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Education Loan
What is the loan tenure and mode of repayment for Education Loan? PDF Print E-mail
Written by Site Administrator   
Tuesday, 27 October 2009 14:00
With most banks, your payments will begins six months after you complete your course or you get a job after your complete your course whichever is first.

The tenure is typically 10 to 15 years in equalted monthly installments (EMIs). The tenure will vary depending on the loan amount. Tenure is generally longer for higher loan amounts. Monthly payment amount and other terms can be renegotiated after you get a job and are ready to take up the repayment schedule.

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What are the Income Tax benefits on Education Loan? PDF Print E-mail
Written by Site Administrator   
Tuesday, 27 October 2009 14:01
Terms of taxation for Education Loan are covered under Section 80E of Income Tax Act. Under this section, the interest paid (not the principal) on the Education loan is exempt from income tax. This benefit is available to individuals directly or to parents who applied and are repaying the education loan on behalf of their spouse/children.

The other rules for eligibility for this exemption are that the loan must be obtained from a recognized financial institution. The exemption can be claimed for a period of seven (7) years.

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Education Loan - Concluding Remarks PDF Print E-mail
Written by Site Administrator   
Tuesday, 27 October 2009 14:03
The information presented to you in this article is intended to spread awareness about Educational Loans in India and is sufficient to get you started. We recommend that you approach more than one bank or financial institution to find out all the terms of the loan they offer. Decide your service provider only after sound research and select an option that is flexible and gives you reasonable freedom and clarity on terms of repayment.

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