What is Education Loan? And It’s Types

It is everyone’s dream, that after getting the best education, he gets employed on a high post. So that his life can go smoothly. But it’s easier said than done. It is very difficult to do that. If you get a good education. So even if it is late but you definitely get success. But if you can’t get education. So becoming a successful person in life becomes a bit difficult task. There is no difficulty in getting a simple education. But pursuing higher education becomes a bit difficult task for many middle class students. Because to get higher education, not only your hard work but also money is needed.

Any student can achieve his education by getting an education loan. and fulfills his dreams. But getting education loan is also not such an easy task. How can we get you an education loan here today? I am going to give full details about it. Using which you can easily get loan.

What is Education Loan?

Education loan is that with the help of which you can do your study work like college fees, basic course fees, living, exam and project fees etc. by taking loan from bank. Students and girls can take this loan for educational purposes.

Whether you want to study in India or you want to study abroad, but you get frustrated due to lack of money. So friends, you do not need to be disappointed, because nowadays some banks and some finance companies give education loan more than 10 lakh rupees to study in India,

And can provide more than 10 lakh rupees to study abroad. Some private banks can give this loan amount up to Rs 1 crore for higher studies.

Education loan is an unsecured loan, if you want to take the maximum loan amount then you must have a guarantor and the bank may also ask you for security.

Type of Education Loan

Education Loan Based On Location

There are two types of location based education loan

1. Overseas Education Loan

When a student takes a loan from a bank or financial institutions for his studies abroad, it is called foreign education loan.

2. Domestic Education Loan

Students who take loan from banks or financial institutions to study in India is called Domestic Education Loan.

Education Loan Based On Collateral

There are two types of Collateral based education loan

1. Secured Education Loan

When education loan is taken in large quantity, the bank or financial institution can take your property as security in lieu of giving you the loan. This is called secured education loan.

2. Unsecured Education Loan

You can take this type of education loan from banks or financial institutions without any collateral.

Education Loan Based On Course

There are three types of Course based education loan

1. Postgraduate Loans

Many students take loan from bank or financial institution to continue their further studies after their graduation, this is called Postgraduate Loans. Most of the post graduate courses in India are of 2 years duration.

2. Undergraduate Loans

When a student has a loan to complete his bachelor’s degree, it comes under Undergraduate Loan. Through graduation loan, students can get a good job after completing their graduation.

3. Career Development Loans

Many people do any special type of course to improve their career and they get loan from banks or financial institutions to do these courses. This loan comes under Career Development Loan.

Documents Required for Education Loan

  • KYC Documents
  • Marksheet of 10, 12 and graduation
  • Admission Form of the college where you are taking admission.
  • Fee structure of the college or university.

Eligibility to take education loan

  • The citizenship of the borrower should be Indian.
  • It is necessary to have an admission form for any one diploma from a recognized university or college.
    12th pass for undergraduate loan and graduate course degree for post graduate loan.
  • You must have the necessary documents for giving a loan through a bank or financial institution.
  • A guarantor is required to take an education loan of more than 4 lakhs. The guarantor can be the parents or relatives of the student who already has an account in the bank from where the loan is being taken.

Advantages of Education Loan

  • With education loan, students can pursue their studies of their choice.
  • Students can get higher education by taking admission in recognized university by getting education loan.
  • If you have the admission form of a recognized university, then you can get education loan easily.
  • Education loan has to be repaid when you join a job after completing your studies.
  • Education loan is important to fulfill the dreams of the students.
  • Through education loan, students can study abroad.

Disadvantages of Education Loan

  • Banks or financial institutions see the student’s mark sheet before giving education loan, so academic record should be good to get education loan.
  • The interest rates on education loans are also high.
  • If you take an education loan of more than 4 lakhs then you need a guarantor.
  • It can be difficult to get an education loan for courses in which there is no guarantee of getting a job.

How to get Education Loan?

First you have to select the bank or institution. From where you want to get education life.

After that you have to go to the bank to get complete information about the education loan. And then you by following all the steps mentioned by the bank. Can get loan.

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