Education loan and How to get education loan

Education loan 
Education loan is a special kind of loan granted by banks under which some amount of money is granted to students at special rates. With the help of education loan, the students can achieve higher and costly studies at cheaper rates. 
Education loans are basically a form of monetary assistance availed by students to meet the expenses associated with their studies. Education loans can be taken by means of funding, scholarships, financing and rewards, and are granted in cash, which has to be repaid to the lender along with a rate of interest. 

Students who wish to avail education loans are advised to borrow based on their needs as the repayment periods for these loans can vary to a great extent depending upon the lender and the amount borrowed by the student. 
Most of the student loans available to individuals in India are granted at a relatively low rate of interest, and interest payments need not be made immediately. Students are usually granted a period of time before from the time they take the loan to the time they start making repayments. 

Education loans are unsecured loans that can be used to cover expenses related to education, such as tuition fees, books, living expenses and other such expenses as transportation costs, etc. If you wish to avail an education loan but are unemployed or still studying, a co-signer may be required to avail an education loan, like an eligible adult such as a friend, parent or relative. The repayment of the loan can be done once the student has completed his/her education. Given the flexible terms and conditions associated with the repayment of an education loan, availing one is fairly simple and straightforward.

How to get education loan 
In order to avail education loan; students have to submit following documents in the respective bank: 

• The details of the course in which student have taken admission. 
• Total expenditure of course Marksheet of previous examination passed 
• Full details of scholarship availed, if any 
• Xerox of bank statement of last 6 months 
• Residential proof Income tax statement order 
• Property details 
• Two passport sized photographs 

Eligibility for education loan 

The eligibility requirements for education loan are: 

• Age limit for education loan varies from bank to bank. Generally it is from 16 to 35. 
• Students should have a good academic record 
• Students should not have year lap during their education 
• Parents should have a definite source of income 

From where to avail education loan 

Education loan facility is available in each branch of each bank of the country. According to government plans, banks should distribute education loan on the priority basis. 

Education loan limit 

Normally the students can get education loan for studying in India to a maximum limit of Rs. 4 lakhs without any security. Banks can grant loan with security up to Rs. 10 lakhs. On the other hand, you can get loan of up to Rs. 20 lakhs for studying abroad. You need to deposit some security with the bank as bail on loan exceeding Rs. 4 lakhs. This amount of loan may vary from bank to bank. Some banks offer 75% to 90% of course fee as education loan. Some banks offer loan 6 to 10 times of your parents' income. In other words, the HDFC education loan rate will be different from education loan interest in SBI. 

How to repay education loan 

The rules to repay education loan are quite simple. You have to start repayment of loan after six months of completion of course or after joining a job. If, in any case, student is unable to repay the loan, then the responsibility shifts to the guarantor. You can avail tax exemption on repayment of education loan which varies from bank to bank.