.How an Education Loan Can Support You to Realize Dreams? In today’s world, it’s important to receive a top quality education to start a successful career. Sometimes, in developing countries like India, it becomes imperative to teach your children in reputed and premier academic institutions to urge a decent head-start for a well-paying job. However, these prestigious schools and colleges are pricey and sometimes difficult to induce into. This has led to many parents seeking Education Loan in India, more so than ever.
For students contemplating education abroad, the expenses are even higher. Moreover, the fees in private colleges are far more as compared to government colleges. In such cases, students and parents alike like better to take an education loan.
Why is it better to settle on Education Loan over personal loan? Several people are of the opinion that a private loan is more beneficial than an Education Loan. But it’s not true; personal loans come at higher rates of interest and one finishes up paying more eventually. On the opposite hand, Education Loans have batch of benefits and conveniences, and are specifically meant for education which reinforces the lives of the scholars and serves to drive their successful careers.
How to Get an Education Loan?
The Government of India has come up with a Comprehensive Educational Loan Scheme together with Indian Banker’s Association (IBA) and therefore the reserve bank of India. This scheme encompasses sponsorship for all types of courses in schools and colleges, in India also as abroad.
Education Loan Interest in India:
So what’s the education loan interest in India? In India, interest rates for an Education Loan differ from bank to bank. It are often anywhere between 12% and 16%, which usually depends on the bank’s base lending rate. As per RBI, the bottom lending rate for banks in India is 9 to 10%.
Tax Benefits of Taking an Education Loan:
An Education Loan not only finances the expenses for higher studies from the foremost prestigious institutions across the world , but also enables one to save lots of tons of tax. Under Section 80E, if you’ve got a licensed Education Loan and are repaying an equivalent in installments, the entire interest paid thereon is allowed to be treated as a deductible from the entire income during the financial year. the simplest part is there are not any limitations on the utmost amount which will be allowed for deduction.
Pre-Requisites to use for Education Loan in India:
There are some basic conditions that require to be fulfilled before taking a loan. the wants and therefore the Education Loan details are as follows:
The major determinants are the fees of the course also because the applicant’s annual family income.
There must be a co-applicant which might be one among the relations like parents, spouse or sibling.
Loans but Rs. 4 lakhs don’t need a security or guarantor.
For loans quite Rs. 7.5 lakhs, one needs collateral.
When it involves studying abroad, a student must hunt down part-time jobs or sponsorship because the loan amount might not be sufficient.
If you’re getting to study abroad, taking over insurance is mandatory.
Since not everyone can afford to be enrolled in premier academic institutions.