What is an education loan?
An education loan is a type of loan designed to help students and their families pay for the cost of higher education. These loans are offered by Banks and NBFCs, Foreign lenders registered in India and are usually used to cover tuition fees, room and board, textbooks, and other expenses associated with attending college or university.
Education loans can be used to finance undergraduate and graduate education, as well as vocational and professional training. They typically have lower interest rates than other types of loans, and may offer more flexible repayment options to accommodate the financial circumstances of students and their families.
In many cases, education loans require a co-signer, such as a parent or guardian, who is responsible for repaying the loan if the student is unable to do so. Some education loans may also offer full moratorium or partial interest payment options during Study + six to twelve months.
Research reports indicate that the average Indian household spends 13% of its annual income on higher education fees per child, highlighting the significant financial burden faced by parents in supporting their children’s educational aspirations. However, there is an alternative to relying on parental savings or scholarships – a student loan. By deferring the repayment of the loan until after course completion, students can fund their own education and achieve financial independence. This not only preserves the family’s savings for future contingencies but also helps build a positive credit score, providing easier access to better deals on future loans. Financial consultancy like Wecare Capital arranges education loan that covers the entire cost of education, including living expenses, whether the student chooses to study in India or abroad. With the option of comfortable repayment periods, taking an education loan can help students earn the self-made badge and achieve their dreams.
There are several benefits of taking an education loan to finance your higher education:
Access to Higher Education: Education loans provide access to higher education for individuals who may not have the financial means to pay for it out of pocket. This allows more people to pursue their educational goals and advance their careers.
Low Interest Rates: Education loans typically have lower interest rates compared to other types of loans, such as personal loans or credit cards. This can save borrowers money in interest payments over the life of the loan.
Flexible Repayment Options: Education loans may offer more flexible repayment options than other types of loans, such as income-driven repayment plans that adjust payments based on the borrower’s income or student’s future income i.e. Partial interest/Simple interest/EMI/full moratorium options are available during Study period according to course and customer profile. This can help borrowers manage their loan payments more effectively.
Stress Free Studies: Availability of education loan and flexible repayment options allows the student to focus on studies and excel in career at the same time parents need not to worry about financial arrangements.
Building Credit: Making regular, on-time payments on an education loan can help borrowers build their credit score. This can make it easier to qualify for other types of loans in the future, such as a mortgage or car loan.
Tax Benefits: Borrowers may be eligible for tax benefits on the interest paid on their education loans. This can help reduce the overall cost of borrowing.
How to apply for a student loan?
At Wecare Capital, we make the application process simple and quick. In fact, you just need to keep in mind 4 steps:
Step 1: Reach out to us by visiting our branch or website
Step 2: Fill a simple form
Step 3: Provide all the necessary & relevant documents
Step 4: Once your documentation is done, your loan will be processed and disbursed further after loan agreement execution
To make things slightly more easier, we also provide doorstep services for our educational loans
We will send one of our representatives to your home to help you fill all the forms and collect all the required documents. They will hand-hold you through the entire application process to ensure things are hassles-free and convenient.