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Quality education is a crucial investment for you, but the increasing costs can be a significant barrier. Fortunately, education loans offer a viable solution to finance academic pursuits. Let's dive into the essentials of education loans, exploring types, features, and benefits.

What is an Education Loan?

Education loans serve as lifelines for students aiming to pursue higher education amidst rising academic costs. These loans are financial instruments specifically designed to alleviate the burden of educational expenses. They cater to a diverse range of educational needs and scenarios, ensuring that financial constraints do not hinder one's academic aspirations.

Features & Benefits

Loan Amounts

You can borrow up to Rs.1 crore for international studies and up to Rs.50 lakh for domestic education.

Flexible Repayment

Repayment periods extend up to 15 years, with a grace period of 6 months to 1 year after completing your course.

Tax Benefits

Enjoy tax deductions on interest payments under Section 80E, reducing your overall tax burden.

How to apply?

Applying for an education loan is simple:

1. Online: Choose a suitable loan scheme, fill out the application form, attach required documents, and submit online.

2. Offline: Visit a bank branch, fill out the form manually, and submit it along with necessary documents for processing.

Repayment System

After completing your course, you typically have a grace period of 6 months to 1 year before starting repayments. Monthly payments are based on your income, with a maximum repayment period of 8 years.

Types of Education Loans

Domestic Education Loan

Designed for students pursuing education within India, contingent upon admission to an Indian educational institution and meeting lender criteria.

Overseas Education Loan

Aimed at students aspiring to study abroad, covering expenses like airfare, accommodation, and tuition fees, subject to eligibility criteria.

Undergraduate Loans

Offered to support students in completing their undergraduate degrees, typically spanning 3 to 4 years and providing a foundational qualification for future endeavours.

Postgraduate Loans

Tailored for individuals seeking advanced degrees, such as master's programs, enabling deeper specialisation and enhanced career prospects.

Career Development Loans

Geared towards professionals looking to enhance their skills and qualifications through specialised courses, facilitating career advancement and growth.

Loan Against Property, Deposits, and Securities

Leveraging immovable assets or financial instruments as collateral to secure funding for educational purposes.

Education loans are vital tools that enable students to pursue their academic dreams without financial constraints. Understanding the different loan options, their features, and repayment structures empowers students and families to make informed decisions, ensuring a brighter future through education.

Disclaimer: The information provided here is just for an educational purpose only, You are requested to consult your advisor before applying.