ALL YOU NEED TO

ALL YOU NEED TO KNOW ABOUT EDUCATION AND SKILL LOANS

Education is essential in today's date. The quality of education is necessary to lead a good and successful life. But, education is getting costlier day by day. Sometimes, there might be a shortage of funds despite all the investments. That is when an education loan is required.

An education loan covers the basic fee and other related expenses of the course that the child has taken up. Apart from that they also cover up for miscellaneous expenses and exams. The student himself can apply for this loan. This loan is offered to those students who aspire to study in India or abroad. The amount that is provided varies from one place to another. This loan covers up full-time courses, graduation and postgraduate programs.

There are not many documents that the student requires to submit before applying for an education loan. Students holding proper Indian citizenship can apply for the educational loans, and they should have secured the admission to a registered college which is recognized by a competent authority in India or Abroad. The student must be a high school pass out to be eligible to apply for the same.

The student is required to have additional documents such as admission letter of the institution, fee structure, and X, XII marksheets.  If in case the student is applying for a loan for any post-graduation program, then he must submit his graduation marksheet. The income documents like pay slip and ITR of the co-applicant is required in both the cases.

Banks finance 100% of the loan depending on the amount. There is no margin money required for loans up to 7 lakhs. The applicant must pay 5% of the amount needed by himself. However, for overseas the margin money goes up to 15%. The banks require collateral for an amount of about 7.5 lakh rupees. For loans above 4 lakhs to 7.5 lakhs, a third party is needed.

After the acceptance of the loan application, the banks disburse the amount to the institution directly.

The student makes the repayment of the loan. The repayment generally starts after the completion of the course for which the loan has been taken. But, it is mandatory to provide a relaxation period of a year after securing a job. The repayment can be made between the course of 5-7 years, but it can be extended beyond that.

Nowadays, there are some banks or private money lenders that approve loans for vocational courses for the span of time that is between 6 months to a year. Although, the span of time is less, these courses can be quite costly. National banks don't usually provide loans for such studies, but there are private Education Loan Providers in Hyderabad that do lend loans for these purposes.

Be it loans for general education or skills learning, and it is essential to take student loans in case the child and their parents cannot afford the cost. A good education be it science and management or arts and creativity; it is necessary to take up a good education for a successful career and future.