शिक्षा ऋण के विभिन्न प्रकार है ?

There is no doubt that education is of prime importance not only in India but globally as well. It is one of the sole factors that help us become literate, well-mannered and responsible individuals personally, socially, and professionally. Though a basic education is generally accessible, people prefer quality education to elevate their educational qualifications to get high-paying jobs.

This desire for quality education is made possible with education loans.

What is an Education Loan?

For aspiring students who want to acquire quality education from reputed educational institutions, an educational loan is the best way to achieve it. It is basically a credit facility provided by banks to help students get admission to renowned colleges or universities in India and abroad in order to pursue their desired education. With the help of an education loan, both students and parents can pay for the tuition fees and other related expenses to be borne in the admission process. An education loan is offered in form of funding, scholarships, financing, and rewards, and even sometimes granted in cash.

Expenses Covered under an Education Loan

Generally, the tuition fees payable to the respective university or college inclusive of the laboratory fees and examination fees as well are covered under every education loan provided by the bank. In addition to this, an education loan can pay for the purchase of books, laptops, uniforms (if any), and other miscellaneous items along with the caution deposit and the student’s travel expenses. However, all these expenses should not exceed 20% (twenty percent) of the entire loan amount. Depending on the loan provider bank, education loans may also include college or university projects, student tours charge, and other expenses related to thesis and research that needs to be completed before finishing the opted course.

Education Loans in India

Education loans in India are quite feasible and are curated in a way to help and support the financial needs of students seeking admission to national or international educational institutions. Here are some basic features of educational loans in India:

• Banks may offer an average education loan of up to Rs.1,25,00,000 (One crore twenty five lacs) and up to Rs.1,50,00,000 (one crore fifty lacs) for students applying for domestic and international colleges or universities respectively.
• Under certain circumstances and conditions, 100% (hundred percent) financing is also available and a margin of 0 % (zero percent) to 15% (fifteen percent) is applicable otherwise.
• In the education loan process, relative, or friend can be a guarantor, if required.
• Repayment of education loan will start after 12 months from the date of completion of course
• The range of interest rate on education loans is approximately between 8 % to 11.50 % depending on scheme, Loan amount and institutions decided by the loan provider banks.
• Students are given ample time with flexible terms and conditions to repay the loan once they complete their education.

Types of Education Loans in India

There are several different types of education loans offered by national - international banks that can be classified based on different factors given below:

Education Loans Based on Location:

• Domestic Education Loan - A domestic education loan is a type of education loan for students to pursue education in educational institutions based in India.
• Study Abroad Education Loan - A study abroad education loan is a type of education loan for students planning to pursue education in recognized foreign colleges and universities abroad.

Education Loans Based on the Course of Education:

• Undergraduate Education Loans - Undergraduate education loans are basically for the 3-5 years course that help students to pursue a Bachelor degree in their respective subject from a national or international college/university. To avail of this loan, the student must have passed his/her 12th (twelfth) grade.
• Post Graduate Education Loans - Graduate education loans are basically for the 2 (two) year-long courses that help students pursue a postgraduate degree in their respective subject from a national or international college/university. To avail of this loan, the student must be a Bachelor degree holder.

Education Loans Based on the Security of Collaterals and/or Guarantee

• Loan Against Deposits - An education loan against deposits can be availed against recurring deposits, fixed deposits or any other deposits acceptable to the Bank.
• Loan Against Property - An education loan against property can be availed against immovable assets such as residential property - a house, flat, or land /agricultural land, etc.
• Loan Against Securities - An education loan against security can be availed against debentures, bonds, equity shares, etc.
• Third-Party Guarantee - An education loan against a third-party guarantee can be availed against a third party who can be relative, or friend

Career Education Loan

Career Education Loans are professional educational loans that help working professionals take admission to advanced professional courses at a national or international college/university to enhance their employment skills and opportunities. It can be said that it is for individuals who want to be admitted to an undergraduate career-oriented program at national or international trading and technical colleges.

Loans for Parents

Banks provide unsecured loans to the parents to meet the expenses borne by them which are related to their child’s education, such as tuition fees, living expenses, books, uniforms, transportation fares, etc. Not only parents but other adult relatives can also avail of the loans for parents to enroll their children in national or international colleges and universities.

Conclusion

An education loan can be a tremendous solution when it comes to pursuing higher education. The best suitable education loan not just gives an opportunity to study in the top national and international universities but also gives a start to your amazing educational journey.