The rising expenses associated with education have led to a decrease in the number of students enrolling in educational programs in India. As a result, many deserving students are unable to afford the cost of their education, causing financial strain on their families. To address this issue, banks and non-banking financial companies (NBFCs) offer education loans to students, providing them with the financial assistance they need to pursue their chosen course of study. These loans have lower interest rates compared to traditional loans, and many institutions offer them online, making it easy for students to access and compare options.
The advantages of obtaining an education loan include:
- Coverage of all education-related costs, including college and tuition fees, housing, travel expenses and miscellaneous expenses, for various courses such as science, arts, commerce, MBA, mass media, marketing, economics, engineering, medicine, etc.
- The ability for students to finance their own education, relieving the financial burden on their families.
- Flexible repayment plans, which allow students to plan for future installments and make payments risk-free. Additionally, some institutions offer a moratorium period during which students can focus on finding a job before making payments on the loan’s principal amount.
- The convenience of applying for and managing education loans online, with quick approvals, secure information and no need for in-person visits to branches.
Eligibility for education loans includes being a citizen of India between the ages of 18 and 35, having a good academic record, and having an earning member of the family willing to act as a co-borrower. Collateral is also required, such as a residential property, life insurance policy, or savings in the form of fixed deposits.