An educational loan is a type of loan taken for all educational purposes. It is taken so that you can pursue your favorite course from one of the best colleges in India or from foreign countries.
There are several banks in India where educational loans are granted every year to many students. It's your choice from which bank you will take your loan for educational purposes.
There are several benefits of taking an educational loan. Firstly, it reduces a lot of financial stress on your parents. If you are willing to take a course of your choice and are still thinking of taking it because of financial problems then an educational loan comes to mind. The interest rate is much less compared to that of other loans granted. Also, you will get several tax benefits if you are applying for such a loan.
Educational loan not only includes your college fees but also your cost of living, books, laptops, or phones needed for studying purposes. Also, in educational loans, the lenders sometimes offer to pay for the refundable money that every institute asks for.
The main benefit or advantage of an educational loan is the moratorium period is long. Hence, a student can return the money after 6 months or 1 year of the end of the course and this period varies from bank to bank.
In this pandemic situation, when the percentage of losing jobs increased, the rate of taking education loans also rose as several students’ parents lost their jobs and could not afford university fees. It not only lowers the burden on your parents but also makes you self-dependent.
When thinking of higher education plans, a common problem faced by a large number of students is the associated financial burden and constraints in taking up one’s course of choice. With rising lifestyle costs, educational areas have also seen a massive growth in terms of expenses. Combined with the deteriorated economy during the global coronavirus pandemic, it leads to lowered income levels but higher costs of further education. An education loan can be a good way to face this challenge in today’s times.
An educational loan helps a student ward off the full payment of a hefty fee amount. Moreover, it takes the burden of bearing the cost of education from the parent/guardian to a great extent as the student can pay the loan back while working as well. Education loans help you to take up the course and college of your choice without any compromise due to financial reasons. The loan can be paid off in easy EMIs at reasonable interest rates, allowing students to pursue their higher education and improve their professional value in a hassle-free manner.