Saving is less for Child's Higher Education? Take Education loan like This|Education loan eligibility|Education loan Process|Skill loan is also available for online education|Loan collateral, margin and search.

Saving is less for Child's Higher Education? Take Education loan like This. 

Higher education is becoming increasingly expensive over time.  Take the example of a well-known Government Management College.  In the year 2004, his MBA fee was around 2.5 lakh rupees.  By 2019 it has increased to Rs 22.50 lakh.  If the fees of this course increase rapidly, it will cross one crore in ten years.  It is not easy to deposit such a large amount.  And where savings are less, education loan comes in handy.  Where to get it, how to get it, how much it will cost, let us know:

The primary applicants for education loans are the students themselves.  The bank can ask for a parent, siblings, spouses or guardians as co-applicants.  Generally this loan is taken to study from a recognized educational institution.  Loans are obtained for degrees, diplomas or other courses from colleges or universities approved by UGC, AICTE or IMC.  Loan is also available for studies abroad.  For this, the applicant has to fulfill the conditions of the lending institution.  There may also be an age related condition.  For example, a private bank gives loans to applicants between the ages of 16 and 35, but most government banks do not ban age.  Education loans can cover full tuition fees, hostel fees, library fees, book expenses, examination fees and vehicle costs.  Study laptop.  For example, the cost of equipment etc. and the cost of commuting abroad can also be repaid from the loan.  Banks give you loans according to your policy.  For example, a big government bank will give you a loan of usually up to 20 lakh for a course anywhere in the country.  If you have been selected in a well-known college like IIT or IIM, then this bank will give you 100% financing.  If you go to study abroad, the bank will also give loans up to 1.5 crore.

When will the loan be repaid ?

Banks will give you up to 15 years to repay the loan.  Apart from this, there will be an extension of 12 months, so that you can find a job after studying.  You will not have to pay installment in these 12 months, but interest will continue to be added on the loan.  If you want, you can pay interest regularly, so that the loan does not increase.  In some situations, the borrower will want to start the second course as soon as the first course is over.  In such situations some banks will ask you to repay the loan after the second course.

Loan collateral, margin and search.

Generally, you do not have to pay any collateral on loans up to 7.5 lakhs.  If the loan is more than this, any property like fixed deposit, house or land will have to be mortgaged to the bank.  Apart from this, most banks will not ask you for a margin of up to 4 lakh loans.  Suppose the cost of the course is 3 lakh then 100% loan will be given, but if the cost is 5 lakh, the bank would like you to pay at least 5% part yourself and take the rest from the bank.  There will also be a processing fee on the loan, which every bank decides according to its own.

Skill loan is also available for online education.

Nowadays there is also a phase of online courses and vocational training.  For this, you can take a special education loan, which is called many bank skill loans.  This loan is for courses that you can complete in a few days or months.  For example, a government bank can give you a loan of 5000 to 1.5 lakh without collateral.  The rates of such loans are only slightly lower than personal loans.

Income tax rebate is available on education loan.

The Income Tax Act provides tax exemption on interest paid on education loans under Section 80-E.  If you are a co-applicant of the loan, you can also get this tax exemption.  However, this exemption in income tax is available only for 8 years from the start of repaying the loan.  If the loan tenure is more than 8 years, there will be no tax relief in the following years.

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