Planning to go abroad to study? If money is the biggest problem, there are ways out. Why don’t you get a loan? There are hundreds of banks ready to pay you the cash. It is real!
Why should students need education loans? Why should they study at such a very high rate of interest and then worry about repaying the loan? Education loans support students who want to pursue higher education in their own countries or abroad. It means students do not have to worry about their classes. It is a matter of worry if a student has to find money to pay his fees while the amount to study rises above this.
- Generally, for a higher loan amount, a collateral security is required. Usually, the maximum loan limit for students studying in India is capped to Rs. 10 lakh and 20 lakh for studying abroad.
- Flexible repayment option with longer time period, i.e. 10–15 years.
- Tax rebate under Section 80E.
- Depending on the repaying capacity of students/parents with margins, the quantum of finance is capped maximum of Rs. 10 lacs for students applying for studies in India and Rs. 20 lac for studies abroad. It is designed to cover the tuition fees, cost of books and hostel charges, if any.
Education Loan – Eligibility Criteria – For Indian Students
- The eligibility for education loan differs from provider to provider. However, the basic criteria are as follows:
- You should be an Indian citizen
- You should fall in the age bracket defined by the respective bank
- You need to apply in a recognized college/institution
- A good academic record helps with quick loan approval
- You need to apply for the loan with a co-applicant who has a regular source of income
- Education Loan- Documents Required
- Application form and photographs
- Letter of admission received from the college/institution
- Fee breakdown, stating the tuition fees and other charges
- Education marksheets, starting from class 10th to the last qualifying exam cleared
- A declaration/affidavit to confirm no other loan has been availed
- Identity and signature proof – Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
- Address Proof – Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/ electricity/ water/ credit card bill or Property tax.
- Age Proof- Voter ID card, Secondary School Certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
- Income proof of Salaried individual
- Latest salary slip with Form 16
- Salary account bank statement for the six months prior to applying for loan
- Income proof of Self-employed businessmen/professionals
- Latest ITR (Income Tax Returns), computation of income, Profit & Loss and Balance Sheet certified by a CA
- Business continuity proof
- Qualification proof of highest professional degree
Insurance – Why do we think that insurance helps you?
Paying a little to stay stay safe is not bad. Many people think that insurance companies seldom pay the policy amount in times of need but we should really believe many of them.
Illness – We are not Immortal
Even if you’re in good health, an unexpected illness or injury could require you to pay out-of-pocket if you don’t have health insurance. If you’re uninsured and unexpectedly require surgery or other emergency care, your expense will be for the full amount of the services, which could be thousands of dollars. While you may save money every week by opting out of an employer-based or individual health insurance plan, the costs of being uninsured could be much greater in the long run.
Natural Disasters are Blind and Deaf
Homeowners and renters face the risk of their property being damaged by a natural disaster or a home robbery. If you are not insured, it may be costly to replace all of your belongings. You may not think your belongings are worth the insurance premiums, but replacing electronics alone could cost thousands of dollars, depending on what you own. If you are insured, your coverage can help you replace these items.