Education is the need of every person, be it small or big because it provides empowerment to live a good life by understanding every aspect of its journey. The rising educational cost and the hefty fees of educational institutions make people very helpless but one option you can choose to easily finance your educational expenses is an educational loan. It provides several benefits to the students apart from paying the debt and fees for the education or the program you have chosen.
Here, in this blog, you will learn about educational loans and how to easily use them for various types of educational needs.
Educational Loan: What is it?
For funding your educational expenses according to the course you want to study, you can easily borrow an education loan from a reliable and trusted lender. There are many lenders and financial institutions that offer best-in-class educational loans to provide financial support to students at a very reasonable rate of interest. This helps you get a quality education to make your career bright. Let’s know the key features of an educational loan.
It provides tax advantages under section 80 (E) of the income tax rules.
This loan doesn’t need any type of security amount or collateral. There is a limitation for collateral-free loans up to a significant value, you need to check the complete details regarding your loan terms.
Premium Advantages of Borrowing an Educational Loan.
There are several types of advantages your educational loan provides based on the particular area of your residence and the amount of the loan. You can easily finance your education expenses by taking a personal loan in your area. For instance: if you have taken a personal loan in Noida, Delhi or Lucknow, you should know the benefits your bank offers.
Let’s know some of the interesting benefits of taking an educational loan.
- You will get tax free loan up to rupees 4 lakh and if you want to get a big loan, then you need to submit a collateral or security amount. However, the loan amount may differ from one bank to another. For instance: ICICI bank offers rupees 1 lakh to 50 lakh.
- You can get 100% financing benefits.
- Your education loan will cover everything in education from laptop expenses the travel one.
- The bank provides a very easy and flexible process for repayment of debts. It helps the students to repay debts on time without delay.
- You can ask your lender or the bank to extend your loan tenure so that you can easily pay your debts very easily.
- No collateral is needed up to the loan amount of rupees 4 lakh, beyond which you need to provide collateral assets to get a loan very easily.
- On behalf of the child, parents and siblings can easily apply for the loan.
Note: The children must be studying in any recognized educational institution in India, =
You will get your educational loan very effortlessly as the government provides several advantages to the person or student who wants to enhance their career.
Documents Needed to Apply for the Educational Loan
No matter whether you want to finance your education using an educational or personal loan in Noida, Gurgaon or Mumbai, you need to check the required documents for the same. Here we are providing the necessary documents to be submitted to your lender to get an educational loan with ease:
- Marksheet or the passing certificate of senior secondary examination,
- Your admission slip or the authenticated admission letter that you have got from your college or institution.
- Processing Fee for the loan amount.
- Valid KYC form of the student with his co-applicant or parents.
- Proof of income in various cases.
Summary
The educational loan helps students to make their careers bright by availing several advantages of the loan. You will get collateral-free and tax-free loans. You should check the eligibility, and loan terms with your lender.
