Education loan is taken from banks or any other financial institutions for education. In this, all banks have their own procedure for giving loans.
Many times education loan is taken from banks or any other financial institutions for further education of children. In this, all banks have their own procedure for giving loans. At the same time, the interest rates of all banks are also different. In such a situation, if you are going to take an education loan, then we are telling you about 5 such banks which are offering education loan at very low interest rate.
It is necessary to fulfill these conditions for education loan
the student must be a citizen of India
Admission to approved educational institution must be verified
There is also a rule of age for loan application
It should be at least 18 years and maximum age of 35 years
In case of married applicants, students taking full time program should have a parent / guardian or spouse / parent-in-law as co-applicants.
These documents will be required for loan
2 passport size photos with application form
Aadhaar / PAN card of student and his / her parents, age proof
Aadhaar card, voter ID, passport, driving license
Student’s Bank statement for last 6 months
Ration card copy and utility bill, rental agreement
Income proof (Form 16 of parent, guardian or co-borrower, salary slip of last 3 months, bank statement or last 6 months of borrower Update Passbook, Recently Filled ITR)
These banks are offering cheap education loan
Union Bank of India is offering the cheapest education loan. Its education loan interest rate starts at 6.8 percent. At the same time, with a repayment period of seven years, Education Loan (Education Loan) of Rs 20 lakh is being offered by Central Bank of India at an interest rate of 6.85 per cent. At the same time, the interest rate in SBI, PNB is 6.9 percent. At this time, education loan will be available at Bank of Maharashtra at 7.05 per cent and Indian Bank at 7.15 per cent interest. These interest rates are for loans up to Rs 20 lakh.
You can also apply online for
Education loan documentation, no physical documents are required. This process will be very fast and can be completed electronically only without asking physical visits from banks. However, the process may vary depending on the conditions set by different banks or lending institutions. Apart from this, if you are not successful in applying with the necessary documents, then the loan application will be made. You can also apply for a loan through the government’s Vidyalakshmi scheme.
Spending increasing at the rate of 15 percent
According to a study, the cost of studying is increasing at the rate of 15 percent annually. At this time, if the cost of studies is Rs 2.5 lakh, then after 15 years, it will cost 20 lakh rupees to do MBA. If a parent invests Rs 2000 every month for 15 years from now and assuming an average return of 12 per cent, then it will only add around Rs 9.5 lakh.
These benefits are available in education loan,
Education loan covers the basic fees of the course and other college expenses (stay, exam and others). Students going abroad for studies or higher education in India can take a loan. For both places, the loan amount may be different for studies. The student pays the repayment loan. Usually the repayment starts six months after the end of the course, sometimes banks give six months of deferment. This delay can also be six months after getting the job or one year after the completion of the course. This loan has to be repaid in five to seven years, many times banks can extend it further. The interest on the loan is normal during the duration of the course and this interest has to be paid in the form of EMI, so that the student is not burdened much after the completion of the course.
Before taking a loan, keep these things in mind
while applying for a loan, check about its processing, prepayment, late payment fees, etc. Most banks charge a processing fee of 0.15 per cent of the loan amount. Income tax exemption Under Section 80E of the Income Tax Act, the amount paid as loan interest is exempt. This rebate is available to a person on interest paid on loans taken by himself, children or legal parents for the education of the child. You can deduct the total interest of the loan from your taxable income. This rebate can be availed for a maximum period of eight years. Conclusion Education loan as an initial loan can prove to be helpful in improving your credit rating. For this it is necessary that you repay it at the right time. This will give you an opportunity to get a home, car or other loan easily in future.
The process of education people
Will make it easy for the student or their parents to take an education loan from the bank where they have an account. The educational institute where the child is going to study should be recognized by the government. There are two types of education people. One for studying from a recognized institute in the country and the other for studying abroad. Education loan starts from 4 lakhs, which can be more than 20 lakhs.
According to Veda Ratan, lead district manager of Noida, people who have not been taking education loans since Corona, the district was given a target of Rs 181 crore for education loan in the financial session 2020, but till September month 8 crore 43 Education loan of Rs. Lakh has been taken. It was informed that in the year 2019, education loan was taken from banks for Rs 216.55 crore. Whereas in 2020 only education loan of 78.42 crore rupees has been taken.