Education helps an individual to rise higher in life, the word education has been derived from the Latin word “ed-u-care” which means “to raise”. Over years, right from The Mahatma’s and The Guru’s, what has remained common is the impartation of knowledge and skills to others. However, unlike ancient times, education is no longer free.
Most of the students from India are highly skilled and knowledgeable. But due to money related issues, they skills remain unpolished and they are incapable of taking their studies further. To help such students, the concept of loan for education in India was introduced.
An Education loan is a loan that provides the financial backing to the student for higher education. A student who can’t afford fees and other expenses for study after 10+2 may get an education loan on certain terms and conditions of the bank.
How to get an Education Loan
Certain documentation is required to apply for an education loan in India :
- The first and foremost requirement is that your course should be eligible for a loan. Banks provide education loans for graduation course, post-graduation courses, and professional courses. The courses approved by UGC/ Government or AICTE are also eligible for education loans.
- Documents such as identity proof, course details, fee structure, and academics mark sheets are some more documents needed.
Expenses included
- Fees are payable to the college/school/hostel.
- Examination/ Library/laboratory fees.
- Purchase of books, equipment etc.
- Purchase of computers if necessary for studies.
- Caution deposit/ Refundable Deposit (maximum 10% of tuition fee for entire course).
- Cost of two-wheelers up to Rs 50000.
- Any other expense which banks find necessary for studies.
Tax benefits
One can avail tax benefits u/s 80E for interest paid by him for education loan from the year he starts paying interest and for the next 7 immediately succeeding assessment year i.e. one can enjoy a tax benefit for 8 years for interest paid on education loan for himself or spouse or children.
Leading Education Loan Providers (Click to Apply) |
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|---|---|---|---|
| HDFC Bank Education Loan | BOI Education Loan | Private Bank Education Loan | Other Banks |
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