Monthly EMI: 0
Principal Amount: 0
Interest Payable: 0
Get affordable Education Loans from top lenders for your child's brighter future!
Pre Admission Sanction
Maximum Loan Repayment Tenure
Tax Benefit U/s 80 (E)
Before applying for the loan, plan your education expenses, know your credit score, decide the loan amount, research available education loan options, and keep the necessary documents ready.
Provide proof of address, photo identity proof, admission letter from the institution, income proof of co-borrower, academic records, collateral documents (if applicable), and PAN card.
Applicants should be aged between 18 to 35 years, with confirmed admission to a recognized institution in India or abroad. Co-borrower with stable income may be required, and financial eligibility will be assessed based on repayment capacity.
Education loan eligibility criteria can vary depending on the country of study, the lender, and the type of loan you're applying for. However, in a general overview, the factors that often influence education loan eligibility are:
Documentation: You will likely need to provide various documents as part of your loan application, such as proof of identity, proof of admission, income documents, and more for both Student as well as the Guarantor or co-borrower.
Using an Education Loan EMI (Equated Monthly Installment) calculator can help you estimate your monthly loan repayment amount.
Education Loan EMI (Equated Monthly Installment) is calculated using the following Compound Interest formula:
EMI = [P * r * (1 + r)^n] / [(1 + r)^n - 1]
Where:
The fees and charges of education loans usually vary from lender to lender and from case to case. The following table will give you a fair idea of the fees and charges related to education loans:
Particulars | Charges |
---|---|
Loan Processing Fees | 0.5% to 2% of Loan Amount |
Loan Cancellation | 0 |
Stamp Duty Charges | As per actuals |
Legal Fees | As per actuals |
Penal Charges | Usually @ 2% per month; 24% p.a. |
EMI / Cheque Bounce Charges | Around Rs 590 per bounce |
Other fees and charges that lenders may levy on your education loan include documentation charges, verification charges, duplicate statement charges, NOC certificate charges and swap.
Ruloans personnel helped me in getting an education loan from axis bank for my son who wanted to complete his medical studies in UK. I was happy with the deal and rate of interest they helped me in getting from the bank.
Hdfc rejected my education loan application as I didn't had any collateral to provide and also my income was a little low than required. I got in touch with Mr. Rohan from RULOANS, he was successful in getting me the loan, the rate was a little higher than usual but I was okay with it as I was happy that atleast I got the loan.
Let’s read about the 5 most important facts on Education Loan tax benefits:
A person can claim the interest portion of a Loan under Section 80E of the Income Tax Act. Citizens can make use of Section 80E of the Income Tax Act, which is targeted solely at the educational sector. Only Education Loans are eligible for tax deductions under Section 80E. Maximum tax deduction amount
Under Section 80E of the Income Tax Act, you may claim the cost of Education Loans as part of the tuition fee you pay to any college, university, or other educational institution. On courses that you, your spouse, and your children enroll in, you can claim Educational Loan tax benefits. You can deduct such debts from your taxes in India whether you took out an Education Loan for a study in India or overseas. The only requirement is that the Loan must be obtained from the Banks and NBFCs that RBI has authorized.
Only individual taxpayers are eligible for Education Loan tax benefits. Under Section 80E of the Income Tax Act, Hindu undivided families (HUFs) are not eligible for tax deductions.
If the following conditions are met, you can claim tax advantages for an Education Loan:
You must be aware that the tax advantages are only applicable to the interest portion of Education Loans, not the principal amount. There is no upper limit to your savings, and you can deduct all of the interest that is due in a given fiscal year.
Section 80E tax deductions are only available if you borrowed money for your study from a legitimate Bank or Non-Banking Financial Companies (NBFCs). Therefore, if you borrow money to pay for your higher education from a friend or a relative, you will not be eligible for any tax benefits.
The moratorium period is a distinctive aspect of education loans. This provision allows you to opt for a deferment of EMI payments for a maximum of 12 months after completing your studies or within 6 months of commencing employment, whichever comes earlier. However, the precise length of the moratorium period is subject to the policies of the respective bank.
While a moratorium period is available, it is advisable to initiate the repayment of your education loan at your earliest convenience. It's important to note that the moratorium period does not exempt you from interest charges. Particularly in India, education loan interest rates are notably high.
Interest continues to accumulate during the moratorium period, even though you aren't required to repay the principal amount. This results in a higher burden of interest and an increased overall loan cost. Moreover, starting repayment early can contribute positively to building a favorable credit score.
The process for repaying an education loan is relatively straightforward. Contact your bank's manager to establish an arrangement for automatic deductions from your account. Additionally, you may want to explore the variety of education loan repayment options that are available in India.
The repayment duration can vary between different banks and is often contingent upon the amount of the loan you've availed. For students pursuing education abroad, the repayment period can extend up to 15 years, affording them ample time to gradually settle the loan through smaller installments.
In regard to prepayment of education loans, it's worth noting that banks generally do not impose charges. However, it's typically not recommended to prepay or fully settle the education loan ahead of schedule. This is primarily due to the fact that education loans offer potential tax deductions on the interest paid, as outlined in Section 80E of relevant tax regulations.