student loan Can differ from other types of loans in the fact that the interest rate can be much lower and can be paid while the student is in school. Repayment Schedule may be postponed.
This led to renegotiation and bankruptcy in many countries. Bankruptcy also differ in the strict laws regulating This article throws light upon the differences in the student loan system in several major countries. from leading Indian banks to help students in India achieve their academic goals Educational Loan are available. Student Loan in India is available at very good Interest Rates.
Which courses are eligible for education loan? Lender to be determined by You full-time either Part Time Loans can be availed for higher education for courses, as well as loans for working professionals.
Features & Benefits of Student Loan in India ,
- Loan up to Rs.1 Crore financing is available.
- Loan repayment period up to 15 years.
- Get education loan for studies in India and abroad.
- Some lenders offer loan disbursement before applying for a visa.
- To collect the required documents Door Step service.
- Children of bank employees in many banks Preferential enjoy the rates.
- Some banks offer concessional interest rates to girl students.
- Moratorium up to 1 year after completion of the course (Moratorium) enjoy the period. During this period, you are not required to make payments on the loan.
- Enjoy tax benefits for up to 8 years on the interest paid.
Student Loan in India Eligibility:
- Indian Citizen
- Non-resident Indian (NRI)
- Overseas Citizen of India (OCI)
- Person of Indian Origin (PIO)
- Students born to Indian parents abroad and wish to study in India
- graduate program (Undergraduate Programs)
- postgraduate program (Postgraduate Programs)
- Doctoral Courses and Ph.D.
- Certificate courses of 6 months or more duration
- job oriented courses
- Technical/Diploma/Professional Courses
- Recognized Institutes and Government Colleges
- government aided private institutions
- professional institute
- International Colleges and Universities
Student Loan in India : Collateral
- From leading lenders Rs. Collateral-free loan up to Rs.7.5 lakh
- Collateral-free loan up to Rs.40 lakh for select courses/institutes from select lenders
- Acceptable Collateral: Residential or Commercial Property or Plot, Fixed Deposit, Insurance
List of Expenses covered in Student Loan in India:
Here’s what the loan amount will cover:
- tuition fee
- hostel fee
- Travel expenses money for students studying abroad
- insurance premium
- Cost of books/equipment/equipment/uniform
- Examination/Laboratory/Library Fee
- Cost of Computer/Laptop required to complete the course
- Security Deposit, Building Fund/Refundable Deposit, supported by bills/receipts of the institution
- Any other expenses required to complete the course such as study tours / thesis / project work
Tax Benefit on Education Loan | Tax Benefit on Student Loan in India,
Section 80E of the Income Tax Act of 1961 allows you to deduct the interest paid by you on your student loan. Individual borrowers are eligible for this benefit, which is available only for the purpose of higher education. The deduction applies to all fields of study, both in India and abroad. It includes both vocational and traditional courses.
This benefit is available for 8 years from the date you start repayment or till the interest component of your loan is repaid, whichever is earlier.
List of Documents Required for Education Loan | List of Documents Required for Student Loan in India:
Here is an indicative list of documents that most lenders ask for:
- Admission letter from educational institution
- Marksheet (Previous Education – School/college)
- age proof
- ID proof
- Address Proof
- signature proof
- Salary slip
- Recent Bank Account Statement
- ITR with Income Computation
- audited balance sheet
- Recent Bank Statement
- Proof of Turnover (Service Tax Return / Sales Receipt)
- Application Form
- Latest passport size photo
- Visa for studying abroad
How to apply Student Loan? How to Apply for Student Loan in India:
Online Application | Online Application:
This is the easiest and most convenient way to apply. There are two ways to apply online. The first is a direct application form which you will fill online, attach the required documents and submit the form.
The second is where you apply by providing all the requested details and the lender will get in touch with you to discuss the terms of the loan before going ahead with the application.
Online Application | Online Application:
Visit a Branch: You can apply for the loan by visiting your nearest branch with the required documents, discuss the loan terms with a representative, fill the form and apply in person.
Call the Lender: You can either call the lender or request a call back by expressing your interest. You can then discuss the loan terms and proceed to apply.
Banks and other financial institutions are now adopting digital methods to serve their customers better. One such way is by using a virtual assistant to clear your doubts and request assistance with the application process.
Education Loan Repayment Process | Education Loan Repayment Process:
The loan repayment period usually starts 6-12 months after completing your course or when you get a job, whichever is earlier. Different lenders offer different moratorium periods to the applicants to repay the loan. You will have to repay your loan through EMIs.
Here are the different modes of payment commonly available:
- Internet Banking – Pay online through the lender’s website or mobile app.
- Check – Drop the check at any branch.
- Direct Debit – Set up recurring payments to have your EMIs directly debited from your bank account on the payment due date.
- Pay through Demand Draft – DD.
The preferred mode of repayment varies between lenders. Hence, it is advised to check with your lender while taking the loan.
Some important details regarding the education loan repayment process are mentioned below:
Moratorium Period: In case of education loan, the beneficiary will be able to start repaying the loan after the completion of the educational course or after successful employment.
Part-payment of Education Loans: Beneficiaries of education loan will be allowed to make partial repayment of their loans. As an applicant, you can pay a lump sum amount to make part repayment of the loan.
If money is the only obstacle standing in the way of achieving your professional goals, consider taking out education or student loans to help you meet your goals. You can get collateral-free goals in which you do not need to provide any security to the lender and your repayments will start immediately after graduation. Many banks in India offer educational loans. You can contact your bank for interest rates.
Frequently Asked Questions (FAQ’s):
1. How much loan can I get as a student in India?
In general, you can get an education loan up to 4 lakhs for higher studies without any collateral. Under the education loan scheme, you can get a maximum of 15 lakhs for studies in India and more than 25 lakhs for studies abroad.
2. Does the Government of India give student loans?
The scheme envisages loans up to Rs. 7.5 lakh for studies in India and Rs. 15 lakhs for studying abroad. … The loan is to be repaid over a period of 5 to 7 years with a provision for a grace period of one year after the completion of studies.
3. Can you go to jail for not paying student loans?
You can’t be arrested or jailed for not paying student loan debt, but it can be overwhelming. Student loan debt is considered “civilian” debt, in the same category as credit card debt and medical bills. Because of this, they cannot send you to jail for non-payment.
4. Can I take 2 education loans?
Well, the answer to the above question is – Yes, a student can be eligible for a second education loan. For this they can either apply for a second education loan from the bank from where they have taken their first loan or they can apply for any other bank.
5. What is the percentage required for Student Loan in India?
The bank filed the present appeal contending that the candidates who have secured 60% or more marks are eligible to avail education loan as they alone can be considered as meritorious candidates.
6. How do I repay my education loan?
Education Loan Repayment – How To Repay Your Education Loan
Repayment of Education Loan by Cheque/DD (Demand Draft Repayment)
Cash payment of education loan.
Automatic EMI Payment of Student Loan (ECS/NACH)
7. Is the property necessary for the education loan?
To avail the loan from the lender, you generally have to pledge security like house property, fixed deposits, shares, bonds, etc. to avail the loan.