Student Educational Loans Enriching the Indian Talent Pool

The forward parading Indian economy offers unbound opportunity to students planning higher education. India not only offers varied career options but also many world class institutes like IITs and IIMs to choose from. But the question that makes or breaks your dream is where the money will come from that will finance the cost of your higher education. There may be several alternatives. If your family has saved enough for your career needs, that can meet your education expenses, then you need not to borrow any money from anywhere and can pursue a dream career. If you are sufficiently capable of getting through the scholarship exams like GRE TOFEL, then there is a bright possibility that you can meet all your education expenses easily. You need to pay very less if you are a scholar of exceptional brilliance.

The government-affiliated institutions like AIIMS, IITs and IIMs provide special deduction in fees if you belong to OBC, SC/ST and any other category. After analysing the total cost of your education, if the reimbursements are more than your family savings and neither you are capable to crack the required scholarship test, then you can apply for a loan from the Indian loan market. To decide on your educational financial requirement you need to follow some basic steps.

Minute analysis of all the direct and indirect expenses of your education is very important when you apply for student loans. The correct interpretation will help you to raise an appropriate amount in a hassle free manner for your education. The total cost of education is the summation of direct costs and indirect costs. Your educational loan requirement can be calculated by deducting the sum of finance Available, subsidy and scholarships available from the total cost. The direct cost is the lion’s share of the total expenses during studies. It includes the necessary expenditures like tuition fees, other fees like maintenance charges and computer charges and the hostel expenses. Indirect cost related to higher education includes daily expenses that are equally important as direct expenses. Expenditures like money spent on books and transportation comes under indirect cost. You can also add your mobile phone bill, stationeries and private tuition fees, as they are some of the essential personal expenses.

You can avail loans up to Rs.10 Lakhs for pursuing education inside India and up to Rs.20 Lakhs for studying abroad at very attractive interest rates with the payment holiday facility. Repayment holiday means the repayment starts one year after the course is completed or six months after getting employment- whichever is earlier. These loans are available for a tenure of maximum seven years and inclusive of the moratorium period. To make them really feasible economic options, several tax Benefits are also available under Section 80E of the IT Act for the educational loans. Apart from this these are hassle free forms of finances available at speedy approvals that matches your urgent need. The tough competition in the loan industry ensures that you get all the convenience of services at virtually your doorstep in a hassle free manner. Further, loans available for many other vocational course-related expenses as well.

the positive changes in the Indian loan market is encouraging and supporting more and more students to go for higher education despite their money shortcomings. Most of the nationalised banks have now various student educational loan plans which the students can benefit from. To ensure that the borrowings are utilised properly, the funds are released as per the fee payment calendar of the institutes. For those studying abroad, exclusive Telegraphic Transfer facilities are available on student educational loans.