The struggle to fetch the top-notch institute for higher education is getting real day by day. Lakhs of students apply for various entrance exams every year with an aim to secure a seat in a government-funded premier institute like IIT or AIIMS. The 2 major reasons for this are “better education” and “lower fees”. However, when students fail to secure a seat in these institutes, they need to choose from other institutes which generally charge very high fees.
The fees of private institutions are significantly large compared to the government-sponsored institutes. This often bewilders students who start planning of dropping their dreams. At such times, Education Loans come to the rescue of students. The success rate of various exams like JEE (Main), CLAT, AIIMS, and CAT happens to be less than 5%. So it becomes important for students to lay out a plan for their higher education in case they are not able to grab a seat in a top-notch govt. institute. Many private and public sector banks in India offer education loan to students like Saraswat Bank Education Loan.
Whether we talk about engineering course, medical courses, management courses or the law courses, the competition to clear the entrance exams is getting tougher every year. In 2019, 9,35,741 students applied for the April session of JEE (Main) alone, with the total intake of IITs being just 13,583 throughout the nation. AIIMS entertain 1207 students only, though 3,38,457 students applied for it in 2019. So it becomes a sort of necessity for the majority of students to go for an education loan in India.
Fortunately, there are now many players in the market offering education loans like banks and NBFCs. These institutions cover a wide range of courses from universities in both India and abroad and offer attractive education loans. Many banks also offer customized education loan schemes specifically for particular courses or institutes.
Top Reasons to Go for an Education Loan
Education loans ease our higher education financing burden to a great extent and also take the burden off the shoulders of parents. There are multiple benefits of availing an education loan:
1. By availing an education loan, families don’t need to invest their valuable savings.
2. Many banks don’t ask for any collateral for loans up to INR 7.5 lakh.
3. The interest incurred on education loans is subjected to tax benefits. To read in detail, click here.
4. Banks offer huge quantum of education loans going up to INR 1 crore, like in the case of ICICI Bank Education Loan.
5.These loans cover almost all kinds of expenses ranging from tuition fee and hostel fee to various other miscellaneous expenses.
6. Most of the banks don’t charge any processing fee or prepayment charges from their customers.
7. To help the students, many schemes are subsidized by the government based on various different criteria.
Many students have already started preferring student loans over self-financing. The Indian education loan market currently stands around INR 78,000 crore. So measure your options wisely and choose en education loan if it suits all your needs.