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Types of Education Loans
The most important dream of all parents is that their children get a quality education so that they can lead a bright and successful life. Education is a basic necessity and right of every student, however, people find it very expensive to let their children get the education from a reputed institute from spending money out of their pocket as the cost of education is increasing rapidly day by day. It is increasing at an average of 15% per annum.
The most important dream of all parents is that their children get a quality education so that they can lead a bright and successful life. Education is a basic necessity and right of every student, however, people find it very expensive to let their children get the education from a reputed institute from spending money out of their pocket as the cost of education is increasing rapidly day by day. It is increasing at an average of 15% per annum.
An education loan, in such a scenario, plays a very important role by bridging the gap between the available amount and the required amount for education. An education loan offers a monetary assistance for getting education by financing it.
Education Loans are offered to Indian nationals for pursuing approved courses leading to graduate/postgraduate degree and PG diplomas conducted by colleges/ universities recognized by UGC/Govt./AICTE/AIBMS/ICMR etc or any reputed professional and technical courses. Usually, an amount of Rs. 10 lakhs for study in India and Rs. 20 lakhs for study abroad is offered under education loan for the period of 10 to 15 years.
There are various types of Education Loans in India, such as:
- Undergraduate Education Loan
- Graduate Education Loan
- Professional Education Loan
- Career Education Loan
- Loans for Parents
(1) Undergraduate Education Loan
Undergraduate Education Loan is a loan which is provided to a student who has acquired his/ her higher secondary degree and wants to undertake a course having duration of 2 to 3 years to have more job opportunities.
(2) Graduate Education Loan
Graduate Education Loan is a loan which is provided to a student who has acquired his/ her higher Undergraduate Degree and wants to undertake to pursue advance studies.
(3) Professional Education Loan
Professional Education Loan is a loan which is provided to a student who wishes to pursue any professional degree either in India or in abroad.
(4) Career Education Loan
Career Education Loan is a loan which is provided to a student who wishes to pursue any undergraduate career oriented programs at trading and technical schools and colleges.
(5) Loans for Parents
These types of loans can be availed by parents or relatives of the students for following purposes:
- Costly Uniforms
- Accommodation Expenses
- Tuition Fees
- Transportation Cost
- Other expenses related to education
This loan is categorised under unsecured loans.