You borrow money to finance your higher education or college fees. Payments are often deferred while you are in college, and for a six-month grace period after graduation called moratorium period.
Many banks have special education loan schemes for meritorious and needy students. The fee for the course is normally disbursed to the college/institute directly by the bank.
While you apply for an education loan, the bank will verify the tenure of the course and determine its total cost. Every year, you are required to submit a form to the bank which gives the details of the money required, after which the bank directly disburses the loan to the college/ institute.
You can preserve your savings and still provide for the costly education of your children. You don't have to break your Fixed Deposits.
Banks offer education loans at lucrative interest rates. No collateral for education loans up to INR 7.5 Lakhs.
You don't have to repay the loan until you finish your studies. Repayment is after completion of the course, or getting a job.
You can claim a tax deduction on the interest portion of your educational loan. Tax deduction for a period of 8 years, after you start paying back the educational loan.
You should be an Indian citizen.
You should fall in the age bracket defined by the respective bank.
You need to apply to a recognized college/institution.
You need to apply for the loan with a co-applicant who has a regular source of income.
You need a minimum CIBIL score of 700 for the final sanction of your education loan.
You need a loan application form and passport sized photographs.
Letter of admission received from the college/institution needs to be presented to the bank.
You need mark sheets starting from class 10th to the last qualifying exam you have cleared.
You need a declaration/affidavit to confirm no other loan has been availed.
You need an identity and an address proof.
The co borrower (Your Parents or the third party Guarantor) has to show proof of income (salary slips) as well as the income tax statements of the past 2 years.
29 April 2016, Friday
You had a great college life. You had everything you needed except money. You had to beg your parents for pocket money. Now you have just got your first job and you have your own money. You just want to buy everything you ever wanted. Designer clothes, sneakers, a fast bike and the latest smart phon...
19 August 2015, Wednesday
You must have seen an advertisement on television showing how important a Cibil score can be to your financial well being. A big businessman is kept waiting at a bank as he applies for a loan. A salaried employee shows off his Cibil score of 750. He is immediately called by the bank manager and hi...
11 August 2015, Tuesday
You have been paying your home loan EMI’s regularly each month. After a few years you check the amount of home loan principal left which you have to repay. There is a nasty surprise waiting..... Your pending home loan principal amount is almost the same as when you availed the home loan.S...
18 July 2012, Wednesday
Formalities for a health insurance claim You can make a claim under a Health insurance policy in two ways : On a Cashless basis and A Reimbursement Claim On a Cashless basis : For a claim on cashless basis, your treatment must be only at a network hospital of the Third Party Administrator (TP...
14 March 2014, Friday
As the name suggests ELSS invests the whole corpus in equities. Proportions as high as 80-90% of equities are found in an Equity Linked Savings Schemes. It is a special kind of mutual fund that qualifies for tax benefits. Basically Equity Linked Savings Scheme is a mutual fund with a lock in peri...
07 January 2014, Tuesday
One of the most common reason for family feuds in India as in the rest of the World is faulty estate planning. Estate planning is a neglected topic in India mainly because of the emotions attached to it. A common reason people neglect to make a will or indulge in estate planning in their younger y...