Every parent spends their deposits on their child to get good education. But in the meantime, education is getting expensive day by day. In such a situation, the savings of the parents for higher education are reduced. But now there is no need to panic.
Every parent spends their deposits on their child to get good education. But in the meantime, education is getting expensive day by day. In such a situation, the savings of parents for higher education fall short. But now there is no need to panic, you can make your children’s dreams come true by taking ‘Education Loan’.
Actually, you can easily take an education loan for your children’s higher education. In the last few years, the government has simplified its process to increase the scope of education loan. So that the education of the children does not stop due to lack of money. Know the complete process of education loan:-
1. Who will get education loan
Education loan is given in the name of the student. But the name of the parent or guardian is also included in the applicant. The applicant must be an Indian citizen. Students going abroad for studies or higher education in India can take a loan.
2. How to get Education Loan
The loan amount is capped based on the type of course, educational institution and eligibility of the borrower. Loan up to Rs 50 lakh is available for domestic courses and up to Rs 1 crore for studies abroad.
3. How much loan will be available
There is no need to deposit any kind of security on education loan up to Rs 4 lakh for studies in the country. That is, education loan up to Rs 4 lakh is available without guarantee. If you take an education loan between Rs 4 to 6.5 lakh, then a third person will have to make a guarantor for it. If you are taking an education loan of more than Rs 6.5 lakh, you may have to mortgage a property.
4. For which course loan is available
By taking loan, you can do full time, part time or vocational courses. Apart from this, loan can be taken for the studies of graduation or post graduation in engineering, management, medical, hotel management and architecture. Education loan is easily available for all types of professional courses.
5. Interest Rate on Education Loan
Education loan is much cheaper as compared to personal loan. However, depending on the course and educational institutions, the bank determines the interest rate. Usually it is between 7-12 percent. Education loan is available at very low interest for admission in institutes like IITs and IIMs.
6. Documents for Loan
Admission has been decided in a recognized college or university in India or abroad for higher education. The applicant must have passed the 12th examination. During loan approval, the bank may ask the applicant for the institute’s admission letter, fee structure, parent’s salary slip and a copy of the Income Tax Return (ITR).
7. Repayment of Education Loan
Repayment usually starts 6 months after the completion of the course. But in case of non-availability of job, the bank gives time up to one year for repayment. Education loan has to be repaid in five to seven years, sometimes banks can extend it.
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