Education Loan Articles: Education loan is very helpful to pave the way. PSU or Public Sector Banks offer loans up to Rs.20 lacs for overseas study. Education Loans are available to pursue courses like MS, MBA, MCA, CPA, USA, CIMA etc. offered by various universities/institutes abroad.
The first thing that comes to mind as you think of higher studies or a foreign degree is the funding. If money is not a factor then students can achieve their dream to secure their future by studying wherever they want to, UK or US or anywhere in the world.
Feature:
- The interest rates range between 10-13% (depending on the size of the loan and the collateral provided).
- Female students get a concession from 50-100 basis points.
- Some banks levy processing charges of 1% for overseas loans.
- If the overseas loan amount is more than Rs.4 lacs banks do insist on margin money of 15%.
The repayment of the loan starts as soon as the student secures a job or six months, after the completion of the course (whichever is earlier). The repayment tenure is usually between 5-7 years. Person repaying the loan (student or co-borrower – parent/spouse) can claim tax deduction on interest paid on this loan under section 80E.
Student loans or educational loans are paid on semester basis, so if an alternate arrangement works out like securing a scholarship or like wise you will have a choice not to avail of few installments.
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