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Education Loan

Education Loan

When it comes to all the building blocks that form a complete and successful life, nothing is as important as quality education. However, education in India, at least the commonly perceived ‘quality education’ as imparted by acclaimed and influential educational institutions, is decidedly costly and not easily available to everyone- especially those who deserve it based on merit alone. Thus, education loans are vitally important. A barebones explanation for an education loan is thus, ‘funds offered by financial institutions to meritorious and/or deserving students so that the latter can pursue their basic/higher education, in India or abroad’. Almost all banks in India offer education loans, and the demand for it has remained stable with the Indian student community.

Mahalaxmi Finance presents you the best schemes for Education loan in Gurugram (Haryana).

Why Choose Education Loan?

The question should ideally be, why choose an education loan over a personal loan, or the money accumulated in your savings account? The versatility and advantages of education loans are listed below:

Education is Expensive- It’s a matter of instant availability. A comprehensive education loan frees you from the task of accumulating sufficient money to fund your son/daughter’s higher education. And, with inflation and shifting prices, can you ever be 100% certain? A good education is expensive and the expenses aren’t changing in a predictable curve. A good education loan scales accordingly and helps you be safe from unexpected surprises.

Specialised Help- The expenses incurred through a standard study course are many, caution deposits, library fees, building deposits, laboratory fees, etc. With a comprehensive education loan, individual facets of the course can be better addressed without the risk of running out of money. It’s more organized and seamless with an education loan.

Widely and Easily Available- Comprehensive education loans are a priority product in most banks’ arsenal of products and the RBI lists them as part of the priority sector lending of banks. Conforming to some basic requirements and confirming your ability to repay the borrowed amount is all it takes to get on-board.

Timely Assistance- Often, good intent isn’t backed by good monies. A good education loan offers timely help when it comes to a crucial pillar that promises a successful life- education. Nullifying the worry that accompanies the need to gather up the requisite amount, a full-fledged education loan puts you at ease.

Tax Benefit

Repayment of an education loan is deductible under section 80E of the Income Tax Act. The yearly limit for deduction is Rs. 40,000 (for both the principal and the interest). Only loans taken for higher education – full time studies in any graduate or post-graduate, professional, and pure and applied science courses – may claim deduction. The deduction will be available for a maximum of eight years starting from the day you start repaying.

Education Loan Application Checklist:

  1. Confirm upon applicable educational course (University, location, costs, etc.)
  2. Basic Documents to Keep Ready- Address, Age and Nationality Proof.
  3. Attested Marks Cards- Starting from SSLC/10th Std.
  4. Admission Letter as issued by the admitting School/College/Institute.
  5. All essential documents issued by the admitting School/College/Institute, including prospectus, breakup of fees, etc.
  6. Letter from admitting School/College/Institute that stipulates non-availability of hostel facility.
  7. Income Proof- Bank statements (6 months), Salary slips (3 months) & ITR of Parent/Guarantor.
  8. Passport sized photographs (2 nos. each) for applicant, guarantor and parent.
    Studying Abroad- Employment Contract.
  9. Studying Abroad- Entry Permit (Validity, issuing authority etc., must be noted).
  10. Studying Abroad- Admission letter & I-20 form from Foreign Institution.
    Studying Abroad- Passport & Visa.
  11. Documents confirming upon the security/collateral.
  12. Substantiating documents if immovable property is offered as security.
  13. Affidavit confirming that NO education loans have been availed or defaulted on with regards to other banks or financial institutions.
  14. If Employed- Resignation letter, Acceptance of Resignation letter or Sanction letter for study leave.

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