Study loan for higher studies in India
Education plays a major role in crafting the future of a person and the nation. A well educated generation can give a shinning future to the nation. After completing the higher secondary education a brand new academic venture kicks off.
For the students pursuing higher education, not only the course and institute will matter but also the method of funding. Higher education courses, especially those for professional training and in premium institutes, tend to come with a heavy expenditure on fees and accommodation. In such cases, taking a higher education loan in India is a good option.
Public and private sector banks and Non-BankingFinanceCompanies offer both education as well as vocational loans to students for regular degree as well as post-graduation courses by recognized universities in India. Apart from regular post-graduation courses the education loan scheme also cover courses such as medicine, engineering and diploma courses like nursing, business management, pilot training, etc.
The umbrella body for all lenders started considering a higher quantum of loans on course to course basis. Education loan portfolio of lending organizations has been rising steadily making it one of the priority sectors. The study loan for higher studies in India scheme covers basic education fees, purchase of books and laptops, examination and library charges and other expenses such as study tours and even lodging and boarding expenses. The lending institutes give the loan at a floating rate of interest. Higher studies no longer a burden for the middle class families. Nowadays the parents are opting for Higher Education Loan India and encouraging self-dependence of the child.
- An eligible candidate can get the loan within five to fifteen days from the lending organization. The co-borrower gets tax benefit. 1% service charge is applicable.
- The borrower is given a holiday/moratorium period of six months to one year after completion of the course of three months after getting the job; whichever is earlier before the repayment procedure starts.
The lending organizations reduce the interest rates if it is for the premium institutes like Indian Institute of Technology, Indian Institute of Management. The female candidates are also given .5 to 1% concession in the interest rate. Some NBFCs even provides the loan without any cap amount, a 100% disbursement of the loan amount as demanded by the deserved candidate. The only responsibility of the borrower is to pay back the loan amount to the lending organization with interest in time. The credit score of the borrower and the co-borrower is maintained and the collateral is kept safe in case of higher amounts. In case of loan amount within Rs. 4lakh even security is not required.
“Neither a borrower nor a lender be” William Shakespeare had written in Hamlet.
Trying to go by that, however, seems to be an impossible task. If one wants to pursue a premium course of aviation, engineering, medicine, management, etc., from the premium institutes one has to take the higher education loan to overcome the stumbling block.
Education Loan 
Leave a comment