Funding Your Academic Goals
Education is one of the most significant investments for a bright future. Whether you are planning to study in India or at a prestigious international university, an education loan can help manage costs without putting a strain on your family’s finances.
What Costs Are Covered?
A comprehensive education loan in India covers more than just tuition fees. Most plans include:
- Tuition Fees: Paid directly to the institution.
- Hostel and Living Expenses: Crucial for international study.
- Books, Equipment, and Travel: Including laptops, uniforms, and flight tickets for overseas programs.
- Examination and Library Fees.
Loan Amount and Collateral Requirements
In India, for loans up to ₹4 lakh, no collateral or third-party guarantee is generally required. For loans between ₹4 lakh and ₹7.5 lakh, a third-party guarantee is typically needed. For amounts higher than ₹7.5 lakh, banks usually require tangible collateral security.
Moratorium and Repayment
A significant highlight of education loans is the moratorium period, which is the duration of the course plus 6 to 12 months after completion. Repayment starts only after this period, giving students time to find employment.
Tax Benefits under Section 80E
Borrowers can claim a tax deduction for the interest paid on an education loan under Section 80E of the Income Tax Act. This deduction is available for up to 8 years or until the interest is fully paid, whichever is earlier.
Top Education Loan Lenders
- State Bank of India (Global Ed-Vantage Scheme)
- Bank of Baroda (Baroda Scholar Scheme)
- IDFC FIRST Bank
- ICICI Bank (Education Loan for Foreign Education)
