Things you need to know about education loan

There is no future, either of an individual or of the nation, without a concrete education. Unfortunately education doesn’t come cheap these days. It is sad, that the world has moved onto cryptocurrency betting and Artificial Intelligence, yet our nation is struggling to provide affordable education. In a country like India, which is populated by the middle class, education expense is a serious matter of concern. The expenses start to prick especially during the higher studies. This is particularly where the education loans come into play.

Education loan is a very comprehensive subject of discussion. Figuring out the specifics in the matter could easily get confusing. The types of loan, requirement for approval, rate of interest and tenure, are only a few factors involved in the matter. Hence, if you are planning to take an education loan it is only natural to have multiple queries at the beginning.

Some commonly sort after education loans in India

It is really hard to figure out the appropriate loan for your specific purpose. Although according to general consensus, the following plans are highly preferred:

  • State Bank of India: Upto 10 lakhs ( domestic ) and 30 lakhs ( abroad ,) Interest rate – 11.75%
  • Central bank of India: Upto 10 lakhs ( domestic ) and 20 lakhs ( abroad, ) Interest rate – 10.25% + 2%
  • United bank of India: upto 10 lakhs ( domestic ) and 20 lakhs ( abroad, ) Interest rate – 10.25% + 2%

The benefits of education loan

The benefits of education loan are plenty. The upsides are so alluring, that sometimes individuals seek out loans despite of being in dire need of it. Simply to fetch he perks. When you self-finance your education, you will need to pay a bulk sum of money at once. A sum that could have otherwise stayed in your account and fetch you interest.

Additionally the repayment of principal amount starts only after the completion of education and that too through easy EMIs. The loaning institutions are often willing to take responsibility of paying our education fees and charges automatically if you ask them too. This means you need not concern yourself with payment hassles. Finally When you take an education loan it factors in external financial elements such as price inflation. This is a major insurance to your monetary planning that wouldn’t be available incase of a self-finance.