What is an Education Loan?
Education Loans can be defined as a type of loan offered by banks, Non-Banking Financial Companies (NBFCs), or any other lenders to support students with financing their college or university education with an agreement to pay it back within a certain time duration. These loans can cover tuition fees, hostel charges, books, and other education-related expenses.
Education loans are very useful for students who want to acquire higher education from reputed educational institutions within India and Abroad. Education loan is provided to students in the form of funding, scholarships, financing, and rewards, and even sometimes granted in cash. Education loan helps to pay the tuition fee and other expenses in education. The rate of interest on the education loan varies from 8% to 11.5% which depends on the scheme and the loan provider institutes.
Types of Education Loan
Education loans are very important in the perspective of students’ studies, especially for the students who are willing to study higher education. Education loan is often called student loans. There are various types of education loans available in India. In this article, we will learn about education loans along with the various types of education loans and their brief discussion.
Table of Content
- What is an Education Loan?
- Types of Education Loan
- 1. Education Loans Based on Location
- 2. Education Loans Based on the Course of Education
- 3. Education Loans Based on the Security of Collaterals and/or Guarantee
- 4. Loans for Parents
- Features & Benefits of Education Loan
- List of Expenses Covered in Education Loan
- Best Education Loan in 2024
- Conclusion
- FAQs – Types of Education Loan