What is an education loan?
An education loan is a sum of money borrowed from a bank or NBFC to finance education related expenses. The student doesn’t have to pay the money while in college or school and will be given a minimum of 6 month of grace period after he graduates to repay the amount to the lender.
Makes education simpler – Education is not getting cheaper and the market is evolving which means graduating from conventional courses won’t do. There are several courses out there that trains
the student in specialized skills, but these aren’t cheap and an Education loan comes in handy at that time.
Moratorium period – One of the main benefits of availing an education loan is the moratorium period. You have a span of 1 year after the completion of the course or 6 months after getting a job whichever comes earlier to begin the process of repaying the loan.
Ease of availability – Availing an education loan is a piece of cake. Almost all of the banks offer them, it takes 15 days to process the loan given that the documents are appropriate.
Low interest rates – Interest rates on education loans are lower than personal loans, also several banks offer a concession of 0.5% on interest rates to female students.
An education loan is apt for pursuing higher studies, be it in India or abroad for those students who are low on funds and can’t afford it.
How it Works