Education is the ladder to a prosperous life. It acts, as a bridge between poverty and prosperity and so is a must for all. But very often in spite of being talented it is difficult for a student to educate himself in his desired field, due to the huge amount of money required for good quality education in almost all fields, unless of course one chooses to opt in for a simple arts or commerce college education and a degree like B Sc or B Com.
Student loans offered by various lending institutions like ICICI, and nationalized banks like SBI (State Bank Of India), Central Bank of India etc. come useful at such times. Availability of funds at a proper juncture of life can make dreams a reality for many students.
A student loan is a term loan granted to a student to pursue higher education in his/her own country or abroad. These loans usually carry a lower interest rate than other loans as they are often supplemented by student grants from the government. In India the interest rates vary from about 12% to 14% floating depending upon the amount and the tenure. The amount available varies between 4 lacs to 20 lacs. It is possibly one of the cheapest and most flexible loans available.
The following is a standard list of the documents required for availing the student loan:
- Completed Education Loan Application Form.
- Mark sheets of last qualifying examination
- Proof of admission scholarship, studentship etc
- Schedule of expenses for the specified course
- 2 passport size photographs
- Borrower’s Bank account statement for the last six months
- Income tax assessment order, of last 2 years
- Brief statement of assets and liabilities, of the Co-borrower
- Proof of Income (i.e. Salary slips/ Form 16 etc)
Government also offers tax relief on repayment of student loans. With almost all lenders the repayment period often starts with a grace period of 6 months to 1 year after the completion of the course. This grace period is given so that the student gets a proper opportunity to find a job for himself before the commencement of the repayment installments. If the student manages to pay off some amount of the loan in the grace period, this amount is deducted from the principle amount and interest is charged only on the remaining amount.
So if you are a person with high career dreams for your future but find yourself deprived of a quality education to achieve those dreams due to lack of funds, don’t worry at all!! You can fulfill your dreams with the help of various banks and institutions that are ready to extend the financial help. And most of all, you would not have to feel obliged to anybody as this is your own money which you will in repay in future.
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