Education loans are designed to help students finance their higher education. They often come with special features like moratorium periods and interest subsidies to make education more accessible.
Key Features of Education Loans:
- Moratorium Period: No EMI payments during course duration + 6 months after completion
- Interest Subsidy: Government provides interest subsidy for eligible students
- Lower Interest Rates: Generally lower than personal loans
- Flexible Repayment: Extended repayment tenure up to 15 years
Interest Subsidy Schemes:
- Central Scheme: Up to ₹1 Lakh interest subsidy for economically weaker sections
- State Schemes: Various state governments offer additional subsidies
- Bank Schemes: Some banks offer special rates for education loans
- Merit-based: Higher subsidies for meritorious students
Eligibility Criteria:
- Indian citizen with admission to recognized institutions
- Age between 16-35 years (varies by bank)
- Co-applicant required (parent/guardian/spouse)
- Course should be recognized by UGC/AICTE/Government
- Minimum academic qualifications as per bank requirements
