There exists a broad gap between the living expenses of India and countries abroad. Thus, managing finances is a concern for even well-off families. Additionally, many talented students face a financial crunch, and they can't afford to study and live abroad. Such students should consider the provision of education loans.
Education Loan Eligibility Criteria
Because studying abroad promises a bright future, several private and public banks offer loans for students.
Following are the eligibility criteria of students who can get education loans:
- The student must be an Indian student.
- Students must complete 18 years of age to get a loan in their name, or their parents/sponsors can get the loan.
- Students must have secured admission to a foreign university.
- The excellent academic record of the student.
Students can get their bank loan approved if they furnish the required documents. They are:
- Academic records
- Admission proof
- Application form
- Entrance exam scores
- Photo Id
- Income proof
- Proof of Residence
- Education Loan Collateral documents
Tenure of Education Loan
Education loan can be repaid using the EMI option for a tenure of 5-7 years. Some financial entities like NBFCs offer a bank loan for 12 years for larger amounts.
Why Education Loan
It's quite possible that you already have the funds to study abroad. But an education loan has several benefits over self-funding:
- 100% Finance
Students can avail of a complete or 90% coverage of tuition fees and living costs. Students can cover rent, food, phone bills, clothes, and other miscellaneous expenses.
- Tax benefits
If a gazetted financial institute provides an education loan, students can take education loan tax benefits under section 80 E of the Income-tax of India Act, 1961. It allows students to reduce the education loan interest rates. Also, students can apply for deductions for a total of 8 years.
- Easy application
With online banking facilities, students can easily apply for education loans and arrange their finances instead of depending on friends and family. Education loans also allow students to lessen financial burden on themselves or their parents.
Contact Us today to avail the special VidyaEdify tie-up with Financial partners who offer best in the market interest rates and simple process for loan application and approval.