Get the money you need for school

Till some years back higher education and quality education was not affordable to some illustrious students because of the financial constraints. There was no any alternative but to jump in the job market prematurely. And this led to untimely end of budding talents and their forceful transformation into to the mediocrity. Scholarshipswere there, but those were so less in numbers that only luckier few could avail them. But now the scene has changed drastically. The boom in the banking sector has led to release of large amount of funds for education loans. Now, education loans are easily available from various banks in India and this change is encouraging more and more students to take up higher education despite their financial shortcomings. Many nationalized banks have come up with various educational loan schemes that students can benefit from. Even private banks are not lagging far behind. The wave of change could be well gauged from the amusing situation that immediately after the results announcements of CAT or PMT/ IIT JEE, the representatives of the banks queue up for giving education loans to the successful candidate even with very flexible conditions. This scenario is certainly helping the illustrious students to pursue higher education and realize their dreams. Here, we have tried to list the name of banks and the details about various educational loans provided by them.

Benefits of Taking Education Loans

The question which sometimes puzzles the mind of both aspiring students and parents is why one should opt for an education loan

1. Financial support for professional courses such as MBA, BTech and MBBS
2. Avaliable for higher education in India and abroad
3. Easy repayment only after job placement
4. Affordable Interest Rates
5. Lesser burden on parents
6. Loan cover upto as much as 20 lac avaliable by various banks
7. Expenses such as tuition fees, travel expenses, hostel charges are included in education loan

Feature

The interest rates range between 10-13% (depending on the size of the loan and the collateral provided).

Female students get a concession from 50-100 basis points.

Some banks levy processing charges of 1% for overseas loans.

If the overseas loan amount is more than Rs.4 lacs banks do insist on margin money of 15%.

The repayment of the loan starts as soon as the student secures a job or six months, after the completion of the course (whichever is earlier). The repayment tenure is usually between 5-7 years. Person repaying the loan (student or co-borrower – parent/spouse) can claim tax deduction on interest paid on this loan under section 80E.
Student loans or educational loans are paid on semester basis, so if an alternate arrangement works out like securing a scholarship or like wise you will have a choice not to avail of few installments.