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, purchase of computers for studies, and 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 be an extension of 12 months.
Tax rebate on interest
Its special point 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.
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If you are also thinking of taking an education loan, by July 31, 2020, according to the data of the respective banks, you know the necessary information about the interest rates, processing fees, duration, etc. of various banks.
In SBI
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 HDFC
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 percent. Processing fees can be one per cent or Rs 1,000. Its maximum duration is 15 years. You can get need based loan at
PNB
SBI. Talking about the interest rate, the average is 8.85 percent and no processing fees are charged on it. Its maximum duration is 15 years.
In ICICI Bank
ICICI Bank you will get an education loan of up to one crore rupees. There is a margin of 5 to 15 percent on loans above 20 lakh. Talking about the interest rate, the average is 11.25 percent and the processing fee is one percent. Its duration depends on the course. It can be 5 to 10 years.
In Bank of Baroda
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 percent on this and the processing fee is zero. Its duration is 10 to 15 years after one year moratorium.
