Education Portal for Students in India

The education system in India is vast and competitive, where numerous universities offer degrees and diplomas in a variety of courses and specialisations. India has become an education hub for students across the world. One of the easiest ways to finance your higher education in India is to use a personal loan for education.

An education loan refers to the cost of education borne by lending institutions for students who wish to undertake various professional courses/degrees from India or abroad. With a loan, you can easily cover tuition fees, examination fees, living or accommodation costs, travel expenses as well as associated pre-admission costs.

The eligibility criteria for personal finance for education depend upon the institution’s lending policies and associated job-oriented outcomes. To avail of education finance, you must be well informed about eligibility criteria, loan amount, loan process, interest rates, security, services, processing fees, documentation, and few other details.

Undergraduate Degrees and Diplomas (BA, BCom, BE, BEd, BSc, BBA, MBBS, B Tech, LLB. and others)Postgraduate Degrees and Diplomas (MA, M Com, MSc, M Res, LLM, MFA, M Ed, M Phil, MBA, MD, and others)PhD courses/Miscellaneous Doctoral ProgrammesSpecialised Training CoursesCertificate Courses (In Computers, Nursing, Teaching, job-oriented course, etc.)Diploma in Engineering, Agriculture, Veterinary courses, any job-oriented course, etc.)Degree / Diploma in Army, Navy or Air-Force Training coursesDegree / Diploma in Aeronautics or any other relevant Pilot Training coursesDrone Training in renowned institutesVocational courses offered by government institutesMiscellaneous other courses run by the State Skill Mission or National Skill Development Corporation

Nowadays, owing to the increased popularity of short-term courses for soft skills, animation, English learning, catering, spoken English, data science, Artificial Intelligence (AI), digital marketing, event management etc., are also eligible for loans.
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What age do student loans stop?

When do student loans get written off? – While fluctuating interest rates are moving the goalposts for the highest earning graduates, they are unlikely to change things for those on low-to-middle incomes given student loans issued since September 2012 are written off by the government 30 years after repayments start.

1. If you have graduated, your first repayments will come out of your paypacket from the following April.
2. So if you finished your course at the age of 21, you’ll be paying off your student debt until you turn 51 or 52.
3. Current graduates are likely to be paying back their student loans into their 50s (image: AFP/Getty Images) Graduates on higher salaries are more likely to finish paying off their student loans ahead of the cut off date.

For students who took out loans before the 2006/07 academic year, your student loan will be written off once you turn 65. For those who took them out between the 2006/07 and 2011/12 academic years, the cut off is 25 years after the April your repayments started.

• Under the rules coming in for those studying from September 2023 onwards, loans will be written off 40 years after repayments begin.
• It means they are likely to be paying back their loans into their early 60s.
• As the government has announced a lower repayments threshold of £25,000 for these future graduates, low-to-middle income former students will pay back more towards their student loans for a longer period.

Save the Student – a pressure group for current and recent students – told NationalWorld this additional decade of repayments was “scary”.
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How many times we can take education loan?

Should you take an education loan? | Education Loans in India 2021 | Ankur Warikoo Hindi Video

Secured Loan –

Applying For a Second Education Loan From the Same Bank – A student may visit the bank from where they had taken their first education loan and explain the additional requirements for a second education loan. However, there are some fine prints that students need to understand and we will discuss that here. As a rule of thumb, the second loan amount that a student can take will be the maximum limit minus the outstanding amount of the first loan. For example, a student who was eligible to take an education loan of 30 lakhs took 20 lakhs for his first education loan and has repaid 15 lakhs. This means that his outstanding loan amount for the first education loan is 5 lakhs. So, he would now be eligible to take a second education loan of 25 lakhs ( 30 lakhs – 5 lakhs). This can however vary from bank to bank. A student who has taken a secured education loan from a government bank for their first loan also needs to make sure that the value of the collateral they had pledged for the first loan should be enough to cover both the loans. This will enable them to get their second loan sanctioned easily. Let us take the example of a student who pledged collateral of 1 crore for his first education loan but took a loan of 50 lakhs only. So, this student will be eligible for a second education loan of 50 lakhs. In case the collateral value is not sufficient, they need to check whether the bank allows them to pledge new collateral (of a family member or even a non-family member) for the second education loan. A student applying for a second education loan will all under either of the following two categories –

If the repayment for the first education loan has not begun yet – This situation is applicable for students who have just finished their undergraduate studies and are about to start their post-graduate program in a month or so. Since students get a moratorium period of six months, they can immediately apply for a second loan. Once the second loan gets sanctioned, the moratorium period of the second education loan will start. This way, the student will be able to get a loan holiday, for both loans. If the repayment of the first education loan has begun – In this situation, the borrower will have to continue to repay the EMI as agreed.

As is evident from the above discussion, it is wiser to plan and apply for a second education loan before repayment for the first education loan starts.

Applying For a Second Education Loan from Another Bank – What if the bank from where you had taken your first education loan is unwilling to sanction a second education loan? Well, fret not and just approach another bank. For this, there are three options –

Take a fresh loan from the new bank. Students can also transfer their first education loan to the new bank and then apply for the additional second education loan from the new bank. The student will incur some loan transfer charges, but that would be a minuscule amount. Students can also completely repay their first education loan, get a NOC certificate from the bank and apply for the second education loan at the new bank.

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Does everyone get education loan?

Banks provide loans for education to qualified students who require financial support to pursue higher education. People’s careers have benefited from these loans, and they were able to continue their studies when they otherwise would not have been able to. Nevertheless, not everybody is eligible for a student loan.
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What is the minimum amount of education loan?

Education Loan Interest Rate in 2022 – Last Updated 13th Dec 2022

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Grady A. Lowry