Education Loans or Student Loans or College Student Loans are designed to help a student, who aspires to enroll for higher studies in an institute, by paying all the education expenses on behalf of him/her. These expanses may include tuition fee, hostel fee, fee for book, food, uniforms, etc. For those, who are, just not lucky enough to get any kind of scholarships, student loan is the best way to pursue higher studies in any domestic and international universities or educational institutions. In India, education loan was first started by SBI in 1995.
Almost all the Public and Private banks offer various College Student Loans and run educational finance schemes for higher studies in international universities, which can be utilized by any student on easy terms. Once you show that you have secured admission in any nominated university or school, any bank would be more than happy to loan you for your studies. Investing on a student, whose future is bright, is considered a good move for the banks as they make a good return. On the other hand, Student Loans are a boon for students, who have secured admission in some of the nominated institutions of the world and wish to fly high with their dreams.
Some of the advantages of an Education Loans
Easy and Simple: Student Loan is very simple to apply for. If you have successfully passed the entrance test and secured admission in any nominated university, college or institute in India or abroad, any bank would love to finance you. You just need to submit your admission letter to the bank and complete few other formalities. The bank would directly transfer the entire amount for your tuition fee, hostel fee, fee for books, meals, travelling, etc to the concerned college or institutes.
Easy Repayment: Once you complete your course, banks give you enough time, which may be up to two years, to start the repayment procedures. One to two years, is a good time to search for jobs and you can pay back to bank own your own. This is the best thing about Education Loan. You don’t need to depend on your parents to repay the money.
Tax Benefits: Under80(e) of the Indian income tax act, there are some tax benefits, which you can enjoy while repaying the loan. Under this section, you can get deduction for the interest, you pay to the bank.