What is education loan in simple words?

What is education loan in simple words?

An education loan is a loan that students apply to meet the financial requirements to complete their course. Many banks and NBFCs in India offer education loans at competitive rates to help educate the upcoming innovators and leaders.

What are education loans?

Education loans are basically a form of monetary assistance availed by students to meet the expenses associated with their studies. Education loans can be taken by means of funding, scholarships, financing and rewards, and are granted in cash, which has to be repaid to the lender along with a rate of interest.

What are the rules for education loan?

The applicant should have a secured admission in a college or university affiliated by UGC/AICTE/Govt. etc. Students pursuing full-time courses need to have a co-applicant who can be either parent/guardian or spouse/parent-in-law (in case of married candidates).

Is education loan a good idea?

In either case, an education loan is a good idea and a commonly sought after resort. Pursuing higher studies usually involves high fees and an education loan comes in handy at this point. Banks provide education loans for graduation/PG, diploma or professional courses, at attractive interest rates.

Is getting education loan easy?

Easily available: Education loans are widely and easily available. In fact, they are a priority product in all banks as per the RBI’s guidelines. Varied loan amounts: Banks can offer loans anywhere between Rs. 2 lakhs and Rs.

What happens if education loan is not paid?

If you are unable to make repayment on your education loan, then you will receive notices and warnings from the lender. If you fail to comply with the same, then the lender is legally entitled to the assets you mortgaged. Your property or asset can be auctioned or used by the lender.

Is student loan good or bad?

Unlike forms of “bad debt” like auto loans and credit cards, common financial advice has often put student debt into the “good debt” category. Like the other major form of good debt, mortgages, student debt pays for something that doesn’t typically lose value over time.

Is education loan hard to get?

How much education loan can I get on 20000 salary?

Consider – how much personal loan can I get on a 20,000 salary? Sans any other financial obligations, you can expect to be eligible for a loan of Rs. 5,40,000.

What makes you eligible for an educational loan?

What Makes You Eligible for an Educational Loan? Factors taken into account:. The academic background and qualifications of the student. The track record of marks,… Courses eligible for Educational Loans:. Banks offer loans for students to study almost anything provided that the… Eligible

How do I get an educational loan?

To get a student loan as part of a government program, visit your school’s financial aid office. Let them know that you’d like to borrow, and they’ll tell you what steps to take. You’ll have to fill out a FAFSA form, which will determine what type of aid you’re eligible for.

Should you take an education loan?

Taking an education loan helps you in building a good credit score as this is the first loan in a person’s life. If you repay the loan on time without any defaults then it also makes easier for you to get home loan, car loan, etc., in future.

What is an educational loan?

An education loan is a sum of money borrowed to finance college or other school-related expenses. Payments are often deferred while students are in school and for a six-month grace period after graduation.