An education loan can help students and families finance eligible higher-education expenses. Depending on the lender and scheme, financing may cover tuition and other approved costs.
What Can an Education Loan Cover?
Eligible expenses can include tuition fees, examination fees, books, equipment, accommodation and other approved educational costs. The exact coverage depends on the lender or scheme.
Who Can Apply?
The student is generally the primary beneficiary, while a parent or guardian may be required as a co-applicant depending on the product and circumstances.
Common Documents
- Admission or offer letter
- Course and fee details
- Identity/address documents
- Academic records
- Income documents of the co-applicant where required
- Collateral documents where applicable
Interest and Repayment
Loan terms vary. Some education loans may have provisions relating to study periods and repayment starting later, but you must check the specific product rather than assuming a universal moratorium.
Before Taking the Loan
Compare the total cost, repayment start date, interest calculation, fees, collateral requirements, insurance requirements if any, and consequences of delayed repayment.
FAQ
Can an education loan finance studies abroad?
Some lenders offer products for eligible overseas education, subject to course, institution and borrower criteria.
Is collateral always required?
Not necessarily. Requirements depend on the loan amount, product, lender and applicable rules.
Disclaimer: Eligibility, interest, schemes and tax treatment can change. Verify current terms with the lender and relevant authorities.