Is Education loan beneficial? Is it good for higher education?
anjalisingh last edited by ftForumMod
Can anyone tell me is education loan beneficial or not for higher education? Will I be able to take the education loan?What are the different education loan schemes available in India? I am willing to take a loan for further study but confused.
Nandita last edited by
@anjalisingh Higher education has become very costly these days. Also, other living expenses have increased over the years. Looking at the sky rocketing cost of courses in India or abroad, it is not easy for parents to bear the entire cost. So, education loan seems to rescue us from this situation.
Therefore, I feel taking some education loan from a reputed bank or institution is good.
Ishu last edited by
@anjalisingh I feel if one doesn't have the surplus money to afford education in a good institute, then availing an education loan can be a good idea. But, be careful to go for only renowned loan providers.
Education Loan: Important points to consider
- An education loan covers your basic course fee and some other expenses as well.
- As a student you become the main borrower. Your parent, spouse or sibling can be your co-applicant. You need to confirm this from bank/institution.
- You can take an education loan for full-time, part-time or even a vocational course.
- This can be for graduation or post graduation course in India or abroad.
- There may not be an upper age limit for applying an education loan. However, some banks may pose certain restrictions in this regard.
- You or your parents (as applicable) also get tax benefits under Section 80E of The Income Tax Act subject to certain conditions.
Remember, there are many fake companies also luring students with attractive loan offers. So, be cautious and do thorough research before taking an education loan.
Aggarwalshipra last edited by
@Ishu the points you have explained is of real value. Taking a education loan is not an issue, you can definitely go for that but you have to check the above-mentioned points as whether you are the main borrower or not else you parents will be the borrower and the bank will try and make it a personal loan rather an education loan as the rate of interest in personal loan is high.
Also, nowadays education loans are not taken frequently because most of the times the students are unable to get a job due to which the liability ultimately falls on parents. So, don't be confused if you really need a loan and you think can manage to repay it to the bank then you should definitely go for it.
Ishu last edited by Ishu
@Aggarwalshipra Hi, I agree to you. But, you know the cost of higher education is sky-rocketing these days. It's not possible for a common man to afford paying high fees and enroll children in top reputed institutes. Few are lucky enough to earn scholarships. While others have to struggle hard to get admissions in good colleges or get satisfied with a basic one.
This is when an education loan from a good institution not charging much high interest can prove to be helpful. What to do you think?
Ramesh1998 last edited by ftForumMod
Education loans have made the pursuit of academic courses easier, without burdening parent or guardians with liabilities, that we should be bearing.
But, before going with the procedure one must be clear about the Eligibility Criteria for getting an education loan in India:
- The student should be an Indian National.
- Age of the Student – 18 to 35 years (you need to check with respective bank).
- Confirmed admission in a college/university in India by the UGC/Government/AICTE/Appropriate Authority.
- Scored minimum 60% (50% for SC/STs) in the examination for admission to graduation courses.
Anmol last edited by
@Ramesh1998 Hi, I didn't know there's an age criteria also for availing student loan. What if someone of higher age wishes to go for further studies? Won't he get any student loan then? I don't think that's the correct way to decide student loan eligibility. Education is not restricted with age. One can go for it when comfortable to do so.
Aggarwalshipra last edited by
@Ishu Yes Very true, the colleges who ranks higher charge so much fee. But with there are very few banks who are charging less rate of interest otherwise almost all are same in the grade and hardly a difference of 1 % is there so you have to work really hard to find that.
stephbaker last edited by
Education loan is a boon for people who are really interested in pursuing further education but lack the required resources.