Education loans are the loans provided to the students to assist in payment of the cost of education such as school/college fee, hostel expenses, cost of books and stationery etc. Government of India is promoting education loans in such a way that it ensures, each and every student who desire for education, but due to financial problem who is unable to gain education can avail the education loan and fulfill his/her dreamed educational career. The main aim behind education loan is to bring education within the reach of the students and help them to improve prospects in life. Any student who has secured admission and whose degree/diploma is recognized by University /Institute affiliated to any central / state statutory body or recognized by the AICTE (All India Council of technical education) or any other reputed institute is eligible for the educational Loan.
The students who want to study in India can avail a maximum of Rs.7.50 Lakh of education loan and Incase the student who wants to study abroad can avail Rs.15 Lakh of educational loan. The candidates who are eligible for loans are all graduate, Post graduates and all the professional courses approved by the state government, central government and the foreign universities. Many colleges and universities have been tied up with the bank for the benefit of the students. The education loan covers the cost of school/college fee, hostel Expenses, cost of books etc. Apart from the said expenses any other expenses incurred during the study period can also be considered. The sum of money offered is against the guarantee, which can be given by Uncle, Neighbor or friend standing has a guarantee for the full amount of Loan.
The education loan should be repaid within 5-7 years in equated monthly installments (EMIs), commencing 12 months after course completion or 6 months after getting the job, whichever is earlier. Incase the students who want to avail overseas education loan for higher studies a loan of 7 lakhs or above, the sum of money is usually given against fixed deposits, NSC certificates and property worth the loan amount.
As India is the developing country education is an important factor which plays an important role in its economic development. Almost all banks in India provide education loans to the students to study in India as well as abroad. Apart from banks Educational loans in India are also provided by the charitable institutions and other private funding association. The boom in banking sector as led to the release of funds as education loan, which are easy to avail from the bank. As soon as the announcement of CAT or PMT/IIT JEE result , the executive of the different banks queue up for giving education loan.
Education loans are more and more becoming trendy with the greater importance on getting higher education from abroad, especially in higher education field. We are providing information on different banks which are offering education loan. Every year based on financial budget, the rates of education loans and education features varied from one bank to another bank.