Educational loans in India and How to Apply Educational loans Procedure: Educational loans in India popularly known as Students loans have become a standard method of funding higher education in India with the cost of educational grades going higher. This is useful where the spread of self-financing organizations (which has less to no finance from the government) for higher education in fields of technical education like engineering, management and medical. Basically in technical education the fees were very high and sometimes they were not affordable by the students at that time students can apply for education loans, these loans were sanctioned by all public sector banks and private sector banks.So students can get the educational loan from any one of the bank.
Eligibility for education loan:
candidates who are pursuing higher education can apply for education loan. Before getting the loan students have to satisfy some basic condition such as he/she is the native of India, candidate father income should be less than 1, 00,000. When students have applied for the loan he must have the security guardian for loan amount. Candidates have to repay the loan amount after the completion of students without intrest.
Benefits of educational loans:
Under section 80(e) of the Indian income tax acta student can exempt the amount paid against the interest of the education loan either for self or for he/she spouse/ children for eight years from the year he/she starts to pay the loan or for the period of the loan is effect. Day by day education loan is becoming very popular because of rising fee structure of higher education in our country. An educational loan was started in 1995 by SBI Bank and then many banks have started student loans.The Star Educational Loan Scheme main purposes is providing financial support from the bank to worthy/ meritorious students for pursuing higher education in both India and abroad. The main importance is that every admirable student is provided with an opportunity to pursue higher education with the financial support on reasonable terms and conditions