Education Loan In India.
The cost of education in India and abroad is rising each day.
It has become difficult for students to afford quality education because of the ever-increasing college and school fees.
The only way to cope with the rising cost is by applying for an Education Loan that has added benefits other than just paying the college fees.
Let’s get to know how.An education loan is a loan that students apply for, in order to fund their education in India or abroad.
Different banks and financial institutions offer Education Loans to aspirants at competitive rates, to help them make quality education affordable.
There are two key features of ICICI Bank Education Loans:
Furthermore, in the case of an Education Loan below Rs 4 lakh, no collateral is required.
For a loan above Rs 4 lakh to Rs 7.5 lakh, a third-party guarantor is required, while for loans above Rs 7.5 lakh, collateral becomes mandatory.
When it comes to a loan for studying abroad, insurance is mandatory.
How Education loan works? For those students who apply for an Education Loan, it is not necessary to pay the amount immediately;
the repayment tenure starts from months or year, after the completion of the course. And in some cases, it can be extended from 5 to 7 years.
The interest rate varies as per the banks. The loan amount is directly paid to the institution/university at the start of the semester by the bank.
Education Loans also include all other expenses, such as library fees, hostel fees, cost of books, laboratory fees etc., thus assuring that the student does not have to pay any expenses from their pocket.
While an Educational Loan is a good way to finance education in case of a shortage, one should always weigh their financial capabilities before applying for the loan.
Who can avail education loan?
Education loans in India are only limited to higher education, albeit scholastic education in India being equally expensive. Study loans are provided to students who’re at least pursuing a professional course approved by government bodies after completing their SSC (10th class or equivalent) and HSC (12th class or equivalent).
who can provide Education Loan.
Banking institutions in India which are allowed to provide education loan have to be approved by Indian Banking Association (IBA). These banking institutions are obligated to follow the CSIS (Central Sector Interest Subsidy Scheme) and other regulatory norms to provide the services which are in the best interest of student loan applicants. The two common types of institutions which are allowed to provide
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