Educational loan for studying abroad

The rocketing fees of the educational institutions prompt to set aside the goals of the not well-fed sector of the society. The boon for the middle class academic aspirants has been the education loans. The education loans have kindled the desires of students from all kinds of family

background to dream for a quality education. That too studying abroad has become a very common option for the students of India.

Loans are available for all courses that have got prospects of employment. It includes engineering, medicine, management and any courses that are approved by government/UGC.

The educational loan for foreign education includes the following expenses:

1. Fees payable to college
2. Library/ lab fees
3. Examination fees
4. purchase of books/equipment
5. Travel expenses

The maximum amount given for education abroad ranges between Rs.15 lakh and Rs.20 lakh. The interest rate will be between 11.25 % and 13.5 %. There is no margin money for loans up to Rs.4 lakh but has to be 15% for abroad education. Usually security is not required for loans up to Rs.4 lakh but for above Rs.7.5 lakh, a third party security is required and for above Rs.7.5 lakh a tangible collateral security for the full value of the loan is required.

The repayment of the loans can be started after 6 months of completion of the course. The repayment period may be from 5 to 10 years. These factors depend on the banks and the loan amount. There is no cap amount on the interest amount paid. This deduction is possible under the section 80 E of the Income Tax Act.

The documents required for loan:

1. Mark sheet of last qualifying exam
2. Admission letter from the college or University
3. Expenses to be incurred
4. The borrower’s bank account statement
5. Income Tax assessment
6. Income proof
7. Statement on assets /liabilities.

  

The task of raising money for higher education has been overwhelming. But the recent plausible steps of the government in providing education loans have made the dreams of thousands of students come true.