Last Updated on January 5, 2022
Introduction: What is an education loan?
An education loan is a type of loan that can be used to pay for educational expenses. It is created with the intent of helping students continue their education by acquiring financial aid. One of the most common types of education loans is federal student loans.
Federal student loans are distributed by the government, with an interest rate set by Congress. However, not all students qualify for these loans, and some may need to go with private lending options instead.
Types of Education Loans:
Most students are familiar with the process of applying for student loans to pay for their education. But, there is much more than student loans.
- For those students that do not qualify for a federal loan, private loans may be the answer.
- These loans offer specific interest rates and repayment schedules depending on the individual.
- Another option is an education credit card. This works like any other credit card except the money spent goes towards your education instead of your purchase.
What are Student Loans?
- Student loans are a form of financing used by both borrowers and lenders to fund education.
- Other forms of financing include grants, scholarships, and family financing.
Education Loan Eligibility:
- In India, the education loan eligibility is determined by the annual income of the student.
- He or she can apply for an educational loan if they submit a guarantor form signed by their parents or spouse. There are different types of Education Loans are available in India.
Education Loan Interest Rate:
- Education loan interest rates vary according to the state where the student is studying.
- Banking companies also offer different interest rates on education loans, which are determined by their own banking policies.
- However, some of them are as low as around 8 percent which means that they will charge you less than INR 1,600 per year for an education loan taken for a period of 10 years.
SBI Education Loan:
SBI Education Loan is a new scheme launched by SBI on July 30, 2016. The scheme is designed to help customers avail education loans. The scheme offers customers the flexibility of availing up to Rs 1 Crore, for educational purposes. This loan meets the criteria set by the Government of India and is sanctioned at rates that are competitive to market rates of interest. Customers can repay their debt by availing of monthly installments over ten years.
HDFC Education Loan:
Why should you get an HDFC Education Loan? The answer is simple: it’s easy to apply for and a quick funding option! You can get a loan by applying online, in person, or over the phone. HDFC also has branches all around the country, so they’re always close when you need them. HDFC Education Loans are subject to credit approval and your exact rates may vary depending on your credit history.
The new tax law will help improve the student loan industry.
- This is a great opportunity for students to take advantage of, especially given the current state of higher education.
- The new law would lessen the financial burden that borrowers are burdened with after graduation by changing how much interest they are expected to pay on their loans.
- Unfortunately, this bill does not address any form of forgiveness for those who cannot find work in their desired field, which can often be an issue for recent graduates.