Sunday, October 28, 2012

Education Loans in india


Education loans are provided many bank and co-operate sansthans in india. those help in education of students.

Education loans are provided by most of the well renowned branches all over India, even in foreign countries too. The main aim of this education loan is to help the students who cannot afford such huge amount for their Graduate degrees. Some Banks also provide loans for reputed diploma courses. After availing loans, the students need not pay their tuition fees every time in Q – basis. The bank, which is offering the loan for the student, will directly pay for him. The loan can also be claimed for books and hostel fees if the student is financially challenged.

Nature of Education Loan: - Statistics say that, in India most of the banks are offering education loans from 7 – 8 lacs. Some banks offer education loans on semester basis. For the students who are moving abroad they are offerred loan amount of about 14 lacs. Education loan is not similar to any other loans. Here, there is so much of concession is given to the students who are availing for the same. The repayment of education loan starts only after one year of course completion. Such a beneficiary terms has been made by the banks for the progress of students. Students have to repay the principal amount and interest amount to the concerned bank. They can pay back to the bank by means of EMI basis or in full payment after they get the job within one year period.

Requirements of applying for education loan, For applying an Education loan in India, the students must submit the following documents. They have: -

Address proof
Photo ID proof
Recent Mark sheet
Tuition fee structure
Bank account statement
Recent photos of the student
College ID proof

The above proof structure varies depending upon their rules and norms.
For availing Education loan in abroad, all banks need guarantor for further process. The guarantor may be the student’s parents who also have to submit the documents like property copy, proof for income. If the loan exceeds above 5 lacs then the guarantor should show the similar property value of their own. Then only the concerned bank checks the details of the property whether it will cost as same as their amount. In education loans the main advantage is the interest rates which are mostly attractive. Their fixed and floating interest rates vary from bank to bank. Some premium institutes themselves know about the interest rates for education loans and choose the opt one and tie up with the concerned bank. Hence, the students need not worry about those things as the institute itself will arrange for it.

Under Section 80E, every individual can get the benefits of Income tax on Education loans. Thus, the tax breaks ups also given under Section 80 C for the benefit of students on their Education loans. Almost all of the public and private banks offer education loans for the students for the students’ progress and bright future. If the performance of student slows down, the loan availing bank will stop providing money to the concerned student.

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