Higher education is the first step to a successful and fulfilling career. Hence, getting in to the best institutes is important. But it is easier said than done. On one hand there is a ton of preparations to be done for the examination which requires a lot of dedication and hard work. On other hand one also needs a strong financial backing. And that is where we come in.
Janakalyan Bank offers easy Education Loan solutions with a good tenure period. Here is everything you need to know about it –
Why take an Education Loan?
If you cannot afford the entire or partial costs for your venture, Education Loan is a solution. It frees you from financial worries but more importantly it builds financial discipline in a person which helps them in the long run.
What is the eligibility to apply for an Education Loan?
1. One should be of Indian nationality.
2. Person’s age should be between 16 to 35 years old.
3. There should be a co-applicant.
4. A collateral security is needed.
What are the Terms & Conditions for Education Loan?
One can get a loan of up to Rs.35 lakhs from Janakalyan Bank’s Education Loan solutions. The tenure period for the loan varies according to the amount. For loans up to Rs. 5 lakhs a tenure period of 8 years is granted. Whereas for the loan amount of Rs. 10 lakhs the tenure period is increased to 10 years. Another important thing to note here is that the tenure period includes the moratorium period as well.
The margin for the loan taken also differs depending on where you are studying. The students studying in India have to abide the margin of 5% whereas students choosing to study abroad have the margin of 15%.
What documents are needed while applying for Education Loan?
1. Loan Application Form in prescribed format
2. One passport size photo
3. Address Proof
4. Identity Proof
5. Salary or Income details
6. Necessary Admission Documents and Academic Record Proof
7. Attested photocopies of mark-sheet
8. Grade sheets of any entrance exam like GRE/GMAT/TOFL
9. Copy of admission letter from the college with fee structure
10. Any other documents required by the Bank
Are there any tax benefits on Education Loan?
When the education loan is in your name, and towards education for yourself, spouse, children or anyone for whom you are the legal guardian deduction is allowed under Section 80E of the Income Tax Act, 1961. This deduction is available for up to 8 years or till payment of interest in full, whichever is earlier. Although, there is no limit to the amount of interest you can claim as a deduction, interest should be paid from your income which is chargeable to tax.
As Benjamin Franklin says, “An investment in knowledge pays the best interest”. So do not hesitate to get the education you need due to the finances. Visit your nearest Janakalyan Bank Branch today.