Get Education Loan For Your Kid’s Higher Studies

Published on: 8 October 2021

Modified on: 10 April 2023

Highlight: Education cost is on the rise, in such an environment education loans become the best choice to offer the best of education to your child without compromising on other aspects of life. 

Quality education is of critical importance to every individual. It is, in fact, one of the precursors of a successful life. Now you might throw the counterargument of how Bill Gates never made it out of college, but let us remind you that was an exception and not the norm. Most of us need that IIT and MIT degree to land us a well-paying job. Add to that the competition that children face these days in the industry. 

A good college can provide them with a strong foundation to withstand the challenges that life throws their way. However, the cost of education has been on the rise lately. 

In such an environment, education loans seem to be the best option to acquire quality education without burning a hole in your pocket and compromising on other necessities of life. 

What Are Education Loans?

Education loans are loans that students apply for to fulfill the financial requirements needed for a course of their choice. They are also known as study loans. Education loans are intended to cover the cost of tuition, books and supplies, and living expenditures while the borrower is in the process of pursuing a degree. Expenses are often deferred while students are in college and, depending on who the lender is, sometimes they are postponed for an additional six-month period after earning a degree. This period is referred to as the “grace period.” 

Most of the student loans available to individuals in India are granted at a somewhat low interest rate and as an added convenience interest payments need not be made instantly. Students are usually granted a repayment period from the moment they take the loan to the time they start making repayments. Suppose you wish to avail of an education loan but are unemployed or still studying, in that case, a co-signer may be required to provide a guarantee on education loans, like an eligible adult such as a friend, parent, or relative. The repayment of the loan can be made once the student has completed their education. While the loans can be availed by either the student or by their parent/guardian. The repayment responsibility generally lies with the student. Given the flexible terms and conditions associated with paying education loans, availing one is fairly easy.

Different Types Of Educational Loans

Institutions offer several different education loans all of which are proposed for different types of education programs. Based on the type of education that one wants to go after, there are student loans that specialise in diploma and certificate courses, student loans for skill-based courses, student loans for studying in foreign countries, etc. 

#1 On Basis Of Location

There are two main categories of Educational Loans. 

Domestic Education Loan

These are for educational courses that are within the geographical limits of the country. These are the loans you take if your child wants to go to the neighboring city for better educational prospects. Naturally, such shifts will take a lot of financial toll on you. These loans help you to cope with that. 

Foreign Education Loan

Or, as you may call it, study abroad loans. These are for educational courses outside the geographical boundaries of the nation. Based on the type of course, multiple options are available under the study abroad education loans. Apart from paying for your college free, these loans can also help you pay the cost of daily expenditures like food, housing, travel etc. 

In extension to these, the education loans can be further divided based on a few other categories. These comprise the following.

#2 Based On Course

• Higher Education Loan
• Diploma Studies Loan
• Loans for Professional Courses

#3 based on Security Of Collateral

•  Secured Loans
• Unsecured Loans

Education Loans Available In India

#1 Undergraduate Student Loans 

These are availed by individuals who have already undertaken secondary education and wish to undertake a three or four-year course to strengthen their job opportunities. 

#2 Professional/ Graduate Student Loans

 These loans are tailored for professionals/graduates who wish to pursue advanced degrees or higher education at colleges across the country. A student must complete an undergraduate course for a graduate student loan. However, there is no specification on this course, and they can be from any field. 

#3 Loans For Parents 

Parents of students can benefit from these loans. These are unsecured loans that handle expenses related to their child’s education, such as tuition fees, living expenses, books, uniforms, and other expenses such as transportation costs. The loan can be availed by parents and other guardians who wish to enroll their children in secondary schools, military elementary schools, religious, private, or non-public schools across the country.

Conclusion

Educational loans offer you an opportunity to enroll yourself or your child in the college of your or your child’s dream. EarlySalary offers some great deals with justifiable interest rates on education loans so that you can get a quality education without having to compromise on other luxuries of your life. 

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