Education loan as the name implies is a loan given by financial institutions for educational purposes which covers all your fees, travelling, hostel, books, equipments, etc. Education loan in India is given for graduates and post graduates courses mainly, however the PhD and doctoral programs are also covered by some banks. The education loan India ranges from 2 to 22 lakhs depending on many criteria.
Though it is very evident from the name that it is a loan for education, it does not necessarily mean that it is given totally on student merit. For loan amounts above Rs 7.5 lacs you need to have collateral in order to avail education loan.
Education loan India is one of the cheapest loan available in India because of the large number of students present and it is one of the fastest growing sector in India. What is the eligibility for education loan? What is the interest rate? Listed below are few of the facts that you need to know before applying for an education loan:
• It is borrowed in the name of a student but it must have a co-borrower or co-applicant which can be your parent, spouse or siblings.
• The monthly income and credibility of the co applicant and guarantor in case of loan amount above 4 lakhs is also taken into consideration.
• It can be offered for both studying in India as well as abroad. The amount varies from bank to bank in both the cases.
• Loan amounts up to 4 lakhs does not need to have a guarantor or collateral. However, a guarantor is needed in case of the loan of above 4 lakh and up to 7.5 lakhs. After 7.5 lakhs loan is given only against collateral.
• Repayments period is generally between 5 to 7 years and start after 6 months to a year after the completion of the course.
• Interest rate of education loan India ranges from 1% to 3%. However, after adding the cost of operations or the marginal cost, it falls in the range of 11% to 15%.
• Your loan amount to be sanctioned depends on the course against which the loan is sought and also the quality of the college in which you have applied.
Before applying for education loan you need to make yourself clear about the fact that the education loan will not cover your 100% expense. But still it is of great help for deserving and needy students as it nearly covers all your expense for education.
Though it is very evident from the name that it is a loan for education, it does not necessarily mean that it is given totally on student merit. For loan amounts above Rs 7.5 lacs you need to have collateral in order to avail education loan.
Education loan India is one of the cheapest loan available in India because of the large number of students present and it is one of the fastest growing sector in India. What is the eligibility for education loan? What is the interest rate? Listed below are few of the facts that you need to know before applying for an education loan:
• It is borrowed in the name of a student but it must have a co-borrower or co-applicant which can be your parent, spouse or siblings.
• The monthly income and credibility of the co applicant and guarantor in case of loan amount above 4 lakhs is also taken into consideration.
• It can be offered for both studying in India as well as abroad. The amount varies from bank to bank in both the cases.
• Loan amounts up to 4 lakhs does not need to have a guarantor or collateral. However, a guarantor is needed in case of the loan of above 4 lakh and up to 7.5 lakhs. After 7.5 lakhs loan is given only against collateral.
• Repayments period is generally between 5 to 7 years and start after 6 months to a year after the completion of the course.
• Interest rate of education loan India ranges from 1% to 3%. However, after adding the cost of operations or the marginal cost, it falls in the range of 11% to 15%.
• Your loan amount to be sanctioned depends on the course against which the loan is sought and also the quality of the college in which you have applied.
Before applying for education loan you need to make yourself clear about the fact that the education loan will not cover your 100% expense. But still it is of great help for deserving and needy students as it nearly covers all your expense for education.
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