Take education loan if you need money to study for children

 

It is not easy for everyone to get higher education in the era of increasing inflation. In such a situation, you can complete your education by taking an 'education loan'. Students or their parents can take an education loan from banks for children's undergraduate, postgraduate or professional courses. The condition here is that educational institutions should be recognized by the government.

 

It is easy to take an education loan from the bank where you already have an account. This includes the cost of visiting colleges, hostels, libraries, computers for studying, as well as travel in case of study abroad. There is also a loan for studying abroad. Generally, customers are given up to 15 years to repay an education loan. Apart from this, there can also be an extension of 12 months.

 

The special thing is that under Section 80-E in the Income Tax Act, tax is exempted on the interest paid on education loans. However, this exemption in income tax is available only for eight years from the start of repaying the loan. If the loan period is more than eight years, then there is no tax relief in the following years.

 

If you are also thinking of taking an education loan, then according to the data of some major banks, you know the necessary information about the interest rate, processing fees, duration, etc.

 

In HDFC, you will get an education loan of up to Rs 20 lakh. If you take a loan above Rs 7.5 lakh, then collateral will also be required on the loan. Talking about the interest rate, it starts at 9.65 per cent. Processing fees can be one per cent or Rs 1,000. Its maximum duration is 15 years.

 

In ICICI Bank, you will get an education loan of up to one crore rupees. There is a margin of 5 to 15 per cent on loans above 20 lakh. Talking about the interest rate, the average is 11.25 per cent and the processing fee is one per cent. Its duration depends on the course. It can be 5 to 10 years.

 

In SBI, you will get an education loan of up to Rs 50 lakh. Co-applicants will also be required for this. If you take a loan above Rs 7.5 lakh, then collateral will also be required on the loan. Talking about the interest rate, the average is 8.80 per cent and the processing fees can range from zero to Rs 10,000. Its maximum duration is 15 years.

 

In Bank of Baroda, you will get an education loan of up to 80 lakh rupees. If you take a loan up to Rs 4 lakh, then there is no collateral, but there is a 10% margin over 4 lakh. Talking about the interest rate, this average is 8.85 per cent. Women get a discount of 0.50 per cent on this and the processing fee is zero. Its duration is 10 to 15 years after a one-year moratorium.