A study conducted in 2018 showed that the cost of education is rising at an average rate of 15% per year. This makes education loans one of the best ways to pay for higher studies.
Students can learn how to get education loan by keeping in mind the points mentioned below –
- Applicant must be a citizen of India.
- Must have passed their higher secondary exam.
- Admission is already secured in a recognised university/college.
- Must have co-applicants.
- Third-party guarantor is required for loans between Rs.4 lakh to Rs.7.5 lakh. Loans exceeding Rs.7.5 lakh require collateral.
- Admission letter for the educational establishment.
- Copy of a fee structure.
- Marksheets up to the highest level of education.
- Income proof and IT return of the co-applicant.
How to apply
- Seek an appointment with the officials or apply online.
- Talk about terms, loan amount, tenor, repayment and necessary charges.
- Provide documents after receiving necessary documents.
For higher studies in India, 5% of the loan amount has to be financed by the applicant. Loans for overseas education require a self-financing of 15%. Individuals can use an educational loan EMI calculator to plan future repayments once the course is over.
One of the drawbacks of an education loan is that it only covers tuition fees and other charges related to studies. Consequently, a loan against property for education provides the student with the necessary funds to manage their educational and daily expenses simultaneously.