With college fees rising each year,education loans are fast becoming a necessity.colleges can cost close to rs.5-10 lakh.Studying abroad is monumentally expensive,costing students upwards of rs 15 lakh. The growing popularity of loans ,has,however,made the procedure more convenient and accessible,with affordable interest rates and the time allowed for repayment is reasonable.
It is advisable for students to do their research, check with banks and other aid-providing organisations and institutions and access which set up works best for the and their financial situation.
According to Indian Banks association norms,banks offer loan of up to Rs. 10 lakh for courses in Indian colleges and up to Rs 20 lakh for studies abroad.
These loans basically cover tution fees,fees for examinations,library,labs and lodging(on campus) books,equipment,instruments and uniform. In case of foreign education,travel expenses as well as caution and other deposits are also accounted for.
Loans may or may not require collateral, depending on how much the student is asking.usually loans upwards of Rs 7.5 lakhs require collateral.Banks allow students a time of six months to one year after completion of the course to start repaying the loan.this gives them adequate time to find employment and figure out a method and structure for repayment by managing their finances responsibly.Education loans,aside from providing funds for learning,are also an exercise in financial discipline.It teaches young people the importance and value of both their education and teaches them how the system functions.
Education loans are now the go-to solution for both students and parents. It guarantees quality education to those who may not be able to afford it instantly.
