Education Loan for a Bright Future

Pursuing Higher Education or Professional Course is like a dream come true for any student who wishes to make a great career in his or her life. But many times it happens that inspite of being talented, thousands of students don’t further their professional qualification which they had dearly wanted to study.

And most of the times financial constraint is the only reason. Cost of Higher Education is rapidly increasing. Due to the lack of proper financial support, students across India leave their educational pursuit of becoming a Doctor or an Engineer, a Scientist, MBA, etc.

But now you can easily overcome this situation. Get Education Loan for a Bright Future. Educational Loan can easily shape your career by furnishing timely and adequate financial support at the time when you want to take up Higher Education or a Professional Degree.

Sometimes it happens that due to lack of proper and correct knowledge students don’t go for taking Education Loan to further their Higher Education or else they are not aware of such a financial instrument which can help them monetarily to finance for their college fees and related costs of higher education.

As a matter of fact thousands of crores of rupees are being disbursed by Indian Banks with respect to education loan each year and the figure is registering an unprecedented increase year on year. This means that Education Loan is slowly but surely catching up with to fulfill the aspirations of Indian students.

Today we list down some of the important points regarding Education Loan so as to give you more clarity on this topic and help to remove doubts and misconceptions about such an important instrument like Education Loan.

Education Loan as such is a loan provided by Banks to students to help them to bear the cost incurred in pursuing their Higher Education or Professional Degree. Education loan helps a student to pay the college fee, hostel fees, cost of books and stationary and other kinds of related expenses as well.

The most important aspect of Education loan is the fact that the repayment of the loan does not start immediately after the disbursement of the loan amount to the student. The student has to pay the Loan EMI once the higher studies are completed and he or she starts working in a job. And that too generally after six months of doing service in a job or within a year after completing the course, whichever is earlier.

However, for some banks you do need to pay the interest part alone during the period of the completion of your higher studies. Once your course completes you start paying the regular EMIs (principal + interest).

So the student can first complete the studies, start doing a job, save certain amount for his future requirements and then can start repaying the loan. Even the interest does not made to be paid during the period in which he or she studies.

As far as interest rates are concerned, Education Loan have interest rates which are higher than home loan rates and but lower than personal loan rates. Again banks offer fixed interest rates as well as floating interest rates on Education Loan. So if your research says than during the next year or so, interest rates are going to fall down, it is better to go for floating interest rates.

Apart from these important facts, there is also no processing fee and no prepayment fees associated with an Education Loan. So if your bank asks for the processing fees or prepayment fees, you can definitely persuade the bank to waive such charges for you. However, banks do charge penalty if you transfer the loan to another bank.

Another important element of Education Loan is the fact that upto a certain amount which is generally upto Rs.400000/- (that can vary from bank to bank), the Education Loan is unsecured. Meaning that you do not have to submit a security against the loan amount, not even a guarantor. Banks usually fund 80 to 90 percent of the cost of education as Education Loan.

The most common expenses covered by Education Loan include college fees, hostel fees, examination fees, library and laboratory fees, cost of books and stationary, refundable deposit, cost of instruments, laptops, travel expenses and other expenses as well.

So we see that Education Loan can easily fulfill your dream of pursuing a professional course or can assist you in paying the costs of your Higher Education. You can easily take the details of Educational Loan from any of the Public or Private Sector Banks in India. Though Public Sector Banks are the leading providers of Education Loan in India you can go for any of the Banks in India according to your preferences and requirements for taking Educational Loan.

So Get Education Loan for a Bright Future!