Education Loans In India

Education Loans In India

• Education loans in India are quite feasible and are curated in a way to help and support the financial needs of students seeking admission to national or international educational institutions. Here are some basic features of educational loans in India.
• An education loan is a financial support provided by banks or lending institutions to students who wish to pursue higher education. These loans cater to both domestic and international studies, featuring a flexible repayment periods of up to 20 years and competitive interest rates starting at 8.10% per annum.
• The application process, available through online and offline channels, requires essential documentation such as admission letters and academic record

Types of Education Loans in India

There are several different types of education loans offered by national - international banks that can be classified based on different factors given below:

1. Education Loans Based on Location:

• Domestic Education Loan - A domestic education loan is a type of education loan for students to pursue education in educational institutions based in India.
• Study Abroad Education Loan - A study abroad education loan is a type of education loan for students planning to pursue education in recognized foreign colleges and universities abroad.

2. Education Loans Based on the Course of Education:

• Undergraduate Education Loans - Undergraduate education loans are basically for the 3-5 years course that help students to pursue a Bachelor degree in their respective subject from a national or international college/university. To avail of this loan, the student must have passed his/her 12th (twelfth) grade.
• Post Graduate Education Loans - Graduate education loans are basically for the 2 (two) year-long courses that help students pursue a postgraduate degree in their respective subject from a national or international college/university. To avail of this loan, the student must be a Bachelor degree holder.

3. Education Loans Based on the Security of Collaterals and/or Guarantee

• Loan Against Deposits - An education loan against deposits can be availed against recurring deposits, fixed deposits or any other deposits acceptable to the Bank.
• Loan Against Property - An education loan against property can be availed against immovable assets such as residential property - a house, flat, or land agricultural land, etc.
• Loan Against Securities - An education loan against security can be availed against debentures, bonds, equity shares, etc.
• Third-Party Guarantee - An education loan against a third-party guarantee can be availed against a third party who can be relative, or friend

Career Education Loan

Career Education Loans are professional educational loans that help working professionals take admission to advanced professional courses at a national or international college/university to enhance their employment skills and opportunities. It can be said that it is for individuals who want to be admitted to an undergraduate career-oriented program at national or international trading and technical colleges.

List of Courses Covered under an Education Loan

• Professional, technical, and diploma courses offered by universities or institutions recognized by UGC, IMC, AICTE, government, AIBMS, or CMR as well as post-graduate courses leading to graduation.
• Regular degree or diploma programs offered by independent educational establishments like XLRI, NIFT, NID, ICWA, CA, CFA, IIM, IIT, and IISc.
• Regular degree or diploma programmers authorized by the Director General of Civil Aviation, Shipping, or another regulatory body, including pilot training, aeronautical, and more.
• Professional or technical courses focused on the workplace that are required for graduation, post-graduation, or certificate programs like MBA, MCA, or MS. These courses are offered by the Certified Public Accountant (CPA) in the USA or the Chartered Institute of Management Accountants (CIMA) in London.
• Loans for the improvement of skills.

Loans for Parents

Banks provide unsecured loans to the parents to meet the expenses borne by them which are related to their child’s education, such as tuition fees, living expenses, books, uniforms, transportation fares, etc. Not only parents but other adult relatives can also avail of the loans for parents to enroll their children in national or international colleges and universities.

Conclusion

An education loan can be a tremendous solution when it comes to pursuing higher education. The best suitable education loan not just gives an opportunity to study in the top national and international universities but also gives a start to your amazing educational journey.