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An Education Loan is a specialized loan designed to help students finance their education, covering expenses such as tuition fees, books, living expenses, and other related costs. It can be used for higher studies in India or abroad. Education loans generally offer lower interest rates and longer repayment tenures.
Repayment usually starts after the course completion or once the student starts earning (moratorium period).
The interest paid on an education loan is eligible for a tax deduction under Section 80E of the Income Tax Act.
Loans below a certain limit (as per the bank's policy) often require no collateral or security.
Higher education loans offer substantial amounts for top universities and professional courses.
Enables students to pursue global education in reputed universities without financial stress.
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