Receiving education and becoming literate has never been this easy. The right to education is a right everyone should have access. It is one of the fundamental rights of India that receives particular importance as it helps in shaping the future of the country as well as the economy. Many underprivileged people have no access to this right because of lack of resources and awareness.
Now, every citizen of India can gain knowledge with the help of an education loan. Parents can see their children flourish and prosper by giving them the liberty to study or continue with their further studies without any financial issues. Children are the future of the economy, and by denying them the necessary right to education, it is an injustice to the economic and business development of the country. Higher literacy rates of countries prove their ability to grow and overcome all the challenges collectively.
Types of loans
There are two categories of education loan in India:
Institute-based loans:
Many banks in the country offer student loan who aim to study in India as well as overseas. This loan is designed to keep in mind the various financial needs that arise while receiving education from either of the countries.
These loans are further divided into:
Study abroad loans: This loan aims at students who wish to go overseas for further education. Lenders have a list of institutions prepared in advance. These institutions get support from them, and the loan is approved only when the applicant receives admission into one of those institutions.
Domestic loans: This loan is for those who wish to pursue further studies in India. The eligibility criteria are not much different from other loans, and the approval is given once the applicant receives admission in one of the listed institutes of India.
Course-based loans: Banks also have the facility of offering a student loan to those interested in studying at premier institutes like IIT and IIM. Loans are designed to meet the financial requirement of every institute and course. Some of the types of course-based loans are:
Undergraduate loans: They offer financial support to students pursuing degree programs at undergraduate levels.
Professional loans: These loans are designed for those who pursue post-graduate studies or vocational courses.
Career loans: Career-oriented programs and certificate courses can be attended and achieved through these loans.
Features and benefits
An education loan has the following features and benefits:
Ease of access
Helps to finance education in the country and overseas
Loan amounts are customization
The choice of educational course and family income determines the applicant’s loan amount
Government-sponsored subsidies
Repayment after course completion
All About Bank And Loans in India 