Education is one of the basic building block for a successful life. ‘Quality Education’ is a term often linked to an acclaimed or an influential Educational Institute. However, one has to keep in mind that, ‘Quality Education’ is in no way cheap. Instances of meritorious candidates, failing to join a reputed institute due to financial constraints is no less common.
Hence, an Education Loan is most often a primary requirement for ‘Quality Education’. These funds are offered by almost all banks for deserving students to pursue their education in either India or abroad.
Why Education Loan:
- Expensive Education: Accumulating sufficient money to fund one’s education is a no easy task. One can never be certain on the amount to accumulate, owing to inflation and shifting prices in the market. Financial Institutes offer loan amounts ranging from INR 5 lakhs to INR 20 lakhs. Every Financial Institute have their own criteria to determine the minimum and the maximum loan amount.
- Easy Availability: With the RBI listing education Loan as a part of the priority sector lending for banks, it has become a priority product for most banks. Education loan is available for both domestic as well as international Educational Institutes for various courses, including graduation, post-graduation, vocational and certificate courses.
- Tax Benefit: Under Section 80E of the Income Tax Act, entire amount of interest paid for an education loan is tax exempted.
- Discounts/ Lower Interest Rate: Most financial institutes offer discounts or lower interest rate for Female and economically backward students. The Government of India also has subsidy schemes to help students from economically backward sections of society.
- Easy Repayment: Repayment tenure can stretch upto 5-7 years for most financial institutes. This removes the overburden of larger EMIs for students at the start of their Professional Career.
While you inquire with banks for Educational Loan, we are working on some tips to plan your Education Loan. Keep visiting!