Education loan rates depend on whether you are studying in
India or abroad, the education loan amount, the time period of repaying the
loan and the course for which the loan has been taken. Students applying for
education loans to study in premier institutions or colleges are offered with
lower education loan rates. One
should always keep in mind that the amount that is paid against the amount of
the education loan rates will be
considered for deductions from your taxable income. The lender starts paying
the EMIs till the time the duration of the loan exist.
Because of the increasing fee structure of
higher education, education loan is becoming popular day-by-day. While applying
for an education loan do a study of the education
loan rates and stay updated with the financial market trends that will help
you get the loan at best possible rates. The irony in the education loan rates is that the students will have to give away
more EMIs due to higher education loan
rates if the institution that they want to study is not amongst the premier
institutions. On the other hand, it is possible that they would get placed on
lower packages from such institution.
Education loans in India have become a very
popular method of funding higher education with the growing increase in the
cost of education. Higher cost of education in the fields like engineering,
medical and management have compelled people to finance their child’s education
in India. Most of the public sector and private sector banks offer educational
loans. There has been a latest discussion that the Indian Bank’s Association
will soon come up with widespread ratings of the institutes or colleges to
guide banks in making the right decisions while granting education loans.
Summary: Education loan rates comprise of two types of interest rates. One
of which is the fixed rate of interest and the other is floating rate of
interest. Considering the present fluctuating economic environment it is
advisable to go for loans with floating education
loan rates.
