Over the years, education has become quite expensive. There has been a steep rise in the tuition fees, study materials, and other factors associated with quality education. There has been an 8 to 10 fold increase in the higher education due to inflation costs. Professional courses, like aviation, engineering, doctorate, management studies might costs you anywhere between 5 to 6 lakh a year. And in case your child is talented enough to crack the GMAT or GRE and score high in exams then he or she will definitely aspire for foreign studies abroad. For this parents either try to borrow money from traditional finances, keep things mortgaged or ask from family or friends. At times, you still have a wide gap between the financial arrangements and the education expenses requirements. Relax! Understanding the rising financial concern for children quality education, various banks and private finance companies have introduced education loans that come at competitively low interest rates, flexible repayment strategies and a fair amount of tenure to clear the debt.
Education loan India is one of the best ways to fund your higher studies and are a great investment in the near future. Most banks offer attractive education loans. You can get a study loan for a variety of course, be it graduate or undergraduate, professional or vocational.
The article will guide few things in keep in mind while applying for study loan India:
• To avail education loan India you will have to apply for a full-time course. Most banks don’t provide loans for part-time or distance education/correspondence courses. For these, you will need to consult your private finance companies or banks.
• You can pursue higher studies in India or abroad
•You should also know that these loans are eligible for tax benefits. So, when it comes to repayment, make sure make optimum use of tax angle and divert the savings for monthly installment payments.
These loans are a kind of credit advanced to professionals and students being designed to help them pay their college tuition, books, laptops, hostel fees and other living expenses. It differs from other types of loans and the interest rate is often substantially lower such as 12.75% and the processing fee is mere 1-2% of the loan amount being calculated on a case-to-case basis.
The repayment of education loan India is generally in the form of monthly installment. The student should compare their EMI with the likely salary they could earn. They can determine their installment payment with different combinations of interest rates and tenure by using the education loan EMI calculator online. According to experts, it’s desirable that your monthly EMI should not exceed more than 50 percent of one’s likely salary.
The disbursement of the loan amount is done directly to the institute or college to which the student has applied for admission. In the case of mess and hostel charges, the relevant amounts are given to the concerned authorities.
While applying for education loan India the private finance companies or banks will verify the tenure and the cost of the entire course, as applicable at that point of time. Once you take the admission, every year the applicant is required to submit a form available from the bank or private finance firm that gives the details of the money required, and then the next installment is directly disbursed to the college/institute.
In case the air fare is covered the amount will be given directly to the airlines. Some banks or private finance companies do give the student a certain amount on the monthly or quarterly basis for purchasing books, laptops, and other related study materials.