Description

An education loan is a sum of money borrowed from banks or financial institutions to fund higher education expenses, including tuition fees, accommodation, and books, for studies in India or abroad. These loans offer a "study now, pay later" approach, typically featuring a moratorium period that lasts for the duration of the course plus 6–12 months after graduation before EMI repayments begin.Key Aspects of Education LoansCoverage: Covers tuition fees, accommodation, study materials, laptops, travel, and sometimes insurance.Types: Available as secured (collateral-based) or unsecured (no collateral) loans, often with lower interest rates compared to other personal loans.Eligibility: Generally requires Indian citizenship, secured admission to a recognised institution, and a co-applicant with a steady income.Moratorium Period: A grace period where the student does not have to pay the principal amount, and sometimes even the interest, until they finish their studies and secure a job.Tax Benefits: Under Section 80E of the Income Tax Act, interest paid on education loans is tax-deductible.Application Process: Often routed through specialized portals such as Vidya Lakshmi or Jan Samar