The function of education is to teach one to think intensively and to think critically. Intelligence plus character - that is the goal of true education,’ – Martin Luther King, Jr.
For a successful and complete life, quality education is a must. For many students, it is about graduating from top college. However, the cost of education is increasing rapidly. Simultaneously, the price and quality of education in reputed colleges is growing dramatically. To provide the best training to their children, parents take up mutual funds or fixed deposits for long-term purpose. Despite all this, some might face shortage of funds. That is when education loan is taken to cover up the deficit.
What is education loan?
An education loan bridges the gap between scarcity and required amount. It assists students to study in reputed colleges in India by providing financial aid. With education cost increasing at an average of 15 percent per annum, attaining an education loan in India is easy.
With education loan provided to students who do not possess enough expense, the primary education loan eligibility is the students’ academic excellence and achievements.
Criteria for an education loan
Some of the essential education loan criteria are:
- The student must be resident of India
- He/she must have confirmed admission in a recognised institute in India or overseas
- The age bracket of the student must be within 18 to 35 years
- He/she should be undergoing a graduate/postgraduate course
- The student must secure admission in a college affiliated by UGC/Government/AICTE, etc.
- Students who are intending to pursue full-time courses need to have a co-applicant. They can be either parent/guardian or spouse/parent-in-law.
Now that you know the criteria let us understand education loan in detail. Why should one opt for it?
What are its benefits?
1) The student on whose name the loan has been taken can claim a deduction for the entire interest under Income Tax Act section 80E. However, this can be availed if the investment is made from a specified financial institution that is listed on behalf of the Central Government. Also, it can be taken only when the student is pursuing higher education.
2) The education loan not only covers the deficit amount but almost the entire study expense like tuition fees, library and exam fees, cost of uniform and books, and travel costs.
3) Banks generally offer 0.5 percent discount on the education loan interest rate for female students, who are pursuing higher studies.
4) One receives a holiday period of 6 months to 1 year known as moratorium period under which you do not have to repay the loan. It means the repayment does not begin immediately after the conclusion of the course.
Education is a way of inculcating culture in children, moulding their behaviour, and eventually guiding them to their role in the society. In short, education is the tool to shoo away the evils of the societies.
For a successful and complete life, quality education is a must. For many students, it is about graduating from top college. However, the cost of education is increasing rapidly. Simultaneously, the price and quality of education in reputed colleges is growing dramatically. To provide the best training to their children, parents take up mutual funds or fixed deposits for long-term purpose. Despite all this, some might face shortage of funds. That is when education loan is taken to cover up the deficit.
What is education loan?
An education loan bridges the gap between scarcity and required amount. It assists students to study in reputed colleges in India by providing financial aid. With education cost increasing at an average of 15 percent per annum, attaining an education loan in India is easy.
With education loan provided to students who do not possess enough expense, the primary education loan eligibility is the students’ academic excellence and achievements.
Criteria for an education loan
Some of the essential education loan criteria are:
- The student must be resident of India
- He/she must have confirmed admission in a recognised institute in India or overseas
- The age bracket of the student must be within 18 to 35 years
- He/she should be undergoing a graduate/postgraduate course
- The student must secure admission in a college affiliated by UGC/Government/AICTE, etc.
- Students who are intending to pursue full-time courses need to have a co-applicant. They can be either parent/guardian or spouse/parent-in-law.
Now that you know the criteria let us understand education loan in detail. Why should one opt for it?
What are its benefits?
1) The student on whose name the loan has been taken can claim a deduction for the entire interest under Income Tax Act section 80E. However, this can be availed if the investment is made from a specified financial institution that is listed on behalf of the Central Government. Also, it can be taken only when the student is pursuing higher education.
2) The education loan not only covers the deficit amount but almost the entire study expense like tuition fees, library and exam fees, cost of uniform and books, and travel costs.
3) Banks generally offer 0.5 percent discount on the education loan interest rate for female students, who are pursuing higher studies.
4) One receives a holiday period of 6 months to 1 year known as moratorium period under which you do not have to repay the loan. It means the repayment does not begin immediately after the conclusion of the course.
Education is a way of inculcating culture in children, moulding their behaviour, and eventually guiding them to their role in the society. In short, education is the tool to shoo away the evils of the societies.
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