The roots of education are bitter, but the fruit is sweet.
A good education leads the path to success. Quality education is what every parent looks after their children. However, nowadays, the cost of education has risen, and the fact that the price of studying at reputed institutions is already quite high. Hence, parents who want to provide their children with the best education, invest their money in FD (fixed deposit), Insurance plans, and Equity for the long term. However, sometimes in spite of planning so well, there are chances of deficit in finance. So an Education Loan could be an ideal solution for your dreams.
Features of an education loan:
- One can opt for an education loan if he wants to study in India or even abroad.
- The Rate of Interest can be as low as 6.6%, to even as high as 15.2%
- The guardian or parent of the student needs to be co-applicants for the loan application.
- The student can apply up to a certain amount (basically 7.5 lakhs)
- The maximum amount of loan varies from bank to bank
- If the applicant wants to study in India, the bank can grant 10 lakh worth of loan
- if the applicant intends to study abroad, the bank can give a loan of 20 lakh.
- Usually, the tenure for repayment of the loan is 5 to 7 years, but flexible repayment options are available. An applicant can also opt for more extended repayment periods that can go up to 10 to 15 years.
- The EMI of an education loan does not begin immediately or during the period. They provide one year time until the applicant gains the regular income.
- The interest on the education loan amount is eligible for tax rebate under section 80E of the Income Tax Act.