Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Facts you need to know about Education Loan

Loan for Education

Facts you need to know about Education Loan

Facts you need to know about Education Loan

With education prices sky-rocketing every year, funding higher education from your own pocket can leave a gaping hole in your savings. But, considering alternative college options due to a lack of funds should never be an option. Personal loans for students can help you get the education you deserve and fulfill your true potential. Before availing of a loan, it is essential that you know a few important things related to it.

Here are some student loan facts you should know before applying for one.

1. Main applicant

The student pursuing the degree is the main applicant for the loan, and hence, will be responsible for repaying the loan. A co-applicant is mandatory for full-time programs. Parents, spouses, or siblings can be co-applicants for the loan. If the student is incapable of making the loan repayments, the co-applicants will be responsible for repaying the loan.

2. Loans can cover more than just tuition fee

Once you receive the admission letter from your desired college, you can get your loan amount approved. Personal loan not only cover your tuition, but also extra expenses such as hostel fees, cost of books, travel costs, and so on.

Additional Read: What are Some of the Challenges of Taking an Education Loan?

3. You can claim tax benefits on your education loan

According to section 80E of the IT Act, the borrower is eligible to claim tax deduction equal to the interest amount. While the entire interest amount can be deducted from your taxable income, this is only allowed for a maximum of 8 years. Note that the principal amount repaid does not qualify for any kind of tax deduction.

4. Loan eligibility depends on the course and university

Lenders want to ensure that borrowers have good employment prospects after finishing their degree so they can repay the loan. Thus, they will make sure that your course is accredited and your university has a high placement rate. All in all, lenders make sure that the course and university the applicant is studying at have a good reputation.

5. Eligibility criteria

The eligibility criteria for Tata Capital’s education loan are as follows:

  • Applicant must be an Indian national
  • Applicant must be between the age of 16-26 years
  • Should have a good past academic record
  • You or your parents should have a stable income
  • Should show security or present a guarantor. Your eligibility will also depend on the creditworthiness of your co-applicants

6. Documents required

The documents required for Tata Capital’s education loan are as follows:

  • Photo identity proof of student and parent. For eg – Aadhar card, voter ID, passport, etc.
  • Attested copies of school mark sheets and certificates
  • Admission letter from school/college you intend to study at
  • Salary slips from the past three months and ITR documents of the guarantor
  • Employment details (if employed)
  • Property documents if immovable property is offered as collateral
  • Income proof for the past six months

Additional Read: Secured Vs Unsecured Education Loans: A Detailed Guide

To sum it up

Looking for education loans to finance your higher education? Look no further. Tata Capital offers competitive education loan interest ratesstarting at 10.99%.

So what are you waiting for? Click here to check out Tata Capital’s personal loan EMI calculator and formulate a repayment plan best suited to your needs.

Apply Now

Add wings to your dream. Apply for an Education loan!

Apply now
Popular Searches
education loan at 0 interest education loan documents education loan eligibility education loan for abroad studies education loan for mba education loan procedure education loan repayment govt education loan application for the loan vidya lakshmi portal
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.