With every passing year, the cost of education is skyrocketing in India. In such a scenario, it becomes very difficult for parents to arrange funds for fulfilling their child’s education requirements. Today, pursuing higher education in India or abroad can cost you anywhere between Rs. 2 lakhs-Rs. 50 lakhs or more depending on the course, duration of the course, location and other factors. During such times, availing an education loan is the right choice as the loan amount can be utilized for funding the cost of the course and other expenses related to it. The loan amount offered may depend on several factors including age of the applicant, credit score, employment type and may also vary from lender to lender. Besides, helping your child pursue higher education, an education loan provides several other benefits that you need to know about.
Benefits of education loan
Protect your savings: Taking an education loan means you don’t have to liquidate your investments, which will enable you to achieve your long-term financial goals at ease. Be it fulfilling your retirement goals, your child’s marriage or buying a house, an education loan protects your savings by helping you with funds that will make it possible for you to fund your child’s education requirements.
Provides tax benefits: The interest paid towards education loan is eligible for tax exemption under section 80E of the Income Tax Act. You can claim rebate on tax for upto 8 years.
Pay after education: You don’t have to worry about repaying the loan EMIs immediately as they are payable only after the study programme is complete. You get a repayment schedule that can be used for planning your future financial goals. This also gives the borrower enough time to look for a suitable job that pays well and helps him to repay the loan on time.
Credit history: Timely repayment of the education loan helps in increasing the credit score that will make it possible to secure unsecured and secured loans in future at a low interest rate.
Coverage for a wide range of expenses: An education loan not only covers tuition fee but also covers costs related to study material, accommodation, buying laptop and others.
Eligibility criteria for education loan
The below eligibility criteria has to be complied with to be able to secure an education loan:
- Should be an Indian citizen
- Applicant should be aged between 16-35 years
- Document related to secured admission from the university should be provided
Documents required for education loan
The below list of documents has to be submitted to get an education loan:
- KYC documents i.e. identity and address proof
- University or college admission letter
- Fee structure
- KYC and income proof of the co-applicant
- Any other additional documents required
- Class 10th and 12th mark sheets
Apply with Credit Fair
Credit Fair, an RBI registered NBFC provides education loans for coaching classes and professional courses at ZERO COST EMIs. With us, you can get a loan upto Rs. 10 lakhs to help your child secure his dream future.