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What are the disadvantages of Education loan?
Disadvantage of Education loan: The Education Loan has a floating Rate of Interest with a variable index which changes with time. Depending on banks and type of loans that one is taking, the interest rate may change. Loans below 4 lakhs require no guarantor but for the ones above this amount a guarantor is mandatory.
Can education loan be taken twice?
Well, the answer to the above question is – Yes, a student can be eligible for a second education loan. For this, they can either apply for a second education loan from the bank they already have taken their first loan from or they can apply to a different bank.
Which banks in India do not charge processing fee for education loan?
The proof documents are the last three years IT returns, a copy of CA certificate, sale deed of immovable properties, FD and NSC receipt, Bonds or Demat statement. ” #3. Union Bank of India Education Loan Union Bank does not charge any processing fee from Indian students for education loans irrespective of the loan amount.
What are the best education loans in India for students?
SBI also offers one of the lowest interest rates for education loans in India. The SBI Scholar Loan Scheme is exclusively for merit students who want to pursue professional/ technical courses in premier institutions like IITs, IIMs and NITs. Expert Tip: “ Personal guarantee from a reputed person for the loan has an added advantage ”.
Do education loans for courses abroad offer the same amount as India?
No, usually education loans for courses in India do not offer the same amount as for comparable level courses abroad. Education loans offer higher amounts for courses abroad as fees and other expenses may be higher there than for courses in India (which also depends on the educational institution).
Why are education loans more expensive than personal loans?
Though cheaper than personal loans, education loans are more expensive than home loans. “An education loan is costlier because it is an unsecured loan, while the home loan is secured,” explains Punja. When the loan amount is high, banks usually ask for a guarantor, which in most cases is the guardian.