Education Loan - 5 things to Know Before Getting a Education Loan

Education Loan – 5 issues to Know Before Getting a Education Loan

Quality Education is of prime significance to any particular person and students go the additional mile to attain that. However, the price of training is on the rise nowadays and choosing an training loan appears to be the one greatest resolution.

Education loan is a loan that students apply for with the intention to full their instructional necessities.  Almost all banks & NBFCs in India provide training loans.

Education Loan Interest Rates

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The info is indicative

Parameters for Education Loan

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Education Loan EMI Calculator

Education Loan EMI Calculator is a brilliant software that calculates your month-to-month EMI quantity payable to the lender. It’s principally a slider the place you enter the values; Principal quantity (P), Time length (N), and Rate of curiosity (R) to search out out your EMI and determine your funds prematurely.

Interest paid on education loan can be deducted from the income of borrower (student) as per Section 80-E of the Income Tax Act

Documents Required for Education Loan

Salaried Self-employed
Application type with {photograph} Application type with {photograph}
Identity and Residence proof Identity and Residence proof
Last 6 months bank statements Last 6 months bank statements
Processing price cheque Processing price cheque
Latest Salary Slip Proof of Business
Form 16 Business Profile and Previous 3 years Income Tax returns (self and enterprise)
Previous 3 years Profit/Loss and Balance Sheet

Process of Applying

There are numbers of how in which you’ll avail an training loan. You can both go to the respective bank and inquire in regards to the loan course of, or you may apply on-line. Once the loan is finalized, the bank will provoke the method by accumulating your paperwork, consider the course of research for which you want to take the loan after which hold you notified.

Different modes of Saving

An incredible different to any monetary want is to depend in your financial savings.

Some strategies of financial savings are Savings account, RD (Recurring Deposit), SIP (Systematic Investment Plan) in mutual funds and extra.

Let’s discover out one of the best ways to save lots of your cash assuming you must save Rs. 25 lakh in 5 years to your training.

Type Monthly Investment Interest Rate Duration (Years) Amount on Maturity
Savings Account Rs. 41,666 4% 5 Rs. 27.7 Lakhs
Recurring Deposit Rs. 41,666 6% 3 Rs. 29.2 Lakhs
SIP in Mutual Funds Rs. 41,666 18% 5 Rs. 40.7 Lakhs

Hence from the above desk SIP is essentially the most worthwhile financial savings scheme; as SIP will allow you to speculate recurrently, conserving in thoughts your long-term financial savings purpose and making you financially steady.

Learn about ClearTaxSave to know personalised funding schemes for you.

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