Board exams are coming to an end and a few of you might already be ready to take admissions in your favorite colleges.With the latest cases of paper leak, the country’s future seems to be at stake and many students are facing difficulty in going forward with their plans.
Education is now considered a basic necessity of every individual. Getting educated is the fundamental right for children between the ages of 6 and 14. It plays a major role in changing the personality of a person and it develops in us a perspective of looking at life.
However, there has been a trend of debate regarding whether education is the only thing that can provide aforementioned things to an individual, including the required knowledge.
In a country like India, where the majority of the population does not even have access to proper learning, educating oneself brings with it a lot of challenges and obstacles.
Every parent has a wish of sending their child to the best school no matter how costly education is. But for many people, getting it is an expensive business and that too from a reputed institute, which creates holes in their pocket.
One way of getting through with the costs of education is taking education loans from banks which can cover educational expenses usually for higher studies. There are plenty of loans that we are provided the facility for, be it car loans or home loans.
But the irony is that the only important loan that we need is education loan but this is the hardest loan to repay, as it has the highest rate of interest of all. Don’t be afraid but this is how it works! It is much easier to opt for car loans and home loans rather than education Loans.
As per studies, the cost spent on education is increasing at about 15 per cent per annum. With this sort of rising expenditure, students and parents end up opting for such loans.
WHAT DOES THIS LOAN COVER?
- Basic fees for the course
- College accommodation and other miscellaneous expenses
WHO CAN APPLY FOR AN EDUCATION LOAN?
A student is the main borrower and the parent or the sibling is the co-applicant. The student will need to repay the money when he gets a job. But if he doesn’t get a job, the co-applicant is liable to repay the amount that they borrowed from the bank.
ELIGIBILITY AND DOCUMENTS REQUIRED:
- Anybody who applies for the loan has to be an Indian citizen, who has got admission into a college/ university recognized by a competent authority in India or abroad
- The applicant should have completed his or her schooling
- A good academic career of an applicant is a must
- The banks require documents, including the admission letter of the institution, fee structure, Class 10 and Class 12 mark-sheets
WHAT HAPPENS IF THE PERSON IS NOT ABLE TO PAY BACK THE LOAN?
“If they are not able to pay the loan back, then we, the bank can take legal actions against them. But in such cases, the one who lends money also comes in the light, as he or she did not have a proper assessment of the person who is asking for a loan,” said a bank manager from the Bank of India, while speaking to us.
[“Source-indiatoday”]
