Education is an integral part of our lives. However, education is not becoming more and more expensive. The higher studies your child goes for, the more you have to plan to save, and pay up. This creates a huge problem, especially for the middle class onward who cannot afford to save that much and pays out of their own pocket. Thankfully, there are education loans to help you out. Banks like IDFC First offer education loans to help your kids pursue their dreams.
What is an education loan?
An education loan sponsors one’s education. Whether you want to study abroad or within the country, an education loan can make that possible. The main motive behind this type of credit is to allow people to follow their creams and careers, so that they do not have to sacrifice all of those just because of the want of money.
Education loans are of 4 types in India:
- Undergraduate education loan: These are for students who have done their secondary education and are now looking to take on higher studies to the undergraduate level.
- Post graduate education loan: This is for those who wish to take PG or Post Graduate courses after taking their graduation course.
- Parents availing education loan: These are loans taken by parents for the education of their children. These are unsecured loans. These are not just for graduate and PG courses, but also for elementary and higher secondary courses.
- Career growth education loan: These are for those which wish to take training, certifications and courses to boost their career.
IDFC Bank Eligibility for education loans
Applicant’s age needs to be 35 years maximum (for non-employed) and 45 years maximum (for working people).
Repayment period-
- Tenure of loan includes duration of study, grace period or moratorium after study and the repayment period
- For courses within India, the repayment tenure is 15 years maximum after the start of repayment period
- For courses abroad, the repayment tenure is 15 years maximum after the start of repayment period
Maximum loan amount is: 80 lakhs to 1.5 crore for courses in India, aboard, at IIMs, IITs and ISBs.
Who can apply?
- An Indian National having secured admission to professional/technical courses in recognized institutions.
- Permanent employees who are employed for not less than three years with any organization and who intend to acquire higher professional qualifications and have secured admissions in a reputed institute.
- Frequency of repayment
- Repayment starts generally 1 year after the end of the course/ 6 months after getting a job, whichever comes earlier.
- Interest repayment starts after disbursement of the loan’s first installment
Get IDFC First Education Loan in easy 4 stages
- Search of the appropriate bank
- Complete documentation and application form filing
- Start of the loan process
- Loan is disbursed
Education loan depends on:
- Academic record
- Co-borrower’s credit score
- Collateral provided
- College/Institute
Documents you’ll need
- ID proof: Aadhaar card, passport, driver’s license, and etc.
- Residential proof: copies of utility bills, gas bills etc.
- Mortgage document
- Last 6 months bank account statement of all banks where applicant has account
- Guarantor form
- Institution detail including admission letter from the institution of study, fees structure, mark sheet or passing certificate of SSC, HSC and other degree courses
Benefits of taking IDFC First Education loans
- Get up to 90% of the education cost covered
- Tuition fees as well as hostel expenses
- Exam, library, and lab fees if applicable
- Any refundable fees paid to the Institute
- Cost of uniforms, books and other essentials
- Travelling expenses
- 0.5% additional discount for female students
- Possibility of getting 1% interest rate cut if you decide to start paying during moratorium
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