Education loans are the most cost-effective approach to pursuing higher education without compromising on finances. You can get a loan for schooling in India or overseas. Unemployed students must have a guardian or parents as guarantors.
Education loans are available from leading Indian banks to help students attain their academic goals. The interest rate on a student loan with a payback period of up to 15 years starts at 6.60 percent each year. Education loans can be used for both in-country and out-of-country higher education.
Which courses are eligible for an education loan will be determined by the lender. For courses beginning in Nursery, an education loan might be secured. You can get a loan for higher education for full-time or part-time courses, as well as loans for working professionals.
You may check the EMI amount you'll have to pay each month using an Education Loan EMI Calculator. You can go through this process as many times as you want to compare the interest rates given by several banks to see which one best fits your budget. As a result, an EMI calculator can help you choose the proper loan.
|
Banks |
Rate of Interest |
|
HDFC Bank |
10.50%-11.50% (reducing) |
|
Eduwanse |
9%-11% |
|
Finance Peer |
10.5% - 11.25% (fixed) |
|
IDFC Bank |
9%-13% (reducing) |
You can choose between a fixed interest rate package and a variable interest rate package, depending on the bank or financial institution. The Repo Rate is the basis for most variable rates, with a spread implemented before the final effective interest rate is offered to you (EIR).
Courses:
Institutes:
Collateral:
Acceptable collateral: Residential or commercial property or plot, fixed deposits, insurance
Loan amount: Up to Rs.1 crore
You can use the Education Loan EMI Calculator to figure out how much your monthly payments will be and how much the overall cost of the loan will be if you apply for an education loan. To get an estimate of your equivalent monthly payment, enter a few loan-related variables such as the loan amount, duration, interest rate, and processing charges to get an estimate of your equivalent monthly installment (EMI). The total interest payable, as well as a detailed amortization table that breaks down your EMIs into principal and interest amounts on a monthly and annual basis, are important pieces of data.
List of Courses that are Covered under an Education loan:
Abroad
List of Expenses Covered in Education Loan
Here’s what the loan amount will cover:
The interest you pay on your education loan can be deducted under Section 80E of the Income Tax Act of 1961. This benefit is only offered to individual borrowers and is only available for higher education purposes. All areas of study, both nationally and internationally, are eligible for the deduction. There are both vocational and academic courses available.
The tax deduction only applies to the interest portion of the EMI, not the principle. You can, however, claim this advantage an unlimited number of times. To be eligible for this benefit, you'll need a certificate from your bank or financial institution that separates the principle and interest components of your EMIs.
This benefit is available for 8 years, or until the interest component of your loan is paid off, whichever comes first.
Following are the ways of applying for an Education Loan:
Online mode:
Step 1: This is the simplest and most practical method of applying. There are two methods for submitting an online application. The first is a simple application form that you will complete online, attach any required documents, and submit.
Step 2: Next, you apply by submitting all of the needed information, and the lender will contact you to negotiate the loan conditions before moving forward with the application.
Offline mode:
Step 1: Go to a Branch: You can apply for a loan by going to your nearest branch with the required documents, discussing the loan terms with a representative, filling out the application, and submitting it in person.
Step 2: Call the Lender: You have the option of calling the lender directly or requesting a callback by expressing your interest. After that, you can talk about the loan terms and apply.
Virtual Assistant
Banks and other financial institutions are moving to digital methods to better serve their customers. One method is to use a Virtual Assistant to clarify your doubts and request assistance with the application procedure.
