An education loan is a sum of money borrowed to pay for higher education costs. It can be used to cover tuition, books, supplies, and living expenses.
Benefits
Moratorium period: A period of time when the borrower doesn't need to make payments. This period is often six months to one year after the course ends.
Tax benefits: Borrowers can claim tax deductions on the interest paid on the loan.
Build credit score: Taking an education loan can help build your credit score.
Eligibility
You must be an Indian citizen.
You must have achieved a minimum percentage in your high school and graduation.
You must be admitted to a recognized university in India or abroad for a professional or job-oriented course.
Loan terms
The loan tenure can vary depending on the bank.
The interest rate charged by banks or lenders will accrue interest.
The loan may require collateral.
Repayment
You can defer payments while you're in college.
You may be able to defer payments for an additional six months after earning your degree.
You should be aware that interest will still accumulate during the deferment period.
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