Education Loan

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Education Loan

Education Loan is a greatest method to pursue higher education without disrupting your finances is an education loan. For courses in India or abroad, you can obtain a student loan. Parents or guardians must serve as guarantors for students who are unemployed. guardians must serve as guarantors for students who are unemployed.

Education loan is Funding for up to 1 crore for studying students in India or Abroad
Duration for Loan payback is up to 15 years
Enjoy a Moratorium period of up to a year following the conclusion of the course, you are not required to make loan instalments during this time
Enjoy tax advantage on the interest paid for up to 8 years

  • Based on Source of Funding

    • a. Government or Public Sector Loans

    • Provided by government agencies or public banks.
    • Usually have lower interest rates and longer repayment periods.
    • Often include moratorium periods (no repayment until after graduation).

    Examples:

    • In India: SBI Student Loan, Vidya Lakshmi Portal, Central Sector Interest Subsidy Scheme.
    • In the U.S.: Federal Direct Subsidized and Unsubsidized Loans.

    b. Private or Bank Loans

    • Offered by private banks or financial institutions.
    • Interest rates are usually higher and depend on the borrower’s or co-signer’s credit history.
    • Often require collateral or a co-borrower.

      • Examples: HDFC Credila (India), Sallie Mae (U.S.), Prodigy Finance (international).

  • Based on Study Location

    • a. Domestic Education Loans

    • For students studying within their home country.
    • Covers tuition fees, hostel charges, books, and other academic expenses.

    b. Overseas Education Loans

    • For students studying abroad.
    • Covers tuition, travel, visa fees, insurance, living expenses, etc.
    • Usually have higher limits due to the higher cost of international education.
  • Based on Loan Coverage or Collateral

    • a. Secured Loans (With Collateral)

    • Borrower pledges property, fixed deposits, or other assets as security.
    • Lower interest rate and higher approval chance.

    b. Unsecured Loans (Without Collateral)

    • No collateral required, but interest rates are higher.
    • Usually depend on the applicant’s academic merit or co-borrower’s creditworthiness.
  • Based on Type of Course

    • a. Undergraduate Loans

    • For bachelor’s degrees or diploma programs.

    b. Postgraduate Loans

    • For master’s degrees, MBA, or doctoral studies.

    c. Professional / Vocational Course Loans

    • For specialized or skill-based training (e.g., pilot training, medical courses, coding bootcamps).
  • Based on Repayment Structure

    • a. Subsidized Loans

    • Government pays the interest during the study period or moratorium.
    • Example: U.S. Federal Subsidized Loans, India’s Interest Subsidy Scheme.

    b. Unsubsidized Loans

    • Interest accrues during the study period and must be paid by the borrower later.
  • Special Schemes
    • Education loans for women (lower interest rates or special benefits).
    • Loans for economically weaker sections (subsidized or interest-free loans).
    • Minority or reserved category education loans (government-backed schemes).

  • Complete your Application form with appropriate passport size photos
  • Birth Certificate or 10th grade certificate as proof of age
  • Get Admission letter print on the institution's letter head
  • Documents like Aadhar card, Permanent account number(PAN), Passport
  • Proof of Address or residency documents include ration cards and utility bills
  • Assurance that you have not got a loan from another lender

  • Holding Indian Citizenship
  • A good academic Performance enhances eligibility like, Achieving a Minimum of 50% Marks In HSC and Graduation
  • Age Criteria should be between 18 to 35 years for applicants
  • Ensure steady Income, preferably from parents for timely payment of bills and debts showcases financial responsibility
  • Evidence of enrollment in the college or university
  • Passport, I-20 form, and visa if studying abroad
 
     
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