Educational loans-How To Apply Education loans and Procedure: Educational loans in India popularly known as student loans and it became a popular method for perusing higher education in India as well in other countries. Educational loans are very useful for those candidates who are going for higher education in fields of engineering, medical, management and science which has higher fees.Then the government of India assisted counterparts and encouraged the trend of Educational loans in India. Most of the large public sector banks and private sector banks are offering these educational loans to the eligible students.
Purpose for educational loan:
The aim of Educational Loan is providing financial support from the bank to eligible and meritorious students for pursuing higher education in India and abroad. The main importance is that every meritorious student should be provided with an opportunity to pursue education with the financial support from the government. Day by day Education loans are becoming very popular in India because of increasing fee structure for higher education.
Benefits of education loan:
A student can exempt the amount paid against the interest of the education loan according to the Indian income tax act. All most all public sector banks and private sector banks are offering these educational loans to the eligible students with free of interest.It is differ from other types of loans in other words the interest rate may be substantially lower and the repayment schedule is also different.
Categories of educational loans:
Public sectors banks are divided the educational loans into 2 categories. Students can barrow up to 4lakhs without any security or margin and another category is the amount between 4 lakhs to 7.5 lakhs need a third party guarantee with 5% margin. Another category loan is also available for abroad studies i.e.7 lakhs and above and these are usually sanctioned against fixed deposits.
Note: All the eligible candidates can apply for these Educational loans for their students.