Now days, gathering a certificate of degree from colleges is becoming a more expensive task. Students have the opportunity to get a help from the facility of education loan to fulfil their dreams of acquiring a degree, particularly if the savings of the family of students fall short. Students can pay back their loan after they get jobs. So the criteria of education loan and its process become very popular and helpful to students.
Eligibility to get education loan
Any students who would like to study their diploma, graduation, post graduation, Bio-technology, medicine, all streams of engineering, architecture and any other technical course can apply for education loan. Especially applicants who want to study in India should have the Indian nationality- and the age of the students should be in between of 18 years to 35 years. They should get the confirmation of their admission into any college or university which has the recognition from the Government or AICET or UCG. This recognition is mandatory to get an education loan. In some cases like vocational courses such as air-hostess, business management and aviation training courses are also coming into consideration.
Required documents for loan
The proof of identity of both applicant and his/her parent or co-applicant and address. Admission letter by the applicant regards his course from the college or university. A detailed estimations of cost to complete the course. Students academic marks memorandum or complete mark sheets are required. Students should give the detailed information of asserts, properties and liabilities of his parent/co-applicant. student and his parent or co-applicant needs to give the copy their PAN cards, Salary slips, IT returns documents and form 16. student and his parent or co-applicant needs to give the copy their PAN cards, Salary slips, IT returns documents and form 16 along with the complete loan application. Here the primary debtor should mentioned as the parent or co-applicant.
What will be covered under this loan
Exam, semester and library fees, the cost of books and accommodation, all charges, including travelling charge with a broad study, the cost of necessary technical equipment, the cost of a calculator, a laptop, all expenditures related to education are coming into this education loan.
How much amount is financed by education loan
Students can be financed the amount in between 4 lakhs to 15 lakhs with different rates of interest from different banks in India. For abroad or oversea studies student can offer an amount nearly Rs. 20 lakhs. For the amount of Rs. 4 lakhs loan only a co-applicant or parent is enough, for the amount of Rs. 4 lakhs to Rs. 7.5 lakhs one guarantor of third-party should needed for the amount more than Rs. 7.5 Lakhs the brief note and statement of assets of the parent and collateral will be submitted to the bank.
Tax benefits of education loan
Education loan has been getting a relief of tax payment on the repayment of interest for students up to the maximum time period of 8 years, according to the section of 80E of IT act.
- By Sruthi