Over the years, education has been getting costlier in India. Some of the most common ways of funding college and university education have always included selling assets such as gold or land, utilizing the savings of the family, and borrowing from relatives as well as friends. Earlier, it was assumed that student or education loan was taken only by those people who belong to the middle-income group. However, people from many affluent families are also realizing the exclusive benefits of taking an Education Loan in Delhi.
The major reasons to apply for an education loan in Delhi:
A metropolis like Delhi comprises of a young population and one of the largest pool of students. The rapidly ascending cost of education is the prime reason contributing to the increasing demand for student or education loans in the city. The various other reasons include:
- Most of the times students are willing to take their financial accountability to preserve the savings of their parents.
- Students also choose to take an education loan rather than opting for other conventional methods as it enables them to enjoy the income tax benefit under 80 E of IT act.
- To build a favorable and positive credit history.
You can take an education loan from any bank or NBFC (Non-Banking Financial Company).
How to get an education loan in Delhi?
Education loans have always played a crucial role in making the pursuit of academic courses convenient and easier. The process of obtaining an education loan varies from bank to bank. However, the basic steps include:
- Fill in the application form–
Firstly, the applicant is required to fill an application form wherein he or she is supposed to provide all the necessary details relating to academics, contact information, etc. You must make sure that the details you have provided are accurate.
- Personal discussion–
After the form has been submitted, a round of personal discussion is conducted where the applicant is asked about the course he or she wants to pursue, his or her academic performance, etc. At this point, it is essential to be confident and clear about the course you have selected and its scope in the future.
- Provide verified documents–
Submit the documents relating to admission so that the bank can confirm the enrollment of the applicant from the respective college or institute.
- The approval or rejection of a loan–
It is compulsory to have a guarantor for an education loan. The bank will conduct a thorough background check of the guarantor and his or her credit report before approving the loan.
- The signature of the applicant on a promissory letter–
After the sanctioning of the loan, the applicant is required to sign a promissory letter or note.
- Loan disbursal–
The bank will disburse the loan amount after all the formalities have been completed.
Therefore, an education loan not only helps to fund your higher education but also provides various other benefits. Availing an Education Loan in Delhi has now become easier and less time-consuming with the advent of various online banking and NBFC platforms.