Education Loan Subsidy To Further Downsize Your Loan EMIsJuly 3, 2018
Is your admission to the coveted course in a prestigious university at stake due to an inadequacy of money? If yes, you are a perfect candidate for an education loan. But, the term ‘loan’ may give you a chilly feeling considering the interest rate payable and repayment period. Don’t worry! Education loans won’t give you nightmares like personal loans. Further, attractive education loan subsidy coupled with other concessions makes your study tour smooth and productive.
Education Loans For Smooth Academic Journey
Understanding The Moratorium Period
Do you know that unlike personal loans, your EMIs don’t start the moment you avail of the loan? This is also a form of subsidy considering the fact that you won’t be burdened with any financial obligation till the time you are pursuing the course. This duration is the moratorium period. During this term, you are not required to pay any EMIs. This period extends till the time you are able to secure a job after completing the studies.
The interest for the moratorium period is calculated on simple interest mode. Suppose you have been sanctioned an education loan of INR 1 Lakhs at 12% interest and the moratorium period is 5 years. During the period, INR 12,000 per annum would accumulate as interest on your loan amount. After the period ends, your EMIs would be calculated based on INR 1,60,000. This is equivalent to the sum of the initial loan amount and INR 12,000 interest for 5 years. By this time, you would be financially capable of paying off the EMIs.
Concession for EWS
If you belong to an Economically Weaker Section (EWS), you stand to avail an additional education loan subsidy of 0.5-1% on interest charged depending on the financial institution sanctioning your loan.
Concession for Women
State Bank of India usually grants a loan subsidy amounting to 0.5% to female candidates on the interest rate. This is in line with the governmental vision of promoting higher education rate among women. Other financial institutions are also following suit.
Central Scheme to Provide Interest Subsidy
This scheme is also for students belonging to EWS. The annual income of parents/guardians of such candidates should not exceed INR 4.5 lakhs per annum from all sources. The subsidy would be provided to those learners who would pursue technical or professional courses across India. During the moratorium period of the loan, the simple interest calculated would be further subsidized for such students. The subsidy works independent of any other subsidy being availed by EWS students.
Aforesaid subsidies are intended to offer the much needed respite to students who are on the cusp of their academic lives.
Information About Student Loans From One Single Window
Buddy4Study Education Loan Service has opened a unique corridor wherein those students desirous of availing loan would be interfaced with all major lenders. Loan subsidies readily available would be extended to students from a single window. Further, the team would negotiate with prominent lenders on your behalf. If your candidature qualifies for any scholarship, the same would be brought to your attention to further reduce the burden of loan. This initiative is indeed novel as you can get the best deal without having to run from pillar to post. The tedium associated with loan hunting would be a matter of the past.
Education loan subsidyis a leverage which would help you prove your academic supremacy in the preferred course without any fear playing at the back of your mind. Even a subsidy of 0.5% would translate itself into a significant monetary respite for you once the EMI period starts. Build your career confidently without anything impeding your journey.