Education Loan

Till some year's back quality education was not affordable to some illustrious students because of the financial constraints. To remove this constraint of the students Indian Government took the initiative of providing students with education loans. Education loans means financial institute or any bank gives financial support which facilitates student for taking the education. Government of India is promoting education loans in such a way that it ensures ,every student who desire education, but due to financial problem who is unable to gain education can avail education loan and fulfill his/her dreamed educational career. The main aim behind education loan is to bring education within the reach of the students and help them to improve prospect in life. Any student who has secured admission and whose degree/diploma is recognized by University/institute affiliated to any central/state statutory body or recognized by the AICTE or any other reputed institute is eligible for education.

The boom in the banking sector has led to release of large amount of funds for education loans. Now, education loans are easily available from various banks in India and this change is encouraging more and more students to take up higher education despite their financial shortcomings. Many nationalized banks have come up with various educational loan schemes that students can benefit from. Even private banks are not lagging far behind. To help the students in a better way, many colleges and institutes have tied up with the banks. One can get loan up to Rs. 7.5 lakh for studies in India and for abroad up to Rs.15 lakh. The education loan covers the cost of school/college fee, hostel charges, cost of books etc, Apart from the said expenses any other expense incurred during the study period can also be considered. The sum of money offered is against the guarantee, which can be given by uncle neighbor or friend standing as guarantee of full amount of loan. Banks checks the capability of the borrower related to personal discussion with student, annual income, and asset of the family, course's nature and status of the institute before giving the loan.

Education loans are becoming trendier with the influence on getting higher education from abroad, especially in higher education field. We at Rgadmission provide education loan information on different banks.

Bachelor Degree courses like B.COM, B.A, B.Sc and others.

Master Degree courses and Ph.D programs.

Professional courses like Management, Engineering, Law, Computer, Agriculture, Dental, Medical, Veterinary and others.

Certificate courses in Computer offered by reputed institutes which are accredited to the Department of electronics or institutions certified by a university.

Other courses like CA, ICWA and CFA.

Programs which are conducted by the reputed institutions like IIT, XLRI, IIM, NIFT, IISc.

Regular diploma and degree courses like pilot training, Aeronautical, shipping and others. The courses offered should be approved by the Director General of Civil Shipping or Aviation.

Courses that are conducted by the renowned foreign universities.

Evening courses which are conducted by the approved institutes.

Various diploma and degree courses conducted by various colleges and universities approved by Govt., ICMR, UGC, AIBMS, AICTE and others.

Bachelor's Degree-Professional and technical courses which are offered by various reputed universities.

Master's Degree-MS, MBA, MCA and others.

Programs offered by CPA in USA and CIMA in London.

Various regular diploma and degree courses in pilot training, aeronautics or shipping approved or recognized by the competent local shipping or aviation authority.

One can claim a deduction under section 80 E of the Income-Tax Act as the deduction is on the interest paid and not on the main amount.

You will get the tax benefit on an education loan only if the loan is in your name and is taken for the purpose of education of yourself, your spouse or your children.

These deductions are available only for a period of eight years starting from the year in which you start paying the interest on the student loan.

One should remember that one cannot claim tax deductions if one’s employer, family or friends gives you an education loan. You can get tax benefits only if the student loan is from a financial institution, bank or an approved charitable institution.

Tax benefits are not available in respect of interest paid on a loan taken for any course. The course has to be for full-time studies (no part-time courses covered) for any graduate or post graduate course in engineering, medicine, management, or for post graduate course in applied sciences or pure sciences including mathematics and statistics.