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With education prices sky-rocketing every year, funding higher education from your own pocket can leave a gaping hole in your savings. But, considering alternative college options due to a lack of funds should never be an option. Personal loans<\/a> for students can help you get the education you deserve and fulfil your true potential. Before availing of a loan, it is essential that you know a few important things related to it.<\/p>\n\n\n\n Here are some student loan<\/a> facts you should know before applying for one.<\/p>\n\n\n\n If you\u2019re wondering what is education loan, it is a type of financial support provided by banks and financial institutions to help students pay for academic expenses. Instead of paying everything upfront, the student can study now and repay later in instalments.<\/p>\n\n\n\n To be more specific, if you\u2019re trying to understand what is education loan in India, it refers to a loan designed under Indian banking guidelines where students can study now and start repayment after completing their course. This usually includes a moratorium period<\/a> (course duration plus 6 to 12 months) to ensure that repayment begins only when the student is financially stable.<\/p>\n\n\n\n Before applying, it is essential to know key education loan information so you are aware of what you\u2019re agreeing to.<\/p>\n\n\n\n If you’re trying to understand what is education loan, this is the most basic type. It is offered for courses pursued within India<\/a>, covering tuition fees, accommodation, books and other academic costs. The education loan conditions generally include confirmed admission to an Indian institution, co-applicant income proof and basic documentation.<\/p>\n\n\n\n For students planning to study abroad, this category explains all about education loan in an international context. It covers travel, visa fees, tuition, living expenses and exam charges. The education loan information you must know here includes higher loan limits, stricter eligibility checks and credit evaluation. This is ideal for students who want to know the mechanism behind education loan when applying to foreign universities<\/a>.<\/p>\n\n\n\n These loans require a financial asset like property, FD or insurance<\/a> as security. This is most useful for those who need large loan amounts at lower interest rates. The education loan conditions involve asset valuation and legal verification, so the bank is assured of repayment. This type helps you understand all about education loan when collateral is involved.<\/p>\n\n\n\n If you\u2019re wondering what is education loan in India when you have no property is available, this is the best example. These loans are approved without collateral<\/a> and are based on your academic profile, course reputation and co-applicant\u2019s income. According to education loan information, interest rates can be higher and documentation stricter.<\/p>\n\n\n\n These loans come with subsidies and benefits under schemes like Vidyalakshmi Portal<\/a> and CSIS. If you need support to afford studies, this is where you learn all about education loan opportunities backed by government assistance. The education loan conditions depend on parental income limits, recognised courses and institution eligibility.<\/p>\n\n\n\n The student pursuing the degree is the main applicant for the loan, and hence, will be responsible for repaying the loan. A co-applicant is mandatory for full-time programs. Parents, spouses, or siblings can be co-applicants for the loan<\/a>. If the student is incapable of making the loan repayments, the co-applicants will be responsible for repaying the loan.<\/p>\n\n\n\n Once you receive the admission letter from your desired college, you can get your loan amount approved. Personal loan<\/a> not only cover your tuition, but also extra expenses such as hostel fees, cost of books, travel costs, and so on.<\/p>\n\n\n\n The eligibility criteria for Tata Capital\u2019s education loan<\/a> are as follows:<\/p>\n\n\n\n Lenders want to ensure that borrowers have good employment prospects after finishing their degree so they can repay the loan. Thus, they will make sure that your course is accredited and your university has a high placement rate. All in all, lenders make sure that the course and university the applicant is studying at have a good reputation.<\/p>\n\n\n\n The documents required for Tata Capital\u2019s education loan<\/a> are as follows:<\/p>\n\n\n\n If you\u2019re planning to apply for funding and want clear education loan information before you begin, here\u2019s a short guide using Tata Capital\u2019s process as an example.<\/p>\n\n\n\n The education loan process<\/a> is largely similar across lenders, but always review each lender\u2019s specific terms, eligibility criteria, and documentation rules before proceeding.<\/p>\n\n\n\n According to section 80E of the IT Act, the borrower is eligible to claim tax deduction<\/a> equal to the interest amount. While the entire interest amount can be deducted from your taxable income, this is only allowed for a maximum of 8 years. Note that the principal amount repaid does not qualify for any kind of tax deduction.<\/p>\n\n\n\n There are some common mistakes students and parents unintentionally make during loan planning. The most common of them all is not researching lenders and comparing options properly.<\/p>\n\n\n\n Some other common mistakes are: <\/p>\n\n\n\n Looking for education loans to finance your higher education? Look no further. Tata Capital<\/a> offers competitive education loan interest rates<\/a> starting at 10.99%.<\/p>\n\n\n\n So what are you waiting for? Click here to check out Tata Capital\u2019s\u00a0education loan EMI calculator<\/a>\u00a0and formulate a repayment plan best suited to your needs.<\/p>\n\n\n\n <\/p>\n\n\n\nWhat is Education Loan?<\/strong><\/h2>\n\n\n\n
Types of Education Loans Available in India<\/strong><\/h2>\n\n\n\n
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Who Can Apply for an Education Loan?<\/strong><\/h2>\n\n\n\n
What Does an Education Loan Cover?<\/strong><\/h2>\n\n\n\n
Education Loan Eligibility Criteria<\/strong><\/h2>\n\n\n\n
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How Course and University Affect Loan Eligibility<\/strong><\/h2>\n\n\n\n
Documents Required for Applying Education Loan<\/strong><\/h2>\n\n\n\n
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How to Apply for an Education Loan in India (Step-by-step Process)<\/strong><\/h2>\n\n\n\n
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Tax Benefits on Education Loan in India<\/strong><\/h2>\n\n\n\n
Top Mistakes to Avoid When Taking an Education Loan<\/strong><\/h2>\n\n\n\n
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Conclusion<\/strong><\/h2>\n\n\n\n