Education Loan - How do you become eligible?

All you need to know about educational loans

The person who is seeking a student loan has to be a citizen of India The person should have got admission into a professional or technical course after taking an entrance test He/she should have secured admission into a university in India or institution overseas What is the interest rate charged for student/education loan?

Standard interest rates for getting student loans in India are 12-14% pa Another provision that banks provide you with is a choice between fixed and floating interest rates Income tax benefits for educational loans Under Section 80 (e) of the Indian Income Tax Act, a person can claim the interest paid towards the education loan as tax deduction.

The tax deduction can only be availed by the individual on whose name the loan has been taken.

This benefit can be claimed up to 8 years after the repayment has started.

DOCUMENTS REQUIRED

Ø Marksheets of the last qualifying examination for school and graduate studies in India

Ø Proof of admission to the course for which the loan is being applied

Ø Scheduling of expenses for the course

Ø Copies of letter confirming the scholarship

Ø If applicable, copies of foreign exchange permit need to be attached as well

Ø Two passport size photographs

Ø Bank statement for the last six months of the borrower

Ø Income tax assessment order.

This should not be more than two years old Brief statements of assets and liabilities of the borrower If you do not have an account in the bank where you are applying for the loan, you will be required to establish your identity and give proof of residence

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