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Higher Education loans for Students in India and Abroad, Check Eligibility

Higher Education is necessary to the develop individuals; it’s led a strong foundation for nation and country development. With the intention of avoiding financial stability for students who want to pursue such higher education, the central government has ordered banks to provide Higher Education loans to all eligible students. The government thinks it will be an investment in the development of human resources. That is why the process of granting loans has been simplified over the past decade.

Who are eligible for Higher Education loans?
    Education loans for Students
  • Indian national students who have been enrolled in educational institutions in India or abroad will be granted a loan term in term loan.
  • UGC / AICTE / Government-approved college or university, Degree and postgraduate courses are eligible for the students who have secured seats.
  • Those enrolled in degree or diploma courses in higher education institutes like IIT / IIM are also eligible.
  • The Directorate General of Civil Aviation or Shipping Department has aeronautical courses, pilot training and shipping courses also taken into consideration for educational loans.
  • Teacher training and Nursing courses approved by central or state governments are eligible for loans.
  • Those who enter distance courses and part time courses will not be granted education loans.
How much Higher Education loan are you given?
Tuition fees to pay students in educational institutions, the laboratory fee, the exam fee, the uniform, the books, the required tools, the computer (if not more than 20 percent of the tuition fees), the caution deposit / refundable deposit (not more than 10 percent of the tuition fees) take into consideration. Rs. Up to 50 thousand two-wheeler purchase is considered to be education loan. The cost of the project work and study tours required to complete the study can be added to the total cost.
Travel abroad can travel as a part of the debt to travel. If the student is in a different place without having to work with the family, the cost of the hostel expenses or their own will be considered as the cost to be educated.

Study in India is Rs. Up to Rs 10 lakh, while studying abroad Rs. Up to 30 lakh educational loans are sanctioned. These loans do not have any processing charges. Deposit of Rs 5 thousand from candidates applying for loans to study in abroad. The deposit is treated as their margin when making a loan. If the loan is not received after sanctioned for any reason, the deposit is taken into consideration as processing fee.

Documents to submit for Higher Education loans:
Let us learn about the necessary documents to apply for education loans. (Student / Mother / Father / Guarantee), PAN Card (student, mother / father), past six months Bank statement, Statements of past two years of IT returns, Statement of Assets and Liabilities, Income proof (play slips / Form 16) which must match the loan application. KYC address proof with respect to the ID, proof of address to add.

In some cases, after completing the study with education loan, need of another higher education for better job opportunities. In such cases, the same bank can apply for a second education loan. Such ones are treats as top-up loans. Repayment of the first loan is postponed until the completion of the second loan. After completion of the second course, two loans can be started at once.

When to pay back
a year after education completion or six months after the job is arranged. Arbitration are to be done before any of the two. If parents regularly pay interest on a regular basis, the rate of interest is reduced by 1%. Interest rates from 11.55 to 13.55 per cent will be charged on loan basis. These interest rates are not fixed. Vary as per The Reserve Bank orders time to time.
  • The amount of interest repayable on education loans is available under section 80 (E) and the Income Tax exemption is available. Interest reduction in 0.5% for loans used for female students in sanctioned loans after 2.3.2009 applies.
  • No margin is required up to four lakhs loan. If the amount required for education is less than four lakh, the amount of money can be obtained as a loan. If so, it will have to bear a 5 per cent education in India and 15 per cent margin for education in abroad.
  • Student, mother or father or guardian will be able to sign up documents for up to four lakh loan documents. No collateral security is required. More than seven and a half lakh loans require collateral security, such as land and buildings.
  • Higher Education loans up to seven and half lakhs should be repaid within a period of 5.7 years and above the liabilities within 12 years.