This forum is to help India understand their education loan better with expert advice.
The highest sum allowed for a study loan, according to RBI, is Rs.10 lakh for programs in India and Rs.20 lakh for programs abroad. According to the rules, collateral security is not needed for loans up to Rs. 4 lakh. Only when the loan surpasses a predetermined sum determined by the bank will collateral and a third-party guarantee be necessary.
In India, the tax benefits for education loans are provided under Section 80E of the Income Tax Act. Here are the key points: Eligibility: Only individuals (not businesses or companies) can claim this deduction.
Which bank/lender is best? Or which bank/lender isn�t the best for an education loan?The answer is subjective!!!Why because it varies from applicant to applicant, their specific needs, financial situation, and even preferences for that matter. In short, all lenders have their pros and cons, and what works best for one person might not be ideal for another.But if you still wish to know which education financing lender is the best for you, then make sure you consider knowing if they offer Online applicationMinimal documentation,customizable options,Low to no collateral,timely closure on the decision taken on your loan application, And last but not least have a higher approval rate.We hope these factors help you determine which lender best suits your specific education financing needs and why.
So, the minimum CIBIL score required for an education loan typically varies from one lender to another. However, an average CIBIL score of 650 or above is generally considered favorable by most lenders as it maximizes the chances of loan approval and also ensures a quicker approval process.In some exceptional cases, banks might still consider approving loans with a lower score, but maintaining a good score always provides better options and terms.Now that you know how important it is to have a high CIBIL Score, don�t forget to periodically check your score and take steps to improve it. After all, monitoring your credit report, paying your bills on time, and managing your debts responsibly are crucial steps to improving your CIBIL score. These healthy financial habits not only enhance your creditworthiness but also open up better financial opportunities and lower interest rates for future loans.
the maximum amount you can borrow without collateral varies by lender but generally ranges between INR 4 to 7.5 lakhs.This means you can secure an education loan up to this amount without needing to pledge any assets as security.However, borrowing limits may differ based on the lender's policies and your eligibility criteria.But wait wait wait!!!!This might not be the maximum limit for all cases.For example, lenders might go above and beyond to support academically bright students securing admissions in Tier 1 or premium colleges.They might even consider giving collateral-free education loans for students pursuing special courses that have comparatively higher employability rates.Also, Unlike Banks, Fintech and NBFCs exclusively offer loans for education without collateral for up to INR 40 lakhs.