Education loans are available for both in-country and out-of-country higher education and are for undergraduate and postgraduate professional courses in both Indian and overseas colleges. Interest rates for an education loan with a payback term of up to 15 years start at 6.60 percent per year, and even though the eligibility for an education loan will be dependent on the student’s financial need, we arrange education loans from leading Indian banks to support students in achieving their academic goals.
- Bachelor’s Degree Programmes
- Postgraduate Courses
- Doctoral courses and PhDs
- Job-oriented courses
- Technical/diploma/professional courses
- Recognized institutions and government colleges
- Private institutes aided by government
- Professional institutions
- International colleges and universities
A list of the courses covered by education loans
- Graduation and Post-Graduation courses (technical/professional/diploma) conducted by approved universities or colleges under UGC/IMC/AICTE/government.
- Regular degree/diploma courses administered by autonomous institutions such as IIM/IIT, etc.
- Regular degree or diploma courses such as pilot training, aeronautical, shipping, and more approved by the Director-General of Civil Aviation/Shipping/other regulatory authority.
- Job oriented courses (professional/technical) for Graduation/Post Graduation/Diploma such as MBA/MCA/MS offered by reputed educational institutions, courses conducted by the Chartered Institute of Management Accountants (CIMA) – London or Certified Public Accountant (CPA) – USA.
- Loans for skill development.
List of Expenses Covered in Education Loan
- Tuition fees
- Hostel fees
- Travel expenses passage money for students studying abroad
- Insurance premium
- Cost of books/equipment/instruments/uniform
- Examination/laboratory/library fees
- Cost of a computer/laptop required for course completion
- Caution deposit, building fund/refundable deposit supported by institution bills/receipts
- Any other expense required to complete the course such as study tours/thesis/project work
Features & Benefits of Study Loan
- Loan financing up to Rs.1 crore available.
- Loan repayment tenure up to 15 years.
- Get Education loans for studies in India and abroad.
- Some lenders offer loan disbursal before applying for a Visa.
- Door-step service to collect required documents.
- Children of the bank’s employees enjoy preferential rates at several banks.
- Certain banks offer concessional interest rates to female students.
- Enjoy a moratorium period of up to 1 year after course completion. During this period, you do not have to make payments on the loan.
- Enjoy tax benefits up to 8 years on the interest paid.
Tax Benefits on Education Loan
You may deduct the interest you pay on your student loans under Section 80E of the Income Tax Act of 1961. It is only available to individual borrowers for higher education and is only available to students. The deduction is valid for all academic disciplines, both domestically and overseas. Both traditional and vocational courses are affected.
Please be aware that the tax deduction only applies to the interest component of the EMI and not the principle amount. There is no cap on the total number of times you can use this advantage, though. You must get a statement from your bank or financial institution that separates your principle and interest in order to be eligible for this benefit.
A list of the paperwork needed for an education loan
Here is an indicative list of documents that most lenders ask:
- Admission letter from the educational institution
- Mark sheets (previous education – school/college)
- Age proof
- ID proof
- Address proof
- Signature proof
- Salary slips
- Recent bank account statements
- ITR with the income computation
- Audited balance sheet
- Recent bank statements
- Proof of turnover (service tax return/sales receipt)
- Completed application form with signature
- Latest passport size photographs
- Appropriate Visa for studies abroad
How to Apply for Education Loan
Applying for a student loan can be done in a few different ways:
Apply Online: There are two methods for doing so.
The first is a simple online application form that you fill out, attach the required paperwork, and submit.
In the second, you apply by submitting all the necessary information, and the lender contacts you to go through the loan’s terms before moving forward with the application.
