An education loan usually takes care of the finances for your higher studies. It enables you to study without worries of payment of steep fees. With the growing cost of education, especially professional courses, loans for financing education are extremely common. Banks usually keep the education loan interest rate low and affordable for students. You can pay it back after your studies are complete, over a specific tenure.
If you are contemplating higher education or restarting your education, here is all you need to know about a short-term education loan.
Factors Affecting Education Loan Approval
The lenders the following factors before sanctioning an education loan to students-
Your ability to repay the loan- The credit history of the co-borrower must be clean if you want to be able to borrow the required amount of money.
Academic history- Students with a consistent academic record and higher marks tend to have a more promising future with better-paying jobs.
Hence, such students will get education loans easily.
Course- Your college/university and the academic course you want to pursue must have AICTE (All India Council for Technical Education), UGC (University Grants Commission), or government approval. You must also be able to provide a letter of acceptance to the college/university.
Education Loan Interest Rate and Tenure
Short-term loans are generally paid over a time of 2 years to 5 years. The value usually ranges between Rs. 25,000 to Rs. 2,50,000. The education loan interest rate is generally higher than that for long-term loans.
What Should Your Education Loan Cover?
An ideal education loan should cover-
• Tuition Fees
• Accommodation
• Exam Fees
• Library Fees
• Books and Equipment Fees
Documents You Need
• Letter of admission
• A detailed break-up of the costs pertaining to the course
• Completed application form for the loan
• Photographs
• KYC (Know Your Customer) Document
• Mark Sheets/Passing Certificates
• PAN Card of the parent/ guardian and student
• Any identity proof such as Driving Licence, Passport, Aadhar etc.
• Any residential address proof such as Driving Licence, Passport, Telephone bill, Electricity bill etc.
• Student/Co-borrower/ Guarantor's bank statement for the last half year
• IT assessment/IT return of parent/guardian/ other co-borrower of the last 2 years (if applicable)
• Statement of assets and liabilities of parent/guardian/other co-borrower
• Proof of income such as salary slips or Form 16 of parent/guardian/other co-borrower
Benefits of Education Loan
• Section 80E of Income Tax Act promises tax exemptions on the interest of education loans.
• Money is no longer a hurdle in your path to a good education.
• Repayment of education loan on time helps you build a good credit score for the future.
With a sound education loan, which removes your financial concerns, and hard work, there is no stopping you from getting into your dream career and achieving success.
If you are contemplating higher education or restarting your education, here is all you need to know about a short-term education loan.
Factors Affecting Education Loan Approval
The lenders the following factors before sanctioning an education loan to students-
Your ability to repay the loan- The credit history of the co-borrower must be clean if you want to be able to borrow the required amount of money.
Academic history- Students with a consistent academic record and higher marks tend to have a more promising future with better-paying jobs.
Hence, such students will get education loans easily.
Course- Your college/university and the academic course you want to pursue must have AICTE (All India Council for Technical Education), UGC (University Grants Commission), or government approval. You must also be able to provide a letter of acceptance to the college/university.
Education Loan Interest Rate and Tenure
Short-term loans are generally paid over a time of 2 years to 5 years. The value usually ranges between Rs. 25,000 to Rs. 2,50,000. The education loan interest rate is generally higher than that for long-term loans.
What Should Your Education Loan Cover?
An ideal education loan should cover-
• Tuition Fees
• Accommodation
• Exam Fees
• Library Fees
• Books and Equipment Fees
Documents You Need
• Letter of admission
• A detailed break-up of the costs pertaining to the course
• Completed application form for the loan
• Photographs
• KYC (Know Your Customer) Document
• Mark Sheets/Passing Certificates
• PAN Card of the parent/ guardian and student
• Any identity proof such as Driving Licence, Passport, Aadhar etc.
• Any residential address proof such as Driving Licence, Passport, Telephone bill, Electricity bill etc.
• Student/Co-borrower/ Guarantor's bank statement for the last half year
• IT assessment/IT return of parent/guardian/ other co-borrower of the last 2 years (if applicable)
• Statement of assets and liabilities of parent/guardian/other co-borrower
• Proof of income such as salary slips or Form 16 of parent/guardian/other co-borrower
Benefits of Education Loan
• Section 80E of Income Tax Act promises tax exemptions on the interest of education loans.
• Money is no longer a hurdle in your path to a good education.
• Repayment of education loan on time helps you build a good credit score for the future.
With a sound education loan, which removes your financial concerns, and hard work, there is no stopping you from getting into your dream career and achieving success.
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