An education loan refers to a lump sum loaned to students by banks and other financial institutions to pay for their higher education in India and overseas. Apart from location, students avail of loans based on course and collateral. Undergraduate, postgraduate, and career development loans are all available. In addition, they are offered against third-party guarantees, securities, deposits, and property. These loans are paid by banks and financial institutions directly to the educational institutions on behalf of their borrowers.
Benefits of student loans
- Generous funding limits: Up to Rs.1 crore for international students and Rs.50 lakh for domestic students.
- Comprehensive financing: Enjoy 100% financing under specific conditions, covering tuition and additional expenses like travel and laptops.
- Forex advantage: Benefit from preferential forex rates for international disbursements.
- Parental partnership: Parents as joint borrowers facilitate accessibility to funds.
- Extended repayment tenure: Repay comfortably with a tenure of up to 15 years.
- Moratorium period: Transition into your career smoothly with a moratorium period of 6 months to 1-year post-course completion.
Tax advantages: Avail tax benefits for up to 8 years on interest payments.
