Getting an education loan is a necessity for taking up higher education. Increasing fees of the courses and the raising inflation has made it possible to pay education cost entirely on the savings and income of an individual. Hence, study loans in India particularly focuses on the needs of education like the course fees, the library fees, the traveling expenses, accommodation charges, hostel charges , living charges upto some extent which is equal to pocket money. Education loan is not only for poor and meritorious kids but it is also taken by middle class and students for upper middle class families.
Study loans in India are given by various banking and non-banking financial institutions. The study loans are given at a lower interest rate of 12.75 % with a mere processing fee of 1-2 % of the loan amount. These loans given by various banking and non-banking financial institutions are boon for the students who dream of pursuing higher education in a good college. There is an increase in the number of study loan in India over the past two decades. The study loans given in India are more affordable than the self-finances and the personal loans due to the flexibility in the interest rates, the tenure for the repayment of the loan and the moratorium period which is the salient feature of these education loans.
Features of Study loans in India:
- Interest rate will be charged as per the base interest rate of the particular bank or the financial institutions. Interest will be applicable till the duration of course and the commencement of the repayment of the loan. Women candidates also get concessions on the Study loan in India.
- You can apply for Study loans in India, after receiving the confirmation of admission from the college, the bank or the financial institution will send an acknowledgment number. You can also apply online for the loan by just going on the website, filling in the required information. Uploading the scanned copies of the mark sheets and the required documents.
- Repayment of the loan will be after completion of the course or after 6 months of getting a steady job. The student can also take up a part time job and save money. Usually at the start of the career the salary is meager hence, the banks provide the stepping EMI facility. The stepping EMI facility makes the EMIs smooth and burdens less. The equated monthly installment will be low generally during the start but will go on increasing eventually.
- Usually parents are the joint borrowers, but incase if the candidate is married then the spouse will be the joint borrower of the study loan.
- Top up loans are available if the candidate decides to take up further studies during the interval of course. The repayment of the study loan will be available after the completion of the study.
Before availing Study Loans In India always check for the available options so that you avail for a studyloan with a lower interest rate and the loan offers flexibility in the repayment options.