Quick guide to Education Loan: Importance, Documents and Procedure

Education loan
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If you are an aspirant who is willing to achieve the dreams but worried about the expenses, then this article is for you.

Here we are going to tell you about the importance of Student loans. Not only importance, but all the essential details will be shared regarding student loans in this article.

So if you are one of the aspirants who are facing financial issues, keep reading this article till the end. We ensure you resolve all your queries regarding student loans.

Why Student Loans?

Students, we are living in a competitive era, where education is becoming expensive. There are a lot of students who belong to middle class families and their parents can not afford their further studies due to financial problems.

According to bankloanoffer, a lot of students leave their studies and start working to supplement the income of their families. This directly impacts their future and goals.

For the solution to this problem, the students try to manage their expenses by teaching, giving tution classes, by starting small scale business, freelance work, etc. Due to which their studies usually get affected.

There are a lot of government or private banks, Non-Banking Financial Companies in India that provide education loans to students at attractive interest rates.

Above all, going with a student loan is a great option as it provides you a lot of benefits. By taking a student loan you can pay the fees that are demanded by the colleges and complete your education. After that the students can achieve their goals and pay the loan accordingly.

Before knowing the process of getting a student loan, let’s have a quick look at the benefits of an education loan.

Benefits of Education Loan

Well, there are a lot of benefits of student loans. Here we have mentioned some of them that will tell you the brighter side of student loans.

  • Student loans are provided in order to help the students in their studies. Due to this, student loans are provided at lower interest rates. Additionally, the female students get some special discount in the interest rates.
  • The second most loved benefit of student loans is that you have to pay the amount once you complete your studies. Once your studies are completed, the EMIs of the loan is to be paid to the lender.
  • Education loan covers a number of expenses that are generated while studying. This includes tuition fees, travel, house rent, university fees, food expenses, living expenses, gadgets, etc.
  • While borrowing the loan from the lender, the borrower is not supposed to liquidate any of his assets. In case you are willing to get an educational loan, you need not to liquidate your FDs, Government bonds, etc.
  • The borrower of a student loan gets the tax benefit and can avail the income tax exemption on the education loan.

These were some quick benefits of an education loan, which a student can avail. Let’s have a look at the procedure for applying for student loans.

Requirements for Education loan

The borrower should be a citizen of India. Non-Indian Residents can also avail the student loans facility.

Bank account is also required in this process. Important documents such as Identity proof, Age proof, Salary slips, Balanced sheet Audit, Applicant’s passport-size pictures (Latest), Official Admission letter, Marksheets are also required for the educational loan.

How to apply for an Education loan?

To apply for an educational loan there are two ways. In the first one, the borrower may apply for this loan by online means. This can be done by visiting the official bank website and by submitting a request online.

In the second way, the borrower may visit the nearest branch of the bank. After that the borrower has to apply by filling the required form and submitting the required documents.

Once the loan gets approved by the bank authorities, the amount will be credited in your bank account and you can use that for your studies.

Summing up

This was all about the educational loan, its importance, documents required and the procedure to get this loan.

Student loans can be helpful in achieving your dreams if you are not financially strong. We will recommend you to go with it as it is one of the best ways you can study without any hiccups.

We hope that this article is valuable for you. In case you find it helpful, you can give it a share on social media.

Also read – Scope of Government Jobs in India

Deepak Rawat

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