Quality Education is of prime importance to any individual and students go the extra mile to achieve that. However, the cost of education is on the rise these days and opting for an education loan seems to be the single best solution. Education loan is a loan that students apply for in order to complete their educational requirements.  Almost all banks & NBFCs in India offer education loans.

Education Loan Interest Rates


The information is indicative

Parameters for Education Loan

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Education Loan EMI Calculator

Education Loan EMI Calculator is a smart tool that calculates your monthly EMI amount payable to the lender. It’s basically a slider where you enter the values; Principal amount (P), Time duration (N), and Rate of interest (R) to find out your EMI and figure out your finances in advance.

Interest paid on education loan can be deducted from the income of borrower (student) as per Section 80-E of the Income Tax Act

Documents Required for Education Loan

Salaried Self-employed
Application form with photograph Application form with photograph
Identity and Residence proof Identity and Residence proof
Last 6 months bank statements Last 6 months bank statements
Processing fee cheque Processing fee cheque
Latest Salary Slip Proof of Business
Form 16 Business Profile and Previous 3 years Income Tax returns (self and business)
Previous 3 years Profit/Loss and Balance Sheet

Process of Applying

There are numbers of ways in which you can avail an education loan. You can either go to the respective bank and inquire about the loan process, or you can apply online. Once the loan is finalized, the bank will initiate the process by collecting your documents, evaluate the course of study for which you wish to take the loan and then keep you notified.

Different modes of Saving

A great alternative to any financial need is to count on your savings. Some methods of savings are Savings account, RD (Recurring Deposit), SIP (Systematic Investment Plan) in mutual funds and more. Let’s find out the best way to save your money assuming you need to save Rs. 25 lakh in 5 years for your education.
Type Monthly Investment Interest Rate Duration (Years) Amount on Maturity
Savings Account Rs. 41,666 4% 5 Rs. 27.7 Lakhs
Recurring Deposit Rs. 41,666 6% 3 Rs. 29.2 Lakhs
SIP in Mutual Funds Rs. 41,666 18% 5 Rs. 40.7 Lakhs
Hence from the above table SIP is the most worthwhile savings scheme; as SIP will enable you to invest regularly, keeping in mind your long-term savings goal and making you financially stable. Learn about ClearTaxSave to understand personalised investment schemes for you.

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