Everyone aspires to get the best quality of learning, from the undergraduate level to the doctorate level. After all, your education is the most reliable investment you can make. Sadly, higher education at esteemed Indian institutions often comes with a premium price tag, and sometimes your savings are not enough.
In such situations, a personal loan can make higher education accessible. Here are some things you should know before you consider applying for an education loan.
Who can avail of an education loan?
If you wish to pursue technical education or enrol for a professional degree course, you’re eligible to apply for aneducation loan for higher studies in India.
At Tata Capital, you can avail of an education loan of up to Rs. 25 lakhs by fulfilling the following criteria:
- You must be an Indian national.
- Your age must be in the range of 16 to 26 years.
- You must have a good past academic record.
- You, or your parents if you’re not employed, must have a stable income source. Otherwise, you should provide security or have a guarantor.
Additional Read: Facts you need to know about Education Loan
What expenses does an education loan cover?
A personal loan for higher education in India can help you cover your fees at any stage of your career. If you want to pursue a bachelor’s degree for 3 to 4 years, you can avail yourself of undergraduate loans. Similarly, there are postgraduate loans for 2-year long postgraduate degree courses, such as MTech and MBA.
Further, if you’re a working professional looking to add more skills by taking certification courses, you can also take a career development loan.
Apart from the fees of the course itself, education loans also cover the following:
- Exam fee, library fee, and laboratory access fee
- Insurance premium, if applicable.
- Any caution fee or refundable deposits are also covered. The total of these expenses, however, should not exceed 10% of your loan amount.
- Purchase of books, computers, instruments, and uniforms.
- Additional expenses like study tours, projects, thesis, etc. The total expenses should not exceed 20% of the loan amount.
Are there any tax benefits?
When you avail an education loan for studies in India, you can enjoy tax benefits under ITA Section 80E. The total interest paid is allowed as a deduction, regardless of the amount. You can claim the benefits from the year in which you start paying the interest on the loan and keep claiming deductions for the next seven years or until the interest is paid in full, whichever is earlier.
What are the documents required?
You must submit the following, along with any other documents your lender may specify:
- KYC documents (identity proof, address proof, etc.)
- Marksheets of class 10th to your highest education level
- Your admission letter
- The fee structure of your institution
- KYC and income proof of the co-applicants
Additional Read: What are Some of the Challenges of Taking an Education Loan?
To sum up
If you want to provide quality education to your children or achieve better qualifications as a professional, Tata Capital is here to support you. We offer competitive personal loan interest rates and flexible repayment options. With minimal documentation, instant approval, and quick disbursal, we help you achieve your dream of quality education.
Visit our website to learn more.