Being educated is the basic necessity yet it comes at a cost. Now-a-days, professional courses have become very expensive.
For instance,studying in IIM-A for the two academic years costs approximately Rs.21 lakh. Similarly, in a medical course, itis Rs 25 lakhwhile the cost goes upto Rs 60 lakh for similar courses abroad. It is very hard for the lower and medium income groups to pay for such kind of education.
Money should not be an obstruction to pursue a dream. So,the best option is to go for an education loan.
What is an Education Loan?
- It is a financial support or a facility to every student, who can’t afford the costs of education.
- The major purpose of the loan is to provide the better educational opportunity to the bright but, financially backward students.
The Government of India is trying it’s best to provide education for all by coming up with the schemes like Sukanya SamriddhiYojna,Beti Bachao Beti Padhao Yojna, Udaan Scheme,etc.
Education loan is considered under the priority sector and every year the government is increasing the figures of subsidies under such schemes.
- The student should be an Indian National.
- Age of the Student – 18 to 35 years
- Confirmed admission in a college/university in India or abroadrecognized by the UGC/Government/AICTE/Appropriate Authority
- Scored minimum 60% (50% for SC/STs) in the examination for admission to graduation courses
Coverage of the loan
- College and Hostel fee (incl. examination, laboratory, library fee)
- Purchase of books,instruments,equipments
- Travel expenses for abroad
- Any other education-related expense required to complete the course – like study tours, project work, thesis, etc.
- Rate of Interest – 10-12 %
- Term – 5-7 years
- Up to Rs. 4 Lakhs: No collateral is required, but a parent needs to be the co-applicant.
- Between Rs. 4 Lakhs to Rs. 7.5 Lakhs: The collateral should be a third party guarantor along with collateral security from the parents.
- Above Rs. 7.5 Lakhs: The parents need to be co-borrowers and tangible collateral security is required.
- Repayment: The repayment is started one year after the end of the studies or 6 months after the beginning of the employment, whichever is earlier.If the student is not able to complete the course within the particular time,then an extensionof time for completionof course may be permitted for a maximum period of 2 years.
- Tax Benefits: Under Section 80E,an individual can avail the tax benefit if he has taken up an education loan to support higher studies of self, children, and spouse, or for the student for whom he is the legal guardian.
In today’s time, when education has become so costly, there is a great need of a platform where one can apply and connect with several bankers at a time. CapitaWorld is a Fintechplatform that works in an automated environment, where fund seekers and providers can directly connect with each other. The major benefits of using such platforms are:-
- No upfront fees– No fees/commission charged from the applicant
- Competitive Interest rate – Since such platforms have many tie-ups with banks, NBFCs, and financial institutions,the fund seeker will get best rates in the market.
- Simple & Quick loan procedure–We have OneForm concept under which, by filling a single form one can apply in multiple banks.
These kind of platforms will make the process very easy and transparent. India with the highest number of the Youth population in the World can make the best use of education loan. It’s a healthy investment for developing a better future.