Understanding Educational Loans

Education is expensive and Higher education is all the more expensive especially foreign education. Hence the need for education loan, which is a  financial aid given to meritorious but needy students for meeting the expenses of their higher education in India or abroad. In this article we shall explain education loan, what it is, process of getting education loan, repayment, tax benefits under section 80E.

Here is a good article which answers the following questions :

What is education loan?

Who gives out education loans?

What is covered under the loan?

What is eligibility criteria for an educational loan ?

What is the maximum amount lent by the bank?

What is the interest applicable on Educational loans?

Where can the loan be availed from ?

Does one need to provide a guarantor or any other kind of security?

Are there any other fees applicable while taking this loan?

What are the documents required while applying for the loan?

How much time does it take for education loan to be sanctioned?

How is the loan amount disbursed?

When does the repayment of the loan starts?

Are there any tax benefits for educational loans?

What is education loan subsidy scheme?

Is there a penalty for pre-payment?

Is there any documentation required post the sanction of the loan ?

If one is unable to pay loan?

What happens if one takes a break from studies?

What if one doesn’t get a job?

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