Recently most of the professional institutes have increased their course fees. Therefore for most of the students the professional courses are becoming out of reach. The only option for this is education loan. How to get education loan?
Most of the banks are offering education loan online and some of the banks have opened their counters on the university/college premises for distribution of loans. You can even walk to any bank branch with in your reach and fill the application form for loan.
Many of the public sector banks are offering education loans up to Rs20, 00,000, whereas, private sector banks are relatively smaller players on education loans. On the loan amount up to Rs4, 00,000 no collateral is needed but on the amount up to Rs7, 50,000 third party guarantees is enough. Then some additional security by a third party or parents is needed.
The tenure for the repayment of the amount is six months after completing the course, before which only simple interest is charged. Parents can avail tax benefits on this interest. The interest charged is between 10.50% and 11.50% for the loan and there is no penalty for foreclosure of the loan.
Education loan is given for equipment and hostel fees as well. The maximum limit for domestic loans is Rs 10, 00,000 and for international courses Rs20, 00,000. The loan has to be repaid back in a maximum of 5 to 7 years. Though most of the banks offer similar interest rates but before choosing the bank do the research of interest rates and make sure you’ve estimated correctly the expense of your course and any details the bank has relating to tenure and commencement of repayment of the loan.
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