Can I Get an Education Loan up to Rs.1 Crore? Find Out Here!

An education loan, sometimes known as a student loan, is a type of financial assistance given to students taking technical, academic, or other courses both domestically and overseas by banks or other loan providers. Usually with a grace period of six months following graduation, these loans enable students to begin repaying after finishing their studies and finding employment.

Different Kinds of Student Loans

1. Loans for Undergraduate Education:

Available to students who, after finishing their secondary education, choose to pursue higher education.

2. Loans for Postgraduate Education:

For students starting courses after graduating from undergraduate school.

3. Loans for Career Growth Education:

For training, education, or certifications related to professional development.

4. Parental Education Loans:

To support their children's academic endeavors, parents may also apply for education loans.

Benefits and Coverage

Loans for education serve as a lifeline for borrowers, covering a variety of costs such as:

• Cost of tuition Accommodation fees
• Travel expenses
• Premiums for insurance
• Instruments, equipment, and books
• Fees for testing, laboratories, and libraries
• Costs associated with a computer or laptop for the course Building fund, refundable deposit, and caution deposit
• Any additional costs associated with research trips, theses, or projects
• With loan amounts extending up to Rs.1 crore and a flexible repayment tenure of up to 15 years, students receive substantial support throughout their academic journey. In addition, assistance is offered by Section 80E of the Income Tax Act, which allows for interest payment deductions.

Qualifications Standards

Generally speaking, qualifying for an education loan entails:

• Enrollment in reputable schools in India and elsewhere
• 10+2 completion is required for undergraduate studies, while a degree is required for graduate studies.
• Candidates must be enrolled in international colleges and universities, professional institutes, or government institutions.

Procedure for Applications

You can start the application procedure for an education loan online or offline. Essential documents required include:

• Admission letter from the educational institution
• Previous education marksheets (school/college)
• Age proof, ID proof, and address proof
• Signature proof
• Salary slips and recent bank account statements
• Income tax returns with income computation
• Audited balance sheets (for business owners)
• Proof of turnover (service tax return/sales receipt)
• Completed application form with a signature
• Latest passport-size photographs
• Appropriate visa for studies abroad

Repayment and EMI Calculation

An Education Loan EMI Calculator aids borrowers in estimating monthly repayments, providing insights into the holistic loan cost.Repayment usually begins 12 months after the course ends, and there are several options for payment, including demand drafts, internet banking, checks, and direct debit.

Lender Factors to Take Into Account

When granting loans, lenders take a comprehensive approach and take into account things like:

• The selected program and organization
• Loan amount Academic standing
• Family's ability to repay
• Resources and yearly earnings

Education Loan Bank Rates (As of June 2024)

For More Info:

1. SBI

2. Central Bank Of India

3. PNB

4. Canara Bank

5. IDFC First Bank

6. IDBI Bank

7. Bank Of Baroda

8. Bank Of India

9. ICICI Bank

10. Bank Of Maharashtra

11. Axis Bank

12. HDFC Bank

Tax Benefits on Education Loans

The interest paid on your education loan can be deducted under Section 80E of the Income Tax Act of 1961. This benefit is available for higher education loans, both vocational and academic, pursued domestically or internationally. The deduction applies only to the interest portion of the EMI and is available for eight years from the start of repayment or until the interest is fully paid off, whichever comes first.

Courses Covered

Education loans cover a wide range of courses including:

• Undergraduate degrees
• Postgraduate degrees
• Undergraduate diplomas
• Postgraduate diplomas
• Vocational training courses
• Skill development courses
• Doctoral programs

Education loans, with their extensive coverage and flexible repayment options, act as a crucial support system for students, helping them achieve their academic and career goals without financial constraints.

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Author- Ayush Naik 

Ayush Naik is an expert in personal finance with an MBA in Finance. With over five years of experience working alongside stock market traders, Ayush has a deep understanding of market dynamics and investment strategies. His practical insights and analytical skills have helped many individuals navigate the complexities of financial planning and investment. Ayush’s professional background and commitment to educating others make him a valuable contributor to our personal finance blog.