Online Education Loan Scheme For Students In India

When it comes to education, it is always regarded as an investment and not as an expense. The quality of education you get can greatly impact your future career. Hence, you must opt for the best course at the best college to pursue your higher education. Though, the rising cost of higher education might act as a roadblock. This is where the benefits of an online education loan come to the fore. Through this loan, you can pay for the cost of your higher education upfront and then repay the loan amount in EMIs.

An online education loan can be the first loan you will ever take. This means you might need to add a parent or a family member as a co-applicant. It will help boost your chances of getting the required amount for the loan. There is no need to offer any security to get this loan. Read on to learn all about the online education loan scheme for students in India.

Features of Online Education Loan

Listed here are some of the most crucial features of an online education loan that you must be aware of.

Loan Amount: If you want to take an online education loan, you need to know the loan amount that you require. Most lenders now offer high-value loans for studies of up to Rs. 1.5 crores. The maximum loan amount that you can avail of will be based on your profile and the course fees that the college is charging. Banks and NBFCs offer online education loans for overseas colleges and universities as well. Though, you must check with the lender if the course and college you wish to apply for are acceptable to them. Some lenders might offer to pay only for college fees. Expenses like travel, boarding, lodging, and other costs must be borne by you.

Loan Tenure: Loan tenure for an online education loan can vary per the lenders. Some lenders offer these loans for up to 7 years, while others offer them for up to 15 years. Most lenders will need you to pay the interest during the study period. You can start repaying the principal amount after the course completes. Some lenders may also offer you a mortarium for loan EMIs to allow you time to find a job after completing the course. You must opt for a tenure that gives you an EMI amount which you may be able to repay easily. If you do not pay the interest during the repayment holiday, the accrued amount will be added to the principal. This will result in the EMI being updated.

Interest Rate: Most lenders offer education loans at a low-interest rate. The interest on this loan is linked to the repo rate from the RBI. You can get an education loan starting from as low as 10.6% per annum. Some lenders can offer you a rebate on the interest rate if you keep paying the interest cost during your studies. You may also take a personal loan to pay for your education fees. You must select such an offer where the interest is low, as this will help you keep the EMI amount under your budget.

Processing Fee: The processing fee for an education loan will vary as per the lender and the loan amount. Most lenders waive this fee if the loan amount is less than Rs. 7.50 lakhs. If the loan amount is over this limit, then a processing fee of around 1% to 2% may be charged. If you are giving security to get this loan, then you will need to pay the charges for legal and technical reports. No charges are levied for mortgage creation under education loans.

Eligibility: You must meet the rules and terms given by the lenders related to eligibility for an online education loan. The applicant must be an Indian national, and the course and institute you select must be a part of the list the lender gives. You will need to provide the admission offer letter given by the college. If a parent has been added as a co-applicant, then he/she must also provide all the papers like ID proof, address proof, income proof etc. You must also provide all your educational certificates to the lender. If you have gained admission after clearing an entrance test, you must also provide a copy of that result.

Expenses Covered: You must ask the lender about all the costs the loan would cover. This will allow you to plan your expenses a bit better. While the details can vary across lenders, some of the common costs that an online education loan covers are:

• Admission fee.
• Costs to complete the course, such as study tours or project work.
• Caution deposit, building fund or refundable deposit.
• Examination fee, library fee, and laboratory fee.
• Hostel expenses and mess charges.
• Insurance premium for the student.
• Cost of books, uniforms, or other equipment.
• Cost of laptop if needed for the course.
• Travel costs such as air tickets for overseas.
• The tuition fee is payable to the college.

Taking an online education loan can be a good choice to go for a course of your choice. It will allow you to focus on your studies and repay the loan after you start working. You need to do a lot of research before you pick an option.

Though, it is vital to note that an online education loan is still a loan, and you must make a wise decision. You must visit Piramal Finance, which offers great loans at good interest rates. They also have many articles and blogs to help you learn more about the world of finance and loans.