Let’s agree. Education is a higher end expense where taking loans are more and more common now. Today, more than the parents, students themselves are willing to take up their own loan.
Here are the basic points you need to know about education loan:
Moratorium period: This varies from 6- 12 months. It refers to the time given to a student to find a job after completing his course in order to repay the loan.
Interest rates: Interest rates for an education loan starts from 8.30%. A girl student may get concession of 0.5% on education loans.
Loan tenure: Education loan gets a loan for 8-10 years, which also includes moratorium period.
Tax benefits: Tax benefits get applicable under Section 80E on the interest paid on your education loan is provided when a student starts repaying the education loan
Think of them while you apply for Higher Education Loan
Calculate your expenses: Do not forget to consider tuition free, travel, food, books and rent.
Credit score: It is very important to have a credit score of 750 or above so that you can get the desired loan amount.
Compare the interest rates: You should compare the interest rate of personal loans offered by various banks and then decide the best deal for you.
Apply online: Most banks allow submitting the personal loan application online with minimum documentation.
Stay informed for best choices!