Aspiration for higher education from reputed institutions have bolstered the demand for education loans in the country. This loan covers the basic fees of the course along with allied expenses such as the accommodation, exam fee, etc. In this loan, the student is the main borrower while parents, siblings and spouse are co-applicants.
An education loan can be taken for a full-time, part-time or vocational course along with graduation and post-graduation course in the fields of management, engineering and medicine, among others. The loan must repaid by the student once the course is complete.
A unique feature of an education loan is the moratorium period, wherein the student has the option of not paying the EMIs until after 12 months of completing the course or 6 months after he/she starts working, whichever is earlier.