In India, basic education is barely affordable for most of the country. For those who can afford it, it may not be enough to secure a job. After a high school degree, a bachelor’s is never enough. A post-grad degree, a foreign degree or even a diploma for some vocational training are all more valuable for being accepted in the workplace. Instead of skimping on education, it should be treated as an investment, since, besides a degree, you are placed into a context where your classmates can be potential colleagues or a support system of contacts. Usually the institution has placement programs which may aid in securing a job. And plus its roster of ex-students who have gone on to successful careers may just be your next employer or business partner. The value of an education is worth the investment. However if you can’t afford it, there are options, like education or student loans to avail of. One of the most creative educational systems in the world is the American system, where the fees are high, but it offers the opportunity to try out anything and be anything. Most Americans are able to go through their bachelor’s and master’s through student loans.
In India there are several options of student loans available through financial institutions or banks themselves. In India, almost all banks offer up some scheme or the other for aspiring students. Like a personal loan, an education loan is unsecured. Which means you don’t need to put down some collateral. However unlike a personal loan, the educational loan interest rate isn’t as high due to this. If a loan is taken over Rs 4,00,000, you may have to provide some collateral. This can be anything from securities like stocks and bonds to property. In the failure of being able to repay the loan the bank can confiscate this to balance the debt. The loan fee doesn’t limit itself to the tuition. It can include the excess fees that come with exams, library use, laboratory use, hostel stay, educational tools like books, equipment, uniforms, computers or laptops, etc. However, most of the items bought will belong to the bank in name.
In order to avail of an education loan, you will have to be accepted by the educational institution already. You will be asked to provide proof of this as well as the fees and additional expenses you will have to pay. You may have to prove to the bank that you are a meritorious student, able to pay back the loan, by providing proof of your previous grades. Finally, when you are paying off the loan, you will be exempt from paying tax on the interest amount.