Q. What bachelor courses am I eligible for an education loan for?
A. You can apply for an education loan for recognised graduate , postgraduate, doctorate, and professional courses.
Q. What are the benefits of getting a student loan?
A. Yes, you may obtain a tax credit on your interest payments on student loans. The Income Tax Act of 1961's Sections 80C and 80E will apply.
Q. When will I be allowed to start making payments on my loan?
A. The payback time will differ depending on the lender, but it will often begin after you finish your studies or a few months after you begin working. You will be placed on a moratorium upon the end of your course.
Q. Is there any kind of security required?
A. Typically, collateral is only required for school loans over a certain amount, which varies by bank.
Q. Is it possible to add a co-applicant to my loan?
A. A co-applicant is required by several banks for an educational loan. A parent, guardian, spouse, or parent-in-law can all be considered.
Q. For the same level course in India and overseas, will I receive the same amount of money on my education loan?
A. No, education loans for courses in India are usually not as generous as those for comparable level courses abroad. Higher sums are available for education loans for courses taken outside of India, as fees and other expenditures may be higher overseas than in India (which also depends on the educational institution).
Q. Is it possible to acquire a student loan without pledging any assets as security?
A. Almost all bank and other lender education loans need collateral, which might include fixed deposits, property, shares, bonds, and other assets. You can get a student loan even if you don't have any collateral.
Q. Is the loan available in the currency of the country where the course is being taken?
A. Education loans for courses overseas are often paid straight to the educational institution in the country's local currency.
Q. Would the education loan moratorium be renewed if I wanted to take a vacation from my studies?
A. The length of the school loan moratorium period varies per lender. However, it is usually for a year or until the borrower finds work or completes the course, whichever comes first. If you decide to take a sabbatical and request a moratorium extension, the bank will determine whether or not to grant it, so it's a good idea to discuss it with your lender.
Q. Can NRIs obtain education loans from Indian banks?
A. One of the eligibility criteria for education loans granted by Indian banks and other financial institutions is that the individual be an Indian citizen. This means that any student who is an Indian citizen can apply for and get a loan from an Indian lender. Collateral or documents that can be used as collateral should be enforceable in India.
Q. What factors do lenders evaluate when approving a loan?
A. When approving a loan, lenders evaluate the following factors:
The course and institute you select
The amount you'll require
Your academic achievements
Your family's repayment capacity
Assets belonging to the family
Q. What happens if I drop out of the course and find work during the grace period?
A. If you decide to leave your degree in the middle, you must begin repaying your loan as soon as you find work.
Q. Can I transfer my student loan to a bank that offers cheaper interest rates?
A. You can transfer your student loan from one bank to another. Your present bank, on the other hand, may charge you a refinance fee. As a result, before changing the loan, all features of the existing and new banks must be considered.
Q. Do all college loans cover the entire cost of education?
A. Yes, education loans cover the entire cost of education. Full coverage, on the other hand, may be limited to expenses up to a particular amount. If the expenses exceed the limit, lenders have a buffer.
Q. What other expenses are covered by student loans?
A. The following are some of the additional costs paid by student loans:
Fees for the hostel
Fees for exams, laboratories, and libraries
Books, uniforms, projects, and other expenses
Expenses associated with studying abroad
Deposits that the educational institution requires
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Updated on Dec 12 ,2022
Updated on Dec 12 ,2022
Updated on Apr 05 ,2022