{"id":5523,"date":"2022-05-26T06:57:09","date_gmt":"2022-05-26T06:57:09","guid":{"rendered":"https:\/\/varthana.com\/student\/?p=5523"},"modified":"2026-04-29T05:37:38","modified_gmt":"2026-04-29T05:37:38","slug":"top-5-benefits-of-education-loan","status":"publish","type":"post","link":"https:\/\/varthana.com\/student\/top-5-benefits-of-education-loan\/","title":{"rendered":"Top 5 Benefits of Education Loan"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In just the past two years, we have seen learning consortiums and coalitions taking shape, with diverse students seeking a way to transform their dream into a reality. But quality education may not be met due to the rising education inflation. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to a report by the National Sample Survey Office (NSSO), the average cost of general education in private institutions increased by 175% while the same for technical and professional education rose by 96% between 2008 and 2014. These expenses include course fees, books, transportation and coaching, among other things.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> If you are one of the aspirants looking forward to get into a dream college, chances are you\u2019ll need to get into the specifics and understand your education loan needs. Fortunately, education loans are easily available to a large number of students who are facing a financial crunch. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to a report by credit bureau CRIF HighMark, bank disbursement of education loans increased by 9.25% between the year 2017 to 2018. A carefully chosen education loan can become the best financial aid for higher education, it could be the solution whether you want to pursue a management course, engineering or any other diploma course. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">But first, you need to get into the basics and understand it as quickly as you can so you can focus on what really matters &#8211; getting admission and excelling in your studies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can <\/span><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/varthana.com\/student\/apply-for-education-loans-study-in-india\/\"><span style=\"font-weight: 400;\"><span style=\"color: #333399;\">apply for education loan<\/span><\/span><\/a><\/span><span style=\"font-weight: 400;\"> in a public sector or a private bank or even a non-banking financial company (NBFC). But before we tell you the benefits of education loan, keep a few things in mind to avoid financial complications in the future.<\/span><\/p>\n<h2><b>Things to remember while selecting an Education Loan:<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your academic record increases your chances of receiving the best interest rate on a loan. Loan approval is influenced by the chosen institute\/course, the loan amount, and other factors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You should always keep the documents ready. Personal documents such as proof of residence and the admission letter from the institution must be there in the first instance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The turnaround time varies across lenders but it is typically required for pre-sanction inspection and verification of co-applicant, residence and educational institute. Make sure you have at least two months before you need the loan amount to be disbursed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lenders provide a multitude of loan options. Nevertheless, it\u2019s important to compare the options.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Research each lender\u2019s eligibility criteria and then apply for the option that works best for you in terms of costs, interest rate, tenure, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When you apply for a loan, it is absolutely essential that you repay the monthly installments on time.<\/span><\/li>\n<\/ul>\n<blockquote>\n<p style=\"text-align: center;\"><span style=\"text-decoration: underline;\"><strong>Also Read<\/strong><\/span>: <a href=\"https:\/\/varthana.com\/student\/student-education-loan-in-india-pros-and-cons\/\"><b>Student Education Loan in India: Pros and Cons<\/b><\/a><\/p>\n<\/blockquote>\n<p>&nbsp;<\/p>\n<h2><b>What are the benefits or advantages of taking an education loan?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">An education loan not only helps you pay for your higher education, but it also has a number of other advantages. Read further to know about the top 5 benefits of education loan.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\"><strong>1<\/strong>. <strong>Easy Availability<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">You, with the help of your parent, guardian, or a third-party guarantor, apply for education loans or student loans. The loan is easy to avail and your parents don&#8217;t have to liquidate valuable assets to cover education expenses. They can eventually preserve that money for long-term financial goals like buying land or a flat, your marriage, etc.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\"><strong>2. Expense Covered<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">The education loan not only covers the cost of the course but also pays nearly the entire cost of education. The education loan will cover the following expenses:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tuition fees and hostel expenses<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exam, library, and lab fees if applicable<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any refundable fees paid to the institute<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cost of uniforms, books and other essentials<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Travel expenses<\/span><\/li>\n<\/ul>\n<h4><span style=\"font-weight: 400;\"><strong>3. Best Interest Rates<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Interest rates play a significant role in determining whether or not to take out a loan. <\/span><span style=\"color: #333399;\">Education loan interest rates<\/span><span style=\"font-weight: 400;\"> are generally lower in India as well, particularly from public sector banks.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\"><strong>4. Keeping Your Savings Safe<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Taking out an education loan benefits your or your parents&#8217; CIBIL score because timely repayment of EMIs builds the required score and allows you to easily obtain a loan in the future such as a home loan, car loan, and so on.<\/span><\/p>\n<h4><strong>5. Self-reliance<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">The most beneficial aspect of an education loan is that it teaches you to be self-sufficient in your studies. The loan also has the added benefit of relieving the financial burden on your parents.<\/span><\/p>\n<h2><b>Eligibility Criteria<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Every bank or NBFC has its own set of eligibility criteria for education loans, but here are a few that are common-<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The applicant must be of Indian origin.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The applicant must have the documents confirming admission with them at the time of application.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The applicant should be between the ages of 16 and 35.<\/span><\/li>\n<\/ul>\n<h2><b>What are the documentation requirements for an education loan?<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Two passport size photograph<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Age proof<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identity proof<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Residence proof<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bank account statement for past 6 months<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Papers pertaining to the applicant&#8217;s eligibility for any scholarships, as well as an admission confirmation letter<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expense for the course<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mark sheet of test<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Foreign exchange permit copy<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"><strong><a href=\"https:\/\/varthana.com\/student\/education-loan\/\">Varthana education loans<\/a><\/strong> can be availed by either parents, students, or spouses to fund higher education in India. It covers the cost of studies and other expenses. However, before you even get approval for the amount, make sure you&#8217;re ready to pay it back every month, on time. It&#8217;s a good idea to try and ensure that you have at least a rough plan and strategy in place for repaying your loan. <strong><a href=\"https:\/\/varthana.com\/student\/apply\/\">Apply now<\/a><\/strong> to get access to Varthana <strong><a href=\"https:\/\/varthana.com\/student\/benefits-of-a-student-education-loan-in-india-for-both-students-and-parents\/\">education loans benefits<\/a><\/strong>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In just the past two years, we have seen learning consortiums and coalitions taking shape, with diverse students seeking a way to transform their dream into a reality. But quality education may not be met due to the rising education inflation. According to a report by the National Sample Survey Office (NSSO), the average cost [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":5527,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[44],"tags":[73],"acf":[],"_links":{"self":[{"href":"https:\/\/varthana.com\/student\/wp-json\/wp\/v2\/posts\/5523"}],"collection":[{"href":"https:\/\/varthana.com\/student\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/varthana.com\/student\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/varthana.com\/student\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/varthana.com\/student\/wp-json\/wp\/v2\/comments?post=5523"}],"version-history":[{"count":2,"href":"https:\/\/varthana.com\/student\/wp-json\/wp\/v2\/posts\/5523\/revisions"}],"predecessor-version":[{"id":39481,"href":"https:\/\/varthana.com\/student\/wp-json\/wp\/v2\/posts\/5523\/revisions\/39481"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/varthana.com\/student\/wp-json\/wp\/v2\/media\/5527"}],"wp:attachment":[{"href":"https:\/\/varthana.com\/student\/wp-json\/wp\/v2\/media?parent=5523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/varthana.com\/student\/wp-json\/wp\/v2\/categories?post=5523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/varthana.com\/student\/wp-json\/wp\/v2\/tags?post=5523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}