Education is one reason for the development of civilization. Every
tradition and culture grows depending upon the knowledge imparted to them
through their ancestors. Education is realistic and helps in solving problems
in the world in a more simplified manner. Education is learning in which the
knowledge, skills, values, benefits and beliefs of a group is transmitted from
one generation to another through discussions, teaching, training and research.
One can even learn to think, feel or act from their experiences. Education is
one of the essentials of investment.
Inflation Rate in
Education Sector
Inflation rate in education sector is constantly growing high.
With every passing year, the graph of inflation is growing in education sector.
Every parent wants to give the best education to their child, and thus to meet
the education needs of your child, it is important to make the right investment
at the right time. Insurance is your investment for the future happenings and
ensures a healthy financial future to you and your family.
What is Education
Loan?
Quality education is important to have a complete and successful
life. ‘Quality Education’ offered by acclaimed educational institutions in
India are costly and not easily available to everyone, this is when education
loans come into picture. These are the funds offered by financial institutions
to merit holders or deserving students so that they can pursue their higher
education, in India or abroad.
Almost all banks offer education loans and the demand for it is
stable in Indian community.
Features of Education
Loan-
The feature of education loan over a personal loan are listed
below-
·
Expensive Education-
Once you have an
education loan, you do not have to worry about accumulating sufficient money to
fund your child’s higher education. The inflation rate of education is growing
rapidly and thus ‘quality education’ has become quite expensive. A good
education loan helps you to be safe from unexpected surprises.
·
Specialized Help-
There are various
expenses in a standard course like deposits, library fees, building deposits
etc. With a good education loan, you can address such needs to your child’s
education without any risk of running out of money.
·
Easily Available-
Education loans are a
priority product in banks and RBI has listed these as a part of priority sector
lending of banks. To get an education loan, all you need to do is confirm some
basic requirements and your ability to repay.
·
Timely Help-
A good education loan
offers support when you are at a crucial stage that promises a successful life-education.
You do not have to worry about collecting the amount required as a full-fledged
education loan puts you at ease.
Benefits
of Education Loan-
The benefits offered are complete deal
makers, when it comes to an education loan. Here are the benefits offered as a
part of the education loan-
1.
Anyone who wishes to study can apply
for this loan as this is universally applicable.
2.
You can avail these to pursue any type
of academic courses (graduation, post-graduation, vocational courses or other
certificate courses), in India and abroad.
3.
You can take loan from a minimum of Rs.
10 lakhs to a maximum of Rs. 15 lakhs. For education abroad, banks will provide
loans for an amount of Rs. 20 lakhs.
4.
The applicants’ annual family income
and the course pursued are the primary factors that determine the applicable
loan amount.
5.
Female students are offered discounts
or lower interest rates.
6.
The applicant can pau the loan post the
completion of course, the repayment period can be stretched up to 5-7 years.
7.
Generally, if the loan is below Rs. 4
lakhs, then there is no need for a security or guarantor.
Each bank, according to their capacity
offers exclusive features and benefits.
Comparing Education
Loans from Top Indian Banks:
|
Lender
|
Loan Amount/ Interest Rate
|
Max. Loan Amount
|
Repayment Tenure
|
|
State Bank of India (Base Rate-
9.70%)
|
Upto Rs.4 lakhs / 13.35% p.a
(base rate + 3.65%)
Between Rs.4 lakhs- Rs.7.5 lakhs / 13.60%
p.a (base rate + 3.90%)
Above Rs.7.5 lakhs / 11.60% p.a
(base rate + 1.90%)
|
Studies in India- Rs.10 lakhs Studies
Abroad- Rs.30 lakhs
|
5-7 years
|
|
Axis Bank
(Base Rate- 9.95%)
|
Upto Rs.4 lakhs / 16.95% p.a
(base rate + 7.00%)
Between Rs.4 lakhs- Rs.7.5 lakhs / 17.95%
p.a (base rate + 8.00%)
Above Rs.7.5 lakhs / 15.95% p.a
(base rate + 6.00%)
|
Studies in India- Rs.10 lakhs Studies
Abroad- Rs.20 lakhs
|
Maximum 7 years
|
|
Punjab National Bank (Base Rate-
10.00%)
|
Upto Rs.4 lakhs / 12.00% p.a
(base rate + 2.00%)
Between Rs.4 lakhs- Rs.7.5 lakhs / 13.00%
p.a(base rate + 3.00%)
Above Rs.7.5 lakhs / 12.50% p.a (base
rate + 2.50%)
|
Studies in India- Rs.10 lakhs
|
Loans upto Rs.7.5 lakhs : 10 years
Loans above Rs.7.5 lakhs : 15 years
|
|
Avanse Education Loan (Avanse Base
Lending Rate- 11.50%)
|
Calculated individually based on
course being pursued and the accompanying cost.
|
Minimum- Rs.50,000 Maximum- No Limit
|
Minimum Repayment Tenure- 12 months
Maximum Repayment Tenure- 120 months
|
Conclusion
Investing into your child’s education is the best way to invest
your money. There are various child plans available in the market as per your
needs and requirements. It is best to understand the child policy better to
determine which policy suits you the best before investing. It can be concluded
that education is the essentials of investment.
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