There is no harm in taking an education loan for children’s higher education. Whether it is concerned parents, or even young professionals, an educational loan has many benefits and can ensure a fast rising career graph. Education loans have become a necessity nowadays as educational expenses on engineering and medical courses have become so high that it has become impossible to pay the total fee of these courses. In such a situation, an education loan from any bank can be availed so that a child can easily study from a good institution. From SBI, PNB, HDFC Bank to ICICI Bank, all have education loans. In addition to many government and private banks, financial institutions are also making education loans easily available.
Education loan conditions:
Students or their parents can take education loans from banks for graduation, post-graduation or professional courses. The educational institute should be recognised by the government. It is easier for an individual to take education loan from the bank where he\she already has an account. Under the Education Loan, the cost of going to college, hostel, library, computer for study, as well as in the case of international education is also covered.
Education loan eligibility and documents required:
Indian citizens can take education loans from all commercial banks. Certain conditions apply, of course:
1. The applicant should be between 16 to 35 years of age
2. The loan amount is calculated on the basis of income of the applicant.
3. Different bank demands different documents for education loan, but generally, the papers include marks sheet, admission or scholarship of the previous examination, the expenditure on the various stages of the course, the last six months’ bank statement.
4. Banks need to be given the documents related to the assets and liabilities and income tax returns of the last two years of parents and child or applicant.
5. Apart from this, the bank takes residence proof and ID proof of the applicant and parents.
Limit of an education loan:
Generally, the banks only impart education loans up to Rs 10 to 15 lakh for studying in India. In the case of studying abroad, the amount can go over Rs. 20 lakhs. However, the loan amount is not regulated and the banks or financial institutions can provide them depending on the individual’s credit score.