How to Choose the Right Education Loan

Events
1

EVENT-_How_to_Save_Lakhs-24

A webinar on “How To Choose the Right Education Loan” was conducted by Gyandhan on Friday, 10 May 2024.

Here are Some Key Takeaways:

  • Introduction to GyanDhan: GyanDhan is India’s premier education financing marketplace, aimed at equalizing and expanding access to education.
  • Role of GyanDhan: They provide end-to-end solutions, assisting students in finding the right education loans by evaluating their academic and financial profiles and connecting them with appropriate lenders.
  • Types of Education Loans: The webinar differentiated between secured and unsecured loans. Secured loans require collateral like property, while unsecured loans do not.
  • Loan Features and Terms: Discussed were interest rates (with secured loans generally offering lower rates), the impact of collateral on loan approval and terms, repayment periods, and the absence of a need for immediate repayment in certain secured loans.
  • Lender Options: GyanDhan has partnerships with over 13 lenders, including public sector banks, private banks, and NBFCs like SBI, ICICI, and HDFC.
  • Tax Benefits: Education loans offer tax benefits under Section 80E, where the interest paid is deductible from taxable income.
  • Additional Features: Some education loans come with insurance options to protect borrowers’ families from financial liabilities.
2

Are interest rates generally fixed or floating?

3

Most banks provide floating interest rates based on the RBI’s repo rate, which can fluctuate over time. However, some lenders like Empower offer fixed rates.

4

Can repayment of secured loans start after education completion?

5

Yes, secured loans often have a moratorium period during which no repayment is required until after education completion.