Whether it is for buying a house or a car or pursuing higher studies, loans are common today. With college fees growing every year, many have no choice but to opt for Education Loans India. For undergraduate engineering courses, the fees could be Rs 5-10 lakh, while for a five-year medical course at a private college, this could go up to Rs 50 lakh. For post-graduate courses such as those on managing, fees could be more than Rs 10 lakh.
Circumstances for approving a loan
Though approving a loan, a financier will check if a student has actually safe admission to a course, the quality of the college and the course (whether it is recognized by the University Grants Instruction or the All India Council for Technical Education), if the student has the skill to secure an correct job after the course and the credit history of the co-applicant or guarantor. In case the loan is backed by collateral such as property (in case of high-ticket loans), lenders also consider the value of the property.
Under education loans, fees for guidance, examinations, library, etc, are paid directly to colleges.
after the achievement of the course, those taking education loans get a holdup of six months to a year, before they start refunding. In the case of an business course, students get four years (the course period), along with an extra year, to start refunding. The refund has to start a year after the course is ended, even if the student doesn’t succeed to secure a job. Once the refund starts, the borrower can avail of profits under Section 80-E of the Income-Tax Act.
Why should you take a loan?
Though a Education Loans India might not be enough to meet the whole cost of an educational course, it could be a great help.
Generally, it is the first loan a student benefits of and, therefore, by refunding on time, students can build good credit histories; this will be of huge help when they seek to avail of auto loans, home loans, credit cards, etc
In the case of studies abroad, scholars must consider extra bases of funding such as allowances or part-time jobs, as the funds required are quite high .