What is a student loan?
Students can apply for a loan for the maximum amount of 1 crore. The repayment period is generally up to 15 years, and interest rates generally start from 7.3%.
A student loan is a sum borrowed from the government or other financial institutions like banks to finance schooling, graduation or post-graduation courses, or other higher studies. Loans offered by the government are comparatively lower in interest. These can be paid after a specific period of time or after the students start earning a particular amount. This waiting period is called the moratorium period. This loan covers tuition fees, books, supplies, accommodation, travel, and other miscellaneous expenses.
Most Indian banks provide student loans for studying in India or abroad. Some banks provide the facility of credit cards to their respective education loan borrowers. Interest rates tend to be lower for student loans than other loans. There are certain requirements that need to be met to avail of student loans in India. Firstly the applicant is required to be an Indian citizen. There is also a limitation of age to avail of student loans. The age should be between 18-35 years.
Also, the applicant should have a good study record and have already secured admission to a recognized university/institution. The course selected by the applicant should also come under the loan requirements. As shared above, this loan can be availed for studies in India and abroad. Students can apply for a loan for the maximum amount of 1 crore. The repayment period is generally up to 15 years, and interest rates generally start from 7.3%.
The moratorium period is up to 1 year after the completion of the course or up to 6 months after securing the job. Students can avail of tax benefits for the interest paid under Section 80-E of the Income tax act. Applicants have to give some collateral to avail of student loans. It may be commercial property, fixed deposits, and insurance. Applicants can repay the amount through monthly installments.
Female students are given special concessional interest rates to promote their education. Applicants have to fill out the application form and have to submit their photograph with age proof, identity proof, address proof, signature proof, admission proof, latest mark sheet, and income proof of the co-applicant, along with other documents to avail of this loan.
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