“Education is the most powerful weapon which you can use to change the world”- Nelson Mandela From buying toys to getting a new phone, as your child grows so do their demands. You fulfill their needs by putting aside your needs. When it comes to education you make sure to give them the best & quality education. However, with education inflation reaching its peak, somehow finances become a barrier. To beat such a situation, you could either start early and invest in a child education plan. However, if in the later stage, say for college education you require money, you could always go for a child education loan.
An education loan brings your child closer to their dreams. The cost of education is rising majorly, as for undergraduate courses the range starts somewhere from Rs. 5 lakhs. Whereas, in private colleges the range is double.
A high education loan eliminates the financial strain on your family savings. Additionally, it also eliminates the need to liquidate your investments if you have any like FDs or mutual funds. With an education loan, you get a tax rebate under Section 80E of the Income Tax Act 1961.
The best thing about an education loan is that the repayments can be made after your child’s study program is over. There is no need to worry about repaying the amount immediately unlike personal loans.
Education Loan covers a lot more than just tuition fees. For instance, living and traveling expenses, study material-related expenses, etc are covered. Thus, these non-fee expenses won’t create an additional financial burden on you or your child.
The repayment process of an education loan generally starts after the tenure of 12 months after the completion of either the course or 6 months after your employment. However, moratorium periods are given by different lenders as per their terms & conditions.
An education loan can be taken by the students under the guidance of their parents. There are two ways to get this loan either with collateral or without a collateral loan.
Nationality:
Courses:
Institutes:
Here are the mandatory documents that a student needs to provide to the banks while applying for a student loan:
Bottom line: Education is important to all, but with the rise in inflation, it is and will become difficult to manage its costs. It is necessary to have an action plan. An education loan can help your child’s future be fulfilled!
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