Education Loan: If you want to take admission to a good college for higher education, but your pocket does not allow it due to expensive fees, then you can take an education loan from any bank. For this, you have to apply. But before applying for an education loan, it is important to keep some important things in mind.
fix education loan
Apart from fees, money is also spent on things like hostels, laptops, and books during higher education, so the loan amount should be enough to cover all these expenses. Generally, the maximum loan available for studies in the country is Rs 10 lakh and for studies abroad up to Rs 20 lakh. But in big institutes like IIT, IIM and ISB you can get more loans for studies. In such a situation, you must compare the education loans offered by various financial institutions for your course.
Use single window platform for education loan
It would be better if you apply to one of the banks and wait for the approval for the single window platform of education loan- Pradhan Mantri Vidya Lakshmi Karyakram (PMVLK). Here you can apply to three banks simultaneously on one application. There are 40 banks registered here.
Create applicant with parents
Keeping in view the rising defaults and NPAs in education loans, banks now want to ensure that the loan is repaid at the time of loan approval. So if you apply with a parent or guardian as a co-applicant, your chances of getting approved increase.
How much time do you get to repay the loan?
If you take an education loan, then you have to start repaying the loan after 1 year of completion of studies. At the same time, the interest on an education loan starts from the time of taking the loan. Also, after the completion of studies, a time period of 15 years is given to repay the education loan.
Try to take a loan in installments
One good thing with education loans is that banks charge interest only on the amount that is disbursed. In many institutes and universities, the payment is done on a semester basis. Therefore, instead of paying the full fee, choose a loan in installments.
Do not ignore tax benefits
Tax exemption can be availed on education loans under section 80E (80E). A tax deduction is offered on education loans only for a period of eight years.