what documents are needed and how you can apply for the loan.
What is Education Loan
An education loan is a financial assistance provided by banks and other institutions to help students pay for their education.
This loan covers expenses such as tuition fees, boarding fees, travel, and any other costs a student may incur while studying.
Students can repay the loan after they complete their course and secure a job.
How many types of education loans are there
There are several types of education loans designed to meet the different needs of students.
If you’ve enrolled in college after high school, you can apply for a graduation loan.
If you’re looking to pursue further studies after graduation, a post-graduation loan is available.
For those aiming to enhance their skills through a professional course or certificate, a professional advancement loan can be taken.
Additionally, parents sometimes take education loans to financially support their children’s education.
Benefits of Education Loans
High Loan Amount: You can avail a loan of up to ₹1 crore for further education.
Flexible Repayment Tenure: Repayment tenure can extend up to 15 years.
Global Coverage: Loans are available for studies in India and abroad.
Visa Pre-Payment: Some lenders provide a portion of the loan before your visa is granted for overseas studies.
Simple Process: You can have your documents collected from home for convenience.
Special Benefits: Female students and children of bank employees enjoy discounts and priority pricing.
Moratorium Period: No repayment is needed for one year after completing the course.
Tax Benefit: You can avail tax exemption on the interest paid on the loan for up to 8 years.
Eligibility for Education Loan
Education loans are available for all government-recognized courses, including undergraduate, postgraduate, diploma, technical, professional, and career programs.
The student must have completed their education at government-recognized universities or foreign institutions.
For undergraduate courses, the applicant must have passed the 12th grade, while for postgraduate courses, a graduate degree is required.
How to Apply for an Education Loan
You can apply for an education loan both online and offline.
Online Application
1. Visit the website of your chosen bank.
2. Navigate to the Education Loan section.
3. Fill in the necessary details in the application form.
4. Submit required documents like ID proof, address proof, and educational records.
5. The bank will verify your information, and once confirmed, the loan amount will be credited to your account.
Offline Application
1. Visit the nearest bank branch to apply for an education loan.
2. Request the education loan application form.
3. Complete the required personal information on the form.
4. Submit the application form along with necessary documents for verification.
5. Once the bank verifies your details, the loan amount will be transferred to your account.
