5 terms of an education loan that you should know about

Education loans help aspirants to learn the trades of their choice in good institutions in India or abroad, and thus, build an exemplary professional career. These loans have been helping students for quite a few decades now. Also, they are becoming accessible and fast due to the widespread acceptance of streamlined loan process practices. Today, all you need to do is simply go online and search for “education loans India”, and you are bound to get a huge list of financial institutions that offer loans.

But before you go ahead and apply for an education loan, here are 5 terms that you should be familiar with:-

1. Unsecured loan


A lot of students wish to pursue their further education, but many do not wish to provide collateral to get an education loan. Now, banks mandatorily require collateral from students if the loan amount crosses Rs.7.5 lakhs. This is an amount that is quite likely to cross, especially if we are talking about pursuing an education abroad. This is why many students choose Non-Banking Financial Companies (NBFCs) when they search for “education loan India”, as NBFCs provide loans without having any collateral requirements.

2. Moratorium period

Moratorium period is a grace period given on education loans in India. It lasts as long as 1 year from the time the student completes his or her education, or 6 months from getting his or her first job, whichever comes earlier. The tenure of the moratorium period could differ from lender to lender. When you search for “education loan India” online, make sure to choose a lender that offers a suitable moratorium period.

3. Repayment tenures

The tenure of an education loan is nothing but the time that you take to repay the loan. A good lender would offer multiple repayment tenures for your education loan so that you have no problems in clearing it. You can either choose a short repayment tenure (bigger monthly instalments but lesser interest charged), or a long repayment tenure (smaller monthly instalments but heavier interest charged).

4. EMIs

EMIs are the monthly instalments you pay towards clearing your education loan. An EMI of your education loan will depend on the tenure, principal amount and the interest rate of the loan. As the interest rate and the principal amount are fixed as soon as you get the loan, the EMIs depends mainly on the tenure you choose. The lower the tenure, the higher the EMI value, and vice versa.

5. Tax benefits

This term is a great one for borrowers. Taking an education loan can help you get tax benefits. According to Section 80E of the Income Tax Act, you can get tax deductions on the interest that you pay for your education loan. Great, isn’t it?

So, these are 5 aspects of education loans in India. You can choose the best education loan lender for yourself by analysing these 5 aspects in each lender’s loan before finalising the right one for yourself. All the best!

Comments

  1. Jennifer K RobertMay 10, 2021 at 12:19 AM

    Hi everyone, I saw comments from people who had already got their loan from Anderson Loan Finance. Honestly, I thought it was a scam, and then I decided to make a request based on their recommendations. A few days ago, I confirmed in my personal bank account amounting to $15,000 dollars which I applied for. This is really a good news and I am so very happy that I advise all those who need a real loan and who are sure to reimburse to apply through their email (text or call) +1 719 629 0982. There are sincere loan lenders! They are capable to lend you a loan. Contact Mr Anderson E-mail: andersonraymondloanfinance@gmail.com

    Phone: +1 719 629 0982


    E-mail: andersonraymondloanfinance@gmail.com

    Office address is (68 Fremont Ave Penrose CO, 812400).

    ReplyDelete

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