Education Loan: Many times it happens that financial problems come in the way of your desired career. Students do not have enough money to pay the heavy fees of the institute. In such a situation, sometimes they have to kill their dreams. Due to high fees of institutions, many students are not able to fulfill their dreams. In such a situation, education loan can prove to be very beneficial for them. This loan not only helps in pursuing courses like medical, engineering, management but also helps in fulfilling the dream of studying abroad.
If you are thinking of taking an education loan, then it is important to have knowledge of the required documents and application process. Let us know what documents are required for education loan and how to apply.
What is education loan?
Education loan is a financial support given by banks and financial institutions, which helps the students to bear the expenses of their studies. This loan covers the tuition fees, boarding fees, travel and all other expenses that the student incurs while studying. May have to be lifted during. Flexible payment options and moratorium period allow students to focus on their studies and start repaying the loan once they get a job.
How many types of education loans are there?
1. Undergraduate Loan: After high school, undergraduate loans may be taken out to continue your studies in college.
2. Postgraduate Loan: After completing undergraduate studies, Postgraduate Loan is taken for further education.
3. Professional Advancement Loan: Loans for specialized courses to enhance one’s skills, certifications or professional competence.
4. Parents Loan: Parents take loans for the education of their children so that they can help them in their studies.
Benefits of education loan
1. Higher Loan Amount: Under this you can get a loan up to ₹ 1 crore.
2. Flexible Payback Tenure: The loan can be repaid for 15 years.
3. Worldwide Coverage: Student loans are available not only in India but also abroad.
4. Pre-Visa Disbursement: Some lenders release a fixed amount even before you get a visa for overseas studies.
5. Easy Process: The documentation process is quite simple and some banks offer doorstep service for document collection.
6. Special Benefits: Concessions for female students and children of bank employees get preference.
7. Moratorium Period: The loan does not have to be repaid for one year after the completion of the course.
8. Tax Benefit: Tax exemption on interest payment on education loan can be availed for up to eight years.
Education Loan Eligibility
Education loan is available for all courses that are government recognized, such as undergraduate, postgraduate, diploma, technical, professional and career courses. Furthermore, the applying student must have passed from government recognized universities or foreign institutions. In terms of educational qualification, for undergraduate course it is necessary to have passed 12th class and for postgraduate course the applicant must have a bachelor’s degree.
How to apply for education loan
You can apply for education loan both online and offline.
online application
1. Step 1: First of all go to the website of the bank of your choice.
2. Step 2: Find the Education Loan section on the website and select it.
3. Step 3: Fill all the necessary information in the application form.
4. Step 4: Upload all the required documents like ID proof, address proof and educational documents.
5. Step 5: After this the bank will examine your application. If all the documents are correct, the bank will credit your loan amount to your account.
offline application
1. Step 1: First of all go to your nearest bank branch.
2. Step 2: Get the education loan application form from the bank.
3. Step 3: Fill your required personal information in the application form.
4. Step 4: Submit the application form along with all the required documents to the bank so that they can do the verification.
5. Step 5: The bank will verify your application and if everything is found correct, the loan amount will be credited to your account.
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