1) What is Education Loan?
The loan which is taken to cover the fees and expenses of higher studies is known as education loan. It covers the cost of tuition and course fee, exam fees, deposits and costs of books, hostel, etc. Most of the reputed institutions charge hefty fees for admission which can’t be afforded by many students and their family. Education loans helps that families to give their child the best education irrespective of the cost.
2) Who can apply for Education loan in India?
There are few eligibility criteria to apply education loan. Some of them are:
- The age of applicant should be above 18 years.
- He/she should be the citizen of India.
- More than 50% marks secured in higher studies and graduation.
- Admission in recognized college or institution for graduate or postgraduate.
3) What are the documents required for applying Education Loan in India?
he following documents are required to apply for education loan in India:
- Bank and Income statement
- Copy of the admission letter and fee schedule
- Marksheets of higher and senior secondary school
- Identity, age and address proof
- Fully filled Education Loan form
- Passport size photographs of applicant and co-applicants.
4) When does the repayment of Education loan starts?
We have the confusion most of the time that we have to start the EMI of education loan as soon as we get the amount disbursed. But this is not the case. In Education loan the repayment starts after the completion of course for which the loan has been taken. There is a moratorium period in education loan which gives some extra time after the completion of course to start the repayment. Generally, moratorium period is 1 year after the course term. This helps students to secure a job and regular income after studies to repay the loan back.
5) How is Education Loan Interest Rate decided?
There is a fierce competition between the banks and NBFCs who provide education loan in India which impact the interest rates on them. The interest rate depends on the factors like the reputation college of the student for which he is taking loan, destination, course applied for, the loan amount, loan tenure, etc.
There are two types of interest rate applied on loans, i.e., Floating and fixed rate. Floating rate is generally less compared to fixed rate because it depends on market volatility.
6) How to use online Education Loan EMI calculator?
To calculate your EMI amount, there’s no need to remember big formulas. Just enter few things and we will do that for you. The steps to calculate EMI for Education loan is as follows:
- Enter the Loan amount
- Interest rate charged by bank
- Duration of the course you are taking
- Tenure of the loan
After entering these you will get the Equated Monthly Installments (EMI) you need to pay and the bifurcation of the total loan ad interest amount. In this Online Education Loan EMI Calculator, we have taken the moratorium period as 1 year.