Quality education builds the pathway towards success and therefore, every individual should get equal opportunities to fulfill their academic ambitions. With the increasing cost of education, a large number of students in India are exploring financing options to fund their higher education. Due to this, education loans have gained massive popularity in recent times. With leading financial institutions, students with aspirations of higher education can avail customized educational loans for themselves. Hassle-free application process and quick loan approval are some of the advantages of availing an education loan with a reputed lending institution.
A wide range of educational courses are applicable for education loan to help deserving students follow their dream of pursuing higher education. So if you are a student wanting to pursue higher education, you can consider availing an education loan to fund the same.
The following educational courses are applicable for education loan in India:
- Undergraduate Degrees and Diplomas (B.A., B.Com, B.E, B.Ed, B.Sc., B.B.A, M.B.B.S, B.Tech, L.L.B., and others)
- Postgraduate Degrees and Diplomas (M.A, M.Com, M.Sc., M.Res., LLM, M.F.A, M.Ed, M.Phil, M.B.A, M.D., and others)
- Ph.D. courses/Miscellaneous Doctoral Programs
- Specialized Training Courses
- Certificate Courses (In Computers, Nursing, Teaching, job-oriented course, etc)
- Diploma in Engineering, Agriculture, Veterinary courses, any job-oriented course, etc)
- Degree / Diploma in Army, Navy or Air-Force Training courses
- Degree / Diploma in Aeronautics or any other relevant Pilot Training courses.
- Drone Training in renowned institutes.
- Vocational courses offered by government institutes
- Miscellaneous other courses run by the State Skill Mission or National Skill Development Corporation.
- Normally, short term online education courses pertaining to soft-skills, animation, English learning, catering, etc. are not applicable for education loans.
It is advisable to check with the financial institution whether or not that particular course is covered under education loan.
Some of the major benefits of education loans are mentioned below:
Instant loan approval – With leading financial institutions, the loan application can be approved instantly and applicants can receive the loan amount within a short span of time.
Loan tenure– The loan tenure plays a crucial role in defining the overall cost of borrowing. Moreover, a higher loan tenure can also reduce the repayment burden significantly. Applicants can opt for a loan tenure that best suits their needs
Flexible repayment / EMI options– The loan can be repaid easily through easy instalments. Borrowers can also calculate their EMI beforehand with the help of an online EMI calculator. This can help them plan their monthly expenses wisely.
Collateral-free loan – With prominent banks and NBFCs, students can avail a collateral-free education loan. Therefore, they won’t be required to pledge collateral while availing a education loan
Smart and digital e-KYC process– As a result of digitization, education loans can be availed easily through a hassle-free online application process. Paperless documentation has made the entire process more convenient.
Education loans help students boost their careers by giving them an opportunity to pursue learning courses and degrees which otherwise might have been unaffordable to them.
Before applying for an education loan, students should compare various loan offers provided by different lending institutions. This will allow them to avail an education loan that best suits their needs. Students should carefully make a note of the loan amount, loan process, interest rates, security, services, processing fees, documentation, and few other details while availing an education loan.
It is advisable that students should settle for an educational loan with low interest rate. This can decrease the overall cost of borrowing, thereby reducing the repayment burden. Students should also review the financial institution before availing a personal loan for education from it.
Lastly, students should make sure to read the terms and conditions of the loan agreement carefully before availing the education loan. This can help them avoid any inconvenience in the later stage.