Apply For Education Loan: Interest Rates & Requirements

Woman with books cheering

There is no dearth of capabilities, talent and skills in India. If honed at the right age, then we have seen time and again that people topping various exams. More so, the importance of education has seeped into smaller towns and villages as well, which is indeed a healthy and promising sign for India’s future.

  • In the recently concluded class 10th and 12th results across different states of the country, we are pleasantly surprised that girls have carved a niche for themselves. Importantly, most of them belong to smaller towns.
  • On the same lines, the civil administrative results have further proved a point for us that India is taking education seriously. Thanks to the seriousness and hard work, we have finally realized the importance and utility of education as it can transform the phase of the country for sure.Education Loan

Now, in order to mould the future of the students who have faced all sorts of challenges to make their mark, education loans gives them a respite, hope and a sense of belief that yes, with limited resources and means, they have a friend indeed who can actually help them in their endeavor of serving the country, their motherland, hometown, parents etc.

Students opting for various fields such as engineering, medicine, management etc looking to enroll themselves either in graduate or post graduate courses can apply for education loan.

The importance of education is so immense and thanks to the easy process of education loan, that students aren’t shying away from enrolling themselves in foreign universities as well. In short, a new dawn of hope, enthusiasm, excitement, zeal and aspirations has already set in. The country’s future can surely be termed to be bright considering the extent of seriousness which is seen amongst the students and it is only a matter of time before we see a developing country like India, becoming a fully developed country.

Rate of interest

For an education loan in India, the interest rate is 5%

No interest is levied for an education loan of upto 4 lakhs

For the students looking to study abroad, it goes higher at 15%

Education loan to be financed

Students looking for education loan to study in India can get upto 10 lakhs

Students dreaming to make their career in a foreign land can get upto 20 lakhs

Tax Rebate

Usually, the foremost thing which hovers in the mind of parents helping their children or spouses with education loan is how much the tax rebate, they are actually going to get with. Yes, according to Indian income tax act, a person is eligible for tax rebate under Section 80 (e) of Indian income tax act. Tax rebate is applicable based on higher period of time, i.e either right from the year(s), it is started to be paid “or” till the time the duration cycle of the loan is in effect.

Requirement for Education loan

  • You need to be of the age between 16 to 35 years
  • The course which you are going to undertake should be recognized by UGC/Govt./AICTE etc
  • In the event if your professional course demands you to take more than Rs. 7.5 lakh, then you need collateral security.
  • While applying for loan, there has to be a co-applicant who are mostly parents and in case of a married girl then they are spouse or Parent-in-law.