Many parents are stressed by rising school expenditures, especially if their child chooses to study overseas. Furthermore, the expense of education has risen dramatically in recent years. An MBA from a prestigious university or an Ivy League school in the United States might cost up to Rs 1.5 crore! When it comes to money and this important financial objective, parents are torn. However, even if their parents have student loan the financial means, today’s youth are growing more self-reliant and wish to pay for their own further education.
In either case, taking for an education loan is a wise decision and a popular one. Higher education generally comes with a hefty price tag. Thus, an education loan comes in useful. Attractive interest rates are available on education loans for graduation/postgraduate, diploma, and professional courses from banks. For your convenience, there is a brief overview covering the most crucial aspects of student loans.
Granted loan amount:
Course costs, as well as expenditures related to or associated with the education, such as living expenses, study equipment, and coursework material, travel, and other lifestyle expenses, are generally covered by education loans. The amount of the loan is determined by the course fee as well as the family’s total income.
Who is eligible to participate?
A student can apply for a loan with the help of his or her parents or guardians as co-applicants. Essentially, the incoming student is the primary borrower. A co-applicant might be a parent, spouse, or sibling. Students who intend to study in India or pursue higher education abroad can apply for this type of loan.
Important documents required:
Documents such as the institution’s entrance or acceptance letter, college price structure, and Class X, XII, and graduation (if applicable) mark sheets are required by the banks. The applicants’ income papers, such as bank statements, pay stubs, and tax returns, are also required. KYC papers are the most evident.
For the purposes of applying to colleges overseas, a pre-admission sanction of the loan can be obtained.
What is the procedure for repayment?
The student is responsible for repaying the loan. Repayment usually starts a year after the course ends or within six months of landing a job, whichever comes first. The bank charges a basic interest rate during the course term.
Percentage margin:
Margin money is a certain proportion of the total cost of schooling that the borrower must cover on his or her own, essentially out of pocket. The bank then pays the remaining money in the form of an education loan. This varies per bank and is determined by the university, loan amount, and other factors. So, before signing the paperwork, double-check the lender’s margin requirements.
Collateral or a guarantee
Both secured and unsecured education loans are available. Depending on the loan’s size, the bank may require a third-party guarantee or collateral. For loans over Rs 7.5 lakh, banks need collateral.
Collateral might be in the form of a bank-owned insurance policy. The policy’s premium can be deducted from the loan amount. You can also use a house or other property as collateral. Naturally, a secured loan or a loan backed by collateral may help you save money on interest.consolidation, the loan that the parent took out for the dependent student’s education cannot be included. Students may also benefit from assignment writing help in completing their assignments on time.
Benefits and concessions in taxation
The interest paid on the repayment is deductible under Section 80E of the Internal Revenue Code. This deduction is only available to persons who are paying interest on a loan for themselves, their spouses, or their children, or for a student for whom you are the legal guardian.
In addition, female students may be eligible for a reduced interest rate if they request it.
Conclusion:
As the expense of education continues to rise and the coronavirus epidemic has an impact on every household’s resource, students are looking for educational institutions that will fit into their budget. Rather than sacrificing school quality, they could take out an educational loan to bridge the financial difference. A good education is the foundation of a just society because educated human capital will lead to national growth while also taking care of the family, which is the driving force behind it. Make all your effort worthy by seeking reliable thesis writing services to produce thesis that help you fetch A+.
