The maximum loan amount varies depending on factors such as the course of study, institution, and lender’s policies, typically covering tuition fees, living expenses, and other related costs.
Eligibility criteria usually include factors such as academic performance, admission to a recognized institution, co-applicant’s financial stability, and nationality.
Commonly required documents include academic records, admission letter, course fee details, identity proof, address proof, income documents of the co-applicant, and collateral documents if applicable.
Interest rates can be either fixed or floating, depending on the lender’s policies. Rates vary based on factors such as the borrower’s creditworthiness, loan amount, and prevailing market conditions.
Repayment tenures for education loans typically range from 5 to 15 years, with some lenders offering extended repayment options for higher loan amounts.
Collateral requirements vary among lenders and loan amounts. Some education loans may be secured with collateral such as property or investments, while others may be unsecured based on the borrower’s creditworthiness.
Yes, many education loans offer a moratorium period during the course duration and a grace period after course completion before the repayment begins, allowing students time to find employment.
Yes, education loans can be used to finance studies abroad, covering tuition fees, living expenses, travel costs, and other related expenses.
Failure to repay the education loan can lead to penalties, legal action, and damage to the borrower’s credit score. In extreme cases, lenders may seize collateral or pursue other collection methods to recover the outstanding amount.
Yes, under Section 80E of the Income Tax Act, borrowers can claim tax deductions on the interest paid towards education loan repayments, providing relief on taxable income.
