Student loans in India are offered by financial institutions and are available to students who have been admitted to recognized universities or colleges. These loans cover tuition fees, books, equipment, and living expenses, and usually have a repayment period of 5-7 years.
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Student loans in India are financial aids that help students who have been admitted to recognized universities or colleges. These loans cover various expenses including tuition fees, books, equipment, and living expenses. The Indian government has also started offering student loans at lower interest rates to make education more accessible to everyone.
The process usually involves filling out an application, submitting documents such as admission letters and academic records, and undergoing a credit check. The loan amount is then disbursed directly to the educational institution. The repayment period for these loans is usually around 5-7 years, but can vary depending on the lending institution.
“Education is the passport to the future, for tomorrow belongs to those who prepare for it today.” – Malcom X
Here are some interesting facts about student loans in India:
- The total education loan portfolio in India stood at INR 88,000 crore in 2020. (Source: The Economic Times)
- As of 2019, there were more than 30 banks and financial institutions in India that offered student loans. (Source: DataQuest)
- In 2018, the Indian government launched a scheme called “Prime Minister’s Special Scholarship Scheme” which offered loans to students from Jammu and Kashmir to pursue higher education. (Source: The Financial Express)
- The Indian Institute of Technology (IIT) Madras is the first institute in India to offer a loan to its students for entrepreneurial ventures. (Source: Business Today)
Below is a table comparing some of the available student loan options in India:
| Lender | Interest Rate | Maximum Loan Amount |
|---|---|---|
| State Bank of India | 8.95-10.45% | INR 1.5 crore |
| ICICI Bank | 11.25% | INR 50 lakh |
| HDFC Bank | 9.50-13.25% | INR 20 lakh |
| Axis Bank | 13.70% | INR 75 lakh |
In conclusion, student loans provide a way for students to achieve their dreams of higher education. The Indian government and various financial institutions have recognized the importance of education and have created programs to make it more accessible for everyone. As Malcom X once said, “Education is the passport to the future, for tomorrow belongs to those who prepare for it today.”
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The loan amount is directly paid to the institution/university at the start of the semester by the bank. Education Loans also include all other expenses, such as library fees, hostel fees, cost of books, laboratory fees etc., thus assuring that the student does not have to pay any expenses from their pocket.
Student loans, also known as education loans, are provided by public and private sector banks in India to cover financial obligations to study in colleges, either in India or abroad. The college and course you wish to undertake will determine the size of the loan. Loans below a certain amount won’t require a guarantor or security (up to Rs 7.5 lakh/$9400), while loans above this amount will require either collateral or a third-party guarantor. Repayment starts between 6 months to a year after completing the course with the possibility of extending it to 5-7 years and with some banks offering extension up to 15 years.
Education loans, also referred to as student loans, are best used to cover financial obligations to study in colleges, either in India or abroad. Loans are provided by public and private sector banks, and unlike other retail lending, education loans come with a moratorium period plus one to two years extension for repayment of loans.
Student loans can be repaid after the borrower has completed his/her educational course and finds employment thereafter. Most of the major banks in India, public as well as private, provide education loans to students. The college to which you wish to apply and the course you wish to undertake will determine the size of the loan.
Applying for a student loan in India varies according to the bank or entity you are applying for, but here are some standard features you can expect to see:
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Is taking a student loan worth it in India?
The reply will be: You will save on a lot of interest. Tax Benefits:You can avail of tax benefits under Section 80E of the Income Tax Act on the interest you pay on your educational loan. To be eligible for this deduction, your loan should be taken from an Indian scheduled bank or a gazetted financial institution.
How much loan can a student get in India?
As an answer to this: You can apply for a student loan without collateral if the loan amount is less than ₹7.5 lakh. However, if the borrowed amount exceeds this threshold, you will need to provide a third-party guarantor and collateral. For loans below ₹4 lakh, no guarantor or collateral is needed.
Is it easy to pay off student loans in India?
As education loans run for as long as 15 years, the interest liability can be much more than you could think of. But you can pay off the loan early to reduce interest payments. Paying off education loans before the scheduled close can be difficult. But if you plan your loan payment, you can do it.
How many years does it take to pay off student loans in India?
How many years do I have to repay my education loan? Almost all government banks grant an education loan repayment period of 12 years to 15 years excluding the moratorium period, although students can pay off their loans sooner if they can.
How to get a student loan in India?
Most Indian banks offer students loans for studying in India and abroad. Some banks also provide credit cards to their education loan customers. Banks typically will check on the following criteria to approve the student loan: The courses eligible for education loan are generally provided by the banks
Why do Indian banks offer education loans?
Leading Indian banks offer education loans to help students achieve their academic objectives. A school loan with a payback duration of up to 20 years starts at 7.00% per year in interest. Both in-country and out-of-country higher education can benefit from education loans.
Do education loans cover tuition fees in India?
Answer to this: Usually, education loans provided by various banks in India cover the over tuition fees of the course and other related expenses. Today, the education loans offered by some of the popular banks cover almost 100% education-related expenses of students. Here are some of the expenses covered by education loans in India: –
What is Education Loan Scheme?
The reply will be: The Reserve Bank of India (RBI) has directed all Scheduled Commercial Banks in India to adopt the Education loan scheme which aims to provide financial support to deserving students for pursuing higher education in India and abroad with affordable terms and conditions.
How to get a student loan in India?
The answer is: Most Indian banks offer students loans for studying in India and abroad. Some banks also provide credit cards to their education loan customers. Banks typically will check on the following criteria to approve the student loan: The courses eligible for education loan are generally provided by the banks
What is the interest rate for education loans in India?
Answer: The interest rates starts lowest at 6.85%, the maximum tenure of education loans is 15 years. Student loans can be repaid after the borrower has completed his/her educational course and finds employment thereafter. Most of the major banks in India, public as well as private, provide education loans to students.
Why do Indian banks offer education loans?
Leading Indian banks offer education loans to help students achieve their academic objectives. A school loan with a payback duration of up to 20 years starts at 7.00% per year in interest. Both in-country and out-of-country higher education can benefit from education loans.
What is Education Loan Scheme?
As an answer to this: The Reserve Bank of India (RBI) has directed all Scheduled Commercial Banks in India to adopt the Education loan scheme which aims to provide financial support to deserving students for pursuing higher education in India and abroad with affordable terms and conditions.